SEHK:3600

Stock Analysis Report

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Executive Summary

Modern Dental Group Limited, an investment holding company, produces and distributes dental prosthetic devices in Europe, Greater China, North America, Australia, and internationally. More Details


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

How has Modern Dental Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3600 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 3600's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-2.2%

3600

-7.5%

HK Medical Equipment

2.2%

HK Market


1 Year Return

-9.3%

3600

86.1%

HK Medical Equipment

7.2%

HK Market

Return vs Industry: 3600 underperformed the Hong Kong Medical Equipment industry which returned 85.7% over the past year.

Return vs Market: 3600 underperformed the Hong Kong Market which returned 7.5% over the past year.


Shareholder returns

3600IndustryMarket
7 Day-2.2%-7.5%2.2%
30 Day-3.5%2.0%8.4%
90 Day3.0%-0.3%15.6%
1 Year-7.9%-9.3%89.1%86.1%11.4%7.2%
3 Year-43.9%-47.7%182.4%168.8%-3.4%-13.5%
5 Year-51.9%-56.0%316.1%281.8%65.4%37.4%

Long-Term Price Volatility Vs. Market

How volatile is Modern Dental Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Modern Dental Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3600 (HK$1.36) is trading below our estimate of fair value (HK$4.68)

Significantly Below Fair Value: 3600 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3600 is unprofitable, so we can't compare its PE Ratio to the HK Medical Equipment industry average.

PE vs Market: 3600 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3600's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 3600 is good value based on its PB Ratio (0.7x) compared to the HK Medical Equipment industry average (3.9x).


Next Steps

Future Growth

How is Modern Dental Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

24.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3600 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

Earnings vs Market: 3600 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 3600's is expected to become profitable in the next 3 years.

Revenue vs Market: 3600's revenue (7.6% per year) is forecast to grow slower than the Hong Kong market (14.1% per year).

High Growth Revenue: 3600's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3600's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Modern Dental Group performed over the past 5 years?

-5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3600 is currently unprofitable.

Growing Profit Margin: 3600 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 3600 is unprofitable, and losses have increased over the past 5 years at a rate of 5.1% per year.

Accelerating Growth: Unable to compare 3600's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 3600 is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (17.7%).


Return on Equity

High ROE: 3600 has a negative Return on Equity (-3.6%), as it is currently unprofitable.


Next Steps

Financial Health

How is Modern Dental Group's financial position?


Financial Position Analysis

Short Term Liabilities: 3600's short term assets (HK$985.2M) exceed its short term liabilities (HK$446.3M).

Long Term Liabilities: 3600's short term assets (HK$985.2M) exceed its long term liabilities (HK$828.4M).


Debt to Equity History and Analysis

Debt Level: 3600's debt to equity ratio (44.9%) is considered high.

Reducing Debt: 3600's debt to equity ratio has reduced from 208.1% to 44.9% over the past 5 years.

Debt Coverage: 3600's debt is well covered by operating cash flow (37.7%).

Interest Coverage: 3600 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Modern Dental Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 3600's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 3600'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 3600's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3600's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 3600 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 3600'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?

6.1yrs

Average management tenure


CEO

Godfrey Ngai (72 yo)

no data

Tenure

HK$3,742,000

Compensation

Mr. Shing Kin Ngai, also known as Godfrey, serves as the Chief Executive Officer at Modern Dental Group Limited and has been its Executive Director since July 05, 2012. Mr. Ngai is primarily responsible fo...


CEO Compensation Analysis

Compensation vs Market: Godfrey's total compensation ($USD482.62K) is above average for companies of similar size in the Hong Kong market ($USD305.97K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kwun Chan
Executive Chairman5.58yrsHK$2.23m0.049%
HK$ 633.7k
Shing Ngai
CEO & Executive Directorno dataHK$3.74m10.21%
HK$ 133.3m
Chi Ngai
COO & Executive Director6.33yrsHK$2.59m6.58%
HK$ 85.8m
Yik Chan
Chief Marketing Officer & Executive Director6.33yrsHK$1.73mno data
Chi Chan
Executive Director6.33yrsHK$1.73mno data
Yik Chan
Executive Director6.25yrsHK$1.82mno data
Ngai Kit Kwan
CFO & Company Secretary4.25yrsno datano data
August Wilhelm Schwafert
Chief Executive Officer of Modern Dental Europe BVno datano datano data
Gregory Scialom
President of Labocast SAS9.42yrsno datano data
James Squirrell
Chief Executive Officer of Modern Dental Pacific2.83yrsno datano data
Laura Kelly
CEO of MicroDental Laboratoriesno datano datano data

6.1yrs

Average Tenure

45yo

Average Age

Experienced Management: 3600's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kwun Chan
Executive Chairman5.58yrsHK$2.23m0.049%
HK$ 633.7k
Shing Ngai
CEO & Executive Directorno dataHK$3.74m10.21%
HK$ 133.3m
Chi Ngai
COO & Executive Director6.33yrsHK$2.59m6.58%
HK$ 85.8m
Yik Chan
Chief Marketing Officer & Executive Director6.33yrsHK$1.73mno data
Chi Chan
Executive Director6.33yrsHK$1.73mno data
Yik Chan
Executive Director6.25yrsHK$1.82mno data
Yue Kwong Chan
Independent Non-Executive Director5.17yrsHK$257.00kno data
Wai Bun Cheung
Independent Non-Executive Director5.17yrsHK$257.00kno data
Ho Wong
Independent Non-Executive Director5.17yrsHK$257.00kno data
Kwun Chan
Executive Vice Chairman5.58yrsHK$2.23m0.36%
HK$ 4.7m
Wai Man Cheung
Independent Non-Executive Director5.17yrsHK$257.00kno data

5.6yrs

Average Tenure

66yo

Average Age

Experienced Board: 3600'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: 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.


Top Shareholders

Company Information

Modern Dental Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Modern Dental Group Limited
  • Ticker: 3600
  • Exchange: SEHK
  • Founded: 1986
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: HK$1.305b
  • Shares outstanding: 959.73m
  • Website: https://www.moderndentalgp.com

Number of Employees


Location

  • Modern Dental Group Limited
  • CEO Tower
  • 17th Floor, Units 1708-16
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3600SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2015
1MDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2015

Biography

Modern Dental Group Limited, an investment holding company, produces and distributes dental prosthetic devices in Europe, Greater China, North America, Australia, and internationally. It operates through t...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 10:22
End of Day Share Price2021/01/15 00:00
Earnings2020/06/30
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.