SEHK:2666

Stock Analysis Report

Genertec Universal Medical Group

Executive Summary

Genertec Universal Medical Group Company Limited provides integrated healthcare services with integration of capital, technology, equipment, specialists, management, and training resources to hospital customers in Mainland China and Hong Kong.

Snowflake

Fundamentals

Good value with moderate growth potential.


Similar Companies

Share Price & News

How has Genertec Universal Medical Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2666 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.3%

2666

-3.0%

HK Healthcare

-1.9%

HK Market


1 Year Return

-13.7%

2666

-27.8%

HK Healthcare

1.1%

HK Market

Return vs Industry: 2666 exceeded the Hong Kong Healthcare industry which returned -27.8% over the past year.

Return vs Market: 2666 underperformed the Hong Kong Market which returned 1.1% over the past year.


Shareholder returns

2666IndustryMarket
7 Day-4.3%-3.0%-1.9%
30 Day-4.0%3.9%1.7%
90 Day0.8%6.7%7.0%
1 Year-9.8%-13.7%-26.2%-27.8%4.7%1.1%
3 Year-14.7%-23.2%-25.9%-30.5%22.6%10.3%
5 Yearn/a-31.9%-37.8%19.8%-0.1%

Price Volatility Vs. Market

How volatile is Genertec Universal Medical Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Genertec Universal Medical Group undervalued compared to its fair value and its price relative to the market?

5.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2666 (HK$5.35) is trading above our estimate of fair value (HK$4.65)

Significantly Below Fair Value: 2666 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2666 is good value based on its PE Ratio (5.7x) compared to the Healthcare industry average (16.2x).

PE vs Market: 2666 is good value based on its PE Ratio (5.7x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 2666 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 2666 is good value based on its PB Ratio (0.8x) compared to the HK Healthcare industry average (1.5x).


Next Steps

Future Growth

How is Genertec Universal Medical Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2666's forecast earnings growth (13.9% per year) is above the savings rate (2%).

Earnings vs Market: 2666's earnings (13.9% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

High Growth Earnings: 2666's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2666's revenue (17.2% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 2666's revenue (17.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2666's Return on Equity is forecast to be low in 3 years time (17.3%).


Next Steps

Past Performance

How has Genertec Universal Medical Group performed over the past 5 years?

24.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2666 has a high level of non-cash earnings.

Growing Profit Margin: 2666's current net profit margins (26.5%) are lower than last year (33.8%).


Past Earnings Growth Analysis

Earnings Trend: 2666's earnings have grown significantly by 24% per year over the past 5 years.

Accelerating Growth: 2666's earnings growth over the past year (9.5%) is below its 5-year average (24% per year).

Earnings vs Industry: 2666 earnings growth over the past year (9.5%) exceeded the Healthcare industry 7.2%.


Return on Equity

High ROE: 2666's Return on Equity (12.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Genertec Universal Medical Group's financial position?


Financial Position Analysis

Short Term Liabilities: 2666's short term assets (CN¥55.0B) exceeds its short term liabilities (CN¥18.3B)

Long Term Liabilities: 2666's short term assets (55.0B) exceeds its long term liabilities (27.3B)


Debt to Equity History and Analysis

Debt Level: 2666's debt to equity ratio (324.8%) is considered high

Reducing Debt: 2666's debt to equity ratio has reduced from 537.5% to 324.8% over the past 5 years.

Debt Coverage: 2666's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 2666's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 2666 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2666's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is Genertec Universal Medical Group's current dividend yield, its reliability and sustainability?

4.85%

Current Dividend Yield


Dividend Yield vs Market

company4.8%marketbottom25%2.2%markettop25%6.3%industryaverage2.5%forecastin3Years4.2%

Current dividend yield vs market & industry

Notable Dividend: 2666's dividend (4.85%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.2%).

High Dividend: 2666's dividend (4.85%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.29%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 2666 has been paying a dividend for less than 10 years.

