Wenzhou Kangning Hospital Valuation

Q: What is the Fair Price of 2120 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2120 (HK$12.5) is trading above our estimate of [[fair value]] (HK$3.91)

Is 2120 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 2120 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2120 (HK$12.5) is trading above our estimate of fair value (HK$3.91)

Significantly Below Fair Value: 2120 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2120?

Key metric: As 2120 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2120. This is calculated by dividing 2120's market cap by their current earnings.
What is 2120's PE Ratio?
PE Ratio	9x
Earnings	CN¥92.92m
Market Cap	CN¥852.83m

2120 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.1x
Enterprise Value/EBITDA	8.1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 2120's PE Ratio compare to its peers?

The above table shows the PE ratio for 2120 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	19.4x
9906 Honliv Healthcare Management Group	32.6x	n/a	HK$1.2b
383 Tian An Medicare	25.7x	n/a	HK$814.5m
3689 Guangdong Kanghua Healthcare Group	11x	n/a	HK$718.9m
2189 Kato (Hong Kong) Holdings	8.1x	n/a	HK$520.0m
2120 Wenzhou Kangning Hospital	9x	n/a	HK$916.1m

Price-To-Earnings vs Peers: 2120 is good value based on its Price-To-Earnings Ratio (9x) compared to the peer average (19.4x).

Price to Earnings Ratio vs Industry

How does 2120's PE Ratio compare vs other companies in the HK Healthcare Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
574 Pa Shun International Holdings	1.9x	n/a	US$8.15m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 2120 is good value based on its Price-To-Earnings Ratio (9x) compared to the Hong Kong Healthcare industry average (13x).

Price to Earnings Ratio vs Fair Ratio

What is 2120's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2120 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 2120's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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