Yestar Healthcare Holdings (SEHK:2393) - Share price, News & Analysis

Q: What is the Fair Price of 2393 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2393 (HK$0.66) is trading below our estimate of [[fair value]] (HK$5)

2393 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	2/6
Financial Health	3/6
Dividends	0/6

2393 Stock Overview

Yestar Healthcare Holdings Company Limited, an investment holding company, engages in the manufacture, distribution, and sale of medical imaging products in Mainland China.

Rewards

Trading at 86.8% below our estimate of its fair value

Became profitable this year

Risk Analysis

Earnings have declined by 40.8% per year over past 5 years

Interest payments are not well covered by earnings

Yestar Healthcare Holdings Competitors

Shanghai Conant Optical

SEHK:2276

HK$2.4b

Shanghai Kindly Medical Instruments

SEHK:1501

HK$4.5b

Suzhou Basecare Medical

SEHK:2170

HK$1.1b

China Isotope & Radiation

SEHK:1763

HK$6.1b

Price History & Performance

Summary of all time highs, changes and price drops for Yestar Healthcare Holdings
Historical stock prices
Current Share Price	HK$0.66
52 Week High	HK$1.29
52 Week Low	HK$0.60
Beta	-0.024
1 Month Change	-22.35%
3 Month Change	-26.67%
1 Year Change	-41.07%
3 Year Change	-53.52%
5 Year Change	-81.87%
Change since IPO	67.09%

Shareholder Returns

	2393	HK Medical Equipment	HK Market
7D	-15.4%	3.1%	1.5%
1Y	-41.1%	-54.1%	-22.7%

Return vs Industry: 2393 exceeded the Hong Kong Medical Equipment industry which returned -54.1% over the past year.

Return vs Market: 2393 underperformed the Hong Kong Market which returned -22.7% over the past year.

Price Volatility

Is 2393's price volatile compared to industry and market?
2393 volatility
2393 Average Weekly Movement	8.7%
Medical Equipment Industry Average Movement	8.7%
Market Average Movement	6.6%
10% most volatile stocks in HK Market	12.8%
10% least volatile stocks in HK Market	3.2%

Stable Share Price: 2393 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 2393's weekly volatility (9%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1971	1,019	James Hartono	https://www.yestarcorp.com

Yestar Healthcare Holdings Company Limited, an investment holding company, engages in the manufacture, distribution, and sale of medical imaging products in Mainland China. It operates through two segments, Imaging Printing Products, and Medical Products and Equipment. The Imaging Printing Products segment manufactures and sells Fujifilm color photographic paper, industrial NDT X-ray films, and PWB films; and trades in imaging equipment.

Yestar Healthcare Holdings Fundamentals Summary

How do Yestar Healthcare Holdings's earnings and revenue compare to its market cap?
2393 fundamental statistics
Market Cap	CN¥1.44b
Earnings (TTM)	CN¥3.33m
Revenue (TTM)	CN¥4.93b

399.8x

P/E Ratio

0.3x

P/S Ratio

Is 2393 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
2393 income statement (TTM)
Revenue	CN¥4.93b
Cost of Revenue	CN¥4.08b
Gross Profit	CN¥848.70m
Other Expenses	CN¥845.37m
Earnings	CN¥3.33m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.0014
Gross Margin	17.21%
Net Profit Margin	0.067%
Debt/Equity Ratio	189.5%

How did 2393 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is 2393 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2393?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 2393. This is calculated by dividing 2393's market cap by their current preferred multiple.
What is 2393's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥1.44b

2393 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	0.5x
Enterprise Value/EBITDA	8.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 2393's PS Ratio compare to its peers?

2393 PS Ratio vs Peers

The above table shows the PS ratio for 2393 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	4.9x
2276 Shanghai Conant Optical	1.6x	n/a	HK$2.4b
1501 Shanghai Kindly Medical Instruments	8.4x	27.7%	HK$4.5b
2170 Suzhou Basecare Medical	8.8x	29.5%	HK$1.1b
1763 China Isotope & Radiation	1x	14.3%	HK$6.1b
2393 Yestar Healthcare Holdings	0.3x	7.5%	HK$1.7b

Price-To-Sales vs Peers: 2393 is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (4.9x).

Price to Earnings Ratio vs Industry

How does 2393's PE Ratio compare vs other companies in the HK Medical Equipment Industry?

Price-To-Sales vs Industry: 2393 is good value based on its Price-To-Sales Ratio (0.3x) compared to the Hong Kong Medical Equipment industry average (5.8x)

Price to Sales Ratio vs Fair Ratio

What is 2393's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2393 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.3x
Fair PS Ratio	0.7x

Price-To-Sales vs Fair Ratio: 2393 is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (0.7x).

Share Price vs Fair Value

What is the Fair Price of 2393 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2393 (HK$0.66) is trading below our estimate of fair value (HK$5)

Significantly Below Fair Value: 2393 is trading below fair value by more than 20%.

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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Future Growth

How is Yestar Healthcare Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

7.5%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 2393's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if 2393's earnings are forecast to grow faster than the Hong Kong market

High Growth Earnings: Insufficient data to determine if 2393's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 2393's revenue (7.5% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 2393's revenue (7.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 2393's Return on Equity is forecast to be very high in 3 years time (58%).

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Past Performance

How has Yestar Healthcare Holdings performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-40.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2393 has high quality earnings.

Growing Profit Margin: 2393 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: 2393's earnings have declined by 40.8% per year over the past 5 years.

Accelerating Growth: 2393 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 2393 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Medical Equipment industry (35.4%).

Return on Equity

High ROE: 2393's Return on Equity (1.5%) is considered low.

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Financial Health

How is Yestar Healthcare Holdings's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 2393's short term assets (CN¥2.8B) exceed its short term liabilities (CN¥2.2B).

Long Term Liabilities: 2393's short term assets (CN¥2.8B) exceed its long term liabilities (CN¥1.6B).

Debt to Equity History and Analysis

Debt Level: 2393's net debt to equity ratio (99.2%) is considered high.

Reducing Debt: 2393's debt to equity ratio has increased from 177.5% to 189.5% over the past 5 years.

Debt Coverage: 2393's debt is well covered by operating cash flow (45.4%).

Interest Coverage: 2393's interest payments on its debt are not well covered by EBIT (1.5x coverage).

Balance Sheet

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Dividend

What is Yestar Healthcare Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2393's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2393's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2393's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2393's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: 2393 is not paying a notable dividend for the Hong Kong market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 2393 has not reported any payouts.

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Management

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

1.2yrs

Average management tenure

CEO

James Hartono (46 yo)

no data

Tenure

CN¥3,853,000

Compensation

Mr. James Hartono serves as Executive Chairman of The Board and Chief Executive Officer of Yestar Healthcare Holdings Company Limited (formerly known as Yestar International Holdings Company Limited). Mr....

CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD570.59K) is above average for companies of similar size in the Hong Kong market ($USD303.06K).

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

Leadership Team

Experienced Management: 2393's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.

Board Members

Experienced Board: 2393's board of directors are considered experienced (8.9 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/08/10 00:00
End of Day Share Price	2022/08/10 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31