Growing Dividend: 2666's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.5%), 2666's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Genertec Universal Medical Group's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Jiahong Peng (48yo)

1yrs

Tenure

CN¥4,024,000

Compensation

Ms. Jiahong Peng has been Vice-Chairwoman and Chief Executive Officer of Genertec Universal Medical Group Company Ltd since November 30, 2018. Ms. Peng has been the Chief Financial Officer and Deputy Gener ...


CEO Compensation Analysis

Compensation vs Market: Jiahong's total compensation ($USD575.20K) is about average for companies of similar size in the Hong Kong market ($USD489.10K).

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


Management Age and Tenure

1.0yrs

Average Tenure

48yo

Average Age

Experienced Management: 2666's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

4.4yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 2666's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellCN¥4,570,85606 Aug 19
Brandes Investment Partners, L.P.
EntityCompany
Shares800,500
Max PriceCN¥5.71
BuyCN¥17,789,99520 Jul 19
China General Technology (Group) Holding Co., Ltd.
EntityCompany
Shares3,000,000
Max PriceCN¥5.93
BuyCN¥5,777,96103 Jun 19
China General Technology (Group) Holding Co., Ltd.
EntityCompany
Shares986,000
Max PriceCN¥5.86

Ownership Breakdown

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


Management Team

  • Jing Yang (52yo)

    Deputy General Manager

    • Tenure: 4.8yrs
  • Winnie Lui

    Company Secretary

    • Tenure: 0.4yrs
  • Jiahong Peng (48yo)

    Vice-Chairwoman

    • Tenure: 1yrs
    • Compensation: CN¥4.02m
  • Wang Wenbing (45yo)

    Deputy General Manager

    • Tenure: 2.8yrs
  • Gang Yu (55yo)

    Executive Director

    • Tenure: 1yrs
    • Compensation: CN¥320.00k
  • Shaofeng Niu (42yo)

    Deputy General Manager

    • Tenure: 0.8yrs

Board Members

  • Yichen Zhang (56yo)

    Chairman

    • Tenure: 0yrs
  • Yinquan Li (64yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥179.00k
  • Xiaoping Liu (63yo)

    Non-Executive Director

    • Tenure: 7.4yrs
    • Compensation: CN¥126.00k
  • Zhiyong Liu (48yo)

    Non-Executive Director

    • Tenure: 7.6yrs
    • Compensation: CN¥126.00k
  • Siu Lui Chow (59yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥179.00k
  • Jiahong Peng (48yo)

    Vice-Chairwoman

    • Tenure: 1yrs
    • Compensation: CN¥4.02m
  • Guang Su (38yo)

    Non-Executive Director

    • Tenure: 4.9yrs
  • Demin Han (67yo)

    Independent Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: CN¥179.00k
  • Kun Liu (48yo)

    Non-Executive Director

    • Tenure: 1yrs
  • Gang Yu (55yo)

    Executive Director

    • Tenure: 1yrs
    • Compensation: CN¥320.00k

Company Information

Genertec Universal Medical Group Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Genertec Universal Medical Group Company Limited
  • Ticker: 2666
  • Exchange: SEHK
  • Founded: 1984
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: HK$9.423b
  • Shares outstanding: 1.72b
  • Website: https://www.universalmsm.com

Number of Employees


Location

  • Genertec Universal Medical Group Company Limited
  • Zhongyi Tower
  • 8th Floor
  • Beijing
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2666SEHK (The Stock Exchange of Hong Kong Ltd.)YesDomestic SharesHKHKDJul 2015
5UMDB (Deutsche Boerse AG)YesDomestic SharesDEEURJul 2015
2666SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesDomestic SharesHKHKDJul 2015
UMTA.FOTCPK (Pink Sheets LLC)YesDomestic SharesUSUSDJul 2015
2666SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesDomestic SharesHKHKDJul 2015

Biography

Genertec Universal Medical Group Company Limited provides integrated healthcare services with integration of capital, technology, equipment, specialists, management, and training resources to hospital cust ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 12:56
End of Day Share Price2019/11/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.