Venus Medtech (Hangzhou) (SEHK:2500) - Share price, News & Analysis

2500 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	2/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

2500 Stock Overview

Venus Medtech (Hangzhou) Inc. develops and commercializes transcatheter heart valve medical devices in Mainland China and internationally.

Rewards

Revenue is forecast to grow 30.1% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Volatile share price over the past 3 months

Venus Medtech (Hangzhou) Competitors

Beijing Chunlizhengda Medical Instruments

SEHK:1858

HK$7.9b

Sisram Medical

SEHK:1696

HK$6.3b

MicroPort CardioFlow Medtech

SEHK:2160

HK$7.5b

AK Medical Holdings

SEHK:1789

HK$6.6b

Price History & Performance

Summary of all time highs, changes and price drops for Venus Medtech (Hangzhou)
Historical stock prices
Current Share Price	HK$17.50
52 Week High	HK$66.25
52 Week Low	HK$10.52
Beta	-0.20
1 Month Change	29.44%
3 Month Change	17.14%
1 Year Change	-73.26%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-59.35%

Shareholder Returns

	2500	HK Medical Equipment	HK Market
7D	0.7%	-2.8%	0.5%
1Y	-73.3%	-58.8%	-20.3%

Return vs Industry: 2500 underperformed the Hong Kong Medical Equipment industry which returned -58.8% over the past year.

Return vs Market: 2500 underperformed the Hong Kong Market which returned -20.3% over the past year.

Price Volatility

Is 2500's price volatile compared to industry and market?
2500 volatility
2500 Average Weekly Movement	11.2%
Medical Equipment Industry Average Movement	9.1%
Market Average Movement	6.9%
10% most volatile stocks in HK Market	13.7%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: 2500 is more volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: 2500's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.

About the Company

Founded	Employees	CEO	Website
2009	905	Eric Zi	https://www.venusmedtech.com

Venus Medtech (Hangzhou) Inc. develops and commercializes transcatheter heart valve medical devices in Mainland China and internationally. The company’s products include VenusA-Valve, a transcatheter aortic heart valve replacement (TAVR) product to treat severe aortic stenosis; VenusP-Valve is a transcatheter pulmonary valve system to treat the dysfunction of right ventricular outflow tract; V8/TAV8 balloon aortic valvuloplasty catheter systems; and TriGUARD3, a cerebral embolic protection device for minimizing the risk of brain damage and prevent cerebral embolism during TAVR and other structural heart disease surgeries. It also develops VenusA-Plus and VenusA-Pilot, which are TAVR product candidates; and transcatheter mitral and tricuspid valve replacement products; Liwen RF ablation system for the treatment of hypertrophic cardiomyopathy; and renal denervation for the treatment of hypertension.

Venus Medtech (Hangzhou) Fundamentals Summary

How do Venus Medtech (Hangzhou)'s earnings and revenue compare to its market cap?
2500 fundamental statistics
Market Cap	CN¥6.54b
Earnings (TTM)	-CN¥373.64m
Revenue (TTM)	CN¥415.86m

15.7x

P/S Ratio

-17.5x

P/E Ratio

Is 2500 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
2500 income statement (TTM)
Revenue	CN¥415.86m
Cost of Revenue	CN¥91.52m
Gross Profit	CN¥324.34m
Other Expenses	CN¥697.98m
Earnings	-CN¥373.64m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.85
Gross Margin	77.99%
Net Profit Margin	-89.85%
Debt/Equity Ratio	0.1%

How did 2500 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is 2500 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2500?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 2500. This is calculated by dividing 2500's market cap by their current preferred multiple.
What is 2500's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥6.54b

2500 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	8.7x
Enterprise Value/EBITDA	-14.6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 2500's PS Ratio compare to its peers?

2500 PS Ratio vs Peers

The above table shows the PS ratio for 2500 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	11.5x
1858 Beijing Chunlizhengda Medical Instruments	3.9x	n/a	HK$7.9b
1696 Sisram Medical	2.7x	17.8%	HK$6.3b
2160 MicroPort CardioFlow Medtech	32x	36.7%	HK$7.5b
1789 AK Medical Holdings	7.4x	26.8%	HK$6.6b
2500 Venus Medtech (Hangzhou)	15.7x	30.1%	HK$7.7b

Forward PS

Price-To-Sales vs Peers: 2500 is expensive based on its Price-To-Sales Ratio (15.7x) compared to the peer average (11.5x).

Price to Earnings Ratio vs Industry

How does 2500's PE Ratio compare vs other companies in the HK Medical Equipment Industry?

Price-To-Sales vs Industry: 2500 is expensive based on its Price-To-Sales Ratio (15.7x) compared to the Hong Kong Medical Equipment industry average (6.9x)

Price to Sales Ratio vs Fair Ratio

What is 2500'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.

2500 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	15.7x
Fair PS Ratio	13.1x

Price-To-Sales vs Fair Ratio: 2500 is expensive based on its Price-To-Sales Ratio (15.7x) compared to the estimated Fair Price-To-Sales Ratio (13.1x).

Share Price vs Fair Value

What is the Fair Price of 2500 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate 2500's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate 2500's fair value for valuation analysis.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2500's PEG Ratio to determine if it is good value.

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Future Growth

How is Venus Medtech (Hangzhou) forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

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

48.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2500 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 2500 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 2500 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 2500's revenue (30.1% per year) is forecast to grow faster than the Hong Kong market (10.1% per year).

High Growth Revenue: 2500's revenue (30.1% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 2500 is forecast to be unprofitable in 3 years.

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Past Performance

How has Venus Medtech (Hangzhou) performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

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

-6.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2500 is currently unprofitable.

Growing Profit Margin: 2500 is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: 2500 is unprofitable, and losses have increased over the past 5 years at a rate of 6.9% per year.

Accelerating Growth: Unable to compare 2500's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2500 is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (35.4%).

Return on Equity

High ROE: 2500 has a negative Return on Equity (-8.02%), as it is currently unprofitable.

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Financial Health

How is Venus Medtech (Hangzhou)'s financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: 2500's short term assets (CN¥3.4B) exceed its short term liabilities (CN¥208.5M).

Long Term Liabilities: 2500's short term assets (CN¥3.4B) exceed its long term liabilities (CN¥269.1M).

Debt to Equity History and Analysis

Debt Level: 2500 has more cash than its total debt.

Reducing Debt: Insufficient data to determine if 2500's debt to equity ratio has reduced over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 2500 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 2500 has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of 30.7% each year

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Dividend

What is Venus Medtech (Hangzhou) 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
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2500's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2500'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 2500's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2500's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 2500 has not reported any payouts.

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Management

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

2.3yrs

Average management tenure

CEO

Eric Zi (52 yo)

9.67yrs

Tenure

Mr. Zhenjun Zi, also known as Eric, is Founder and Managing Partner at DiNovA Venture Capital. Prior to this, Mr. Zi served as Business Development & Strategic Planning Director at Lifetech Scientific Corp...

Leadership Team

Experienced Management: 2500's management team is considered experienced (2.3 years average tenure).

Board Members

Experienced Board: 2500's board of directors are considered experienced (3.7 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.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/07/02 00:00
End of Day Share Price	2022/06/30 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31