SEHK:708

Stock Analysis Report

Evergrande Health Industry Group

Executive Summary

Evergrande Health Industry Group Limited, an investment holding company, operates as a health management company in the People’s Republic of China.


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.

Share Price & News

How has Evergrande Health Industry Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 708 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.8%

708

-0.1%

HK Healthcare

-0.6%

HK Market


1 Year Return

-35.0%

708

-22.8%

HK Healthcare

-7.6%

HK Market

Return vs Industry: 708 underperformed the Hong Kong Healthcare industry which returned -22.8% over the past year.

Return vs Market: 708 underperformed the Hong Kong Market which returned -7.6% over the past year.


Shareholder returns

708IndustryMarket
7 Day-2.8%-0.1%-0.6%
30 Day6.3%-4.1%-1.2%
90 Day0.3%-5.7%3.0%
1 Year-35.0%-35.0%-21.0%-22.8%-4.2%-7.6%
3 Year430.2%430.2%-30.2%-34.3%12.9%1.5%
5 Year1884.9%1884.9%-22.9%-29.3%13.1%-5.6%

Price Volatility Vs. Market

How volatile is Evergrande Health Industry Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Evergrande Health Industry Group undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Evergrande Health Industry Group is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Evergrande Health Industry Group has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of 708’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Evergrande Health Industry Group regulatory filings.
  • Explore potentially undervalued companies in the Healthcare industry.

Future Growth

How is Evergrande Health Industry Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.7%

Forecasted Healthcare industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Evergrande Health Industry Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Evergrande Health Industry Group performed over the past 5 years?

-66.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 708 is currently unprofitable.

Growing Profit Margin: 708 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 708 is unprofitable, and losses have increased over the past 5 years at a rate of -66.8% per year.

Accelerating Growth: Unable to compare 708's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 708 is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (10.4%).


Return on Equity

High ROE: 708 has a negative Return on Equity (-130.9%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Evergrande Health Industry Group's financial position?


Financial Position Analysis

Short Term Liabilities: 708's short term assets (CN¥39.7B) exceed its short term liabilities (CN¥25.4B).

Long Term Liabilities: 708's short term assets (CN¥39.7B) do not cover its long term liabilities (CN¥41.6B).


Debt to Equity History and Analysis

Debt Level: 708's debt to equity ratio (1648.1%) is considered