SEHK:2120

Stock Analysis Report

Wenzhou Kangning Hospital

Executive Summary

Wenzhou Kangning Hospital Co., Ltd. operates and manages a network of healthcare facilities in the People’s Republic of China.


Snowflake Analysis

Excellent balance sheet and overvalued.

Share Price & News

How has Wenzhou Kangning Hospital's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2120's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.1%

2120

4.8%

HK Healthcare

3.6%

HK Market


1 Year Return

-54.8%

2120

-37.0%

HK Healthcare

-18.5%

HK Market

Return vs Industry: 2120 underperformed the Hong Kong Healthcare industry which returned -38.9% over the past year.

Return vs Market: 2120 underperformed the Hong Kong Market which returned -19.8% over the past year.


Shareholder returns

2120IndustryMarket
7 Day-1.1%4.8%3.6%
30 Day-12.9%-5.7%-3.8%
90 Day-15.5%-23.2%-13.2%
1 Year-54.6%-54.8%-35.6%-37.0%-15.5%-18.5%
3 Year-49.4%-50.3%-45.4%-48.7%0.7%-9.5%
5 Yearn/a-52.4%-54.5%-14.0%-27.8%

Price Volatility Vs. Market

How volatile is Wenzhou Kangning Hospital's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wenzhou Kangning Hospital undervalued compared to its fair value and its price relative to the market?

21.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2120 (HK$18.3) is trading above our estimate of fair value (HK$6.6)

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


Price To Earnings Ratio

PE vs Industry: 2120 is poor value based on its PE Ratio (21.2x) compared to the Healthcare industry average (13.7x).

PE vs Market: 2120 is poor value based on its PE Ratio (21.2x) compared to the Hong Kong market (9.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2120's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2120 is good value based on its PB Ratio (1x) compared to the HK Healthcare industry average (1.3x).


Next Steps

Future Growth

How is Wenzhou Kangning Hospital forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

16.7%

Forecasted Healthcare industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 2120's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if 2120's earnings are forecast to grow faster than the Hong Kong market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if 2120's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 2120's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 2120's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Wenzhou Kangning Hospital performed over the past 5 years?

7.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2120 has a large one-off gain of CN¥14.3M impacting its December 31 2019 financial results.

Growing Profit Margin: 2120's current net profit margins (6.7%) are lower than last year (10.8%).


Past Earnings Growth Analysis

Earnings Trend: 2120's earnings have grown by 7.6% per year over the past 5 years.

Accelerating Growth: 2120's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2120 had negative earnings growth (-28.9%) over the past year, making it difficult to compare to the Healthcare industry average (7%).


Return on Equity

High ROE: 2120's Return on Equity (3%) is considered low.


Next Steps

Financial Health

How is Wenzhou Kangning Hospital's financial position?


Financial Position Analysis

Short Term Liabilities: 2120's short term assets (CN¥621.5M) exceed its short term liabilities (CN¥616.7M).

Long Term Liabilities: 2120's short term assets (CN¥621.5M) exceed its long term liabilities (CN¥239.1M).


Debt to Equity History and Analysis

Debt Level: 2120's debt to equity ratio (25.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 2120's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 2120's debt is well covered by operating cash flow (35.1%).

Interest Coverage: 2120 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Wenzhou Kangning Hospital's current dividend yield, its reliability and sustainability?

1.83%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2120's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2120's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2120's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2120's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2120 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2120's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure


CEO

Lianyue Wang (50yo)

8.58s

Tenure

CN¥454,709

Compensation

Ms. Lianyue Wang serves as General Manager at Wenzhou Kangning Hospital Co., Ltd. Since September 2011, and has been its Executive Director since September 22, 2014 were she is primarily responsible for th ...


CEO Compensation Analysis

Compensation vs Market: Lianyue's total compensation ($USD64.54K) is below average for companies of similar size in the Hong Kong market ($USD300.81K).

Compensation vs Earnings: Lianyue's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Weili Guan
Chairman5.58yrsCN¥526.71k25.24% CN¥335.6m
Lianyue Wang
GM & Executive Director8.58yrsCN¥454.71k5.22% CN¥69.4m
Hongyue Wang
CFO & Executive Director5.58yrsCN¥289.77k5.9% CN¥78.5m
Jian Wang
Vice GM & Joint Company Secretaryno datano datano data
Qian Wang
Deputy General Manager5.75yrsno datano data
Chaoyi Zhou
Vice General Manager5.58yrsno datano data
Minjie Ye
Vice General Manager5.58yrsno datano data
Yi Xu
Vice General Manager5.58yrsno datano data
Feixue Zhang
Vice General Manager5.08yrsno datano data
Weiguang Jin
Vice General Managerno datano datano data

5.6yrs

Average Tenure

49.5yo

Average Age

Experienced Management: 2120's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Weili Guan
Chairman5.58yrsCN¥526.71k25.24% CN¥335.6m
Lianyue Wang
GM & Executive Director8.58yrsCN¥454.71k5.22% CN¥69.4m
Hongyue Wang
CFO & Executive Director5.58yrsCN¥289.77k5.9% CN¥78.5m
Lijun Lin
Non-Executive Director2.83yrsno datano data
Chong Key Got
Independent Non-Executive Directorno datano datano data
Yang Yang
Non-Executive Director5yrsno datano data
Yat Keung Chong
Independent Non-Executive Director5yrsCN¥70.00kno data
Zhi Huang
Independent Non-Executive Director5yrsCN¥70.00kno data
Fangjun Sun
Chairman of the Supervisory Committee5.58yrsCN¥52.00kno data
Jingou Huang
Supervisor5.58yrsno datano data

5.6yrs

Average Tenure

50yo

Average Age

Experienced Board: 2120's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 2120 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Wenzhou Kangning Hospital Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wenzhou Kangning Hospital Co., Ltd.
  • Ticker: 2120
  • Exchange: SEHK
  • Founded: 1996
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: HK$1.330b
  • Shares outstanding: 72.67m
  • Website: https://www.knhosp.cn

Number of Employees


Location

  • Wenzhou Kangning Hospital Co., Ltd.
  • No.1 Shengjin Road
  • Huanglong Residential District
  • Wenzhou
  • Zhejiang Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2120SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDNov 2015
4WKDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURNov 2015

Biography

Wenzhou Kangning Hospital Co., Ltd. operates and manages a network of healthcare facilities in the People’s Republic of China. The company operates through two segments, Healthcare Service and Property Investment and Development. It primarily focuses on providing psychiatric specialty care. The company also provides property development, leasing, and rental services, as well as hospital management services. The company was formerly known as Wenzhou City Kangning Psychiatric Rehabilitation Hospital and changed its name to Wenzhou Kangning Hospital Co., Ltd. in October 2014. Wenzhou Kangning Hospital Co., Ltd. was founded in 1996 and is headquartered in Wenzhou, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 14:49
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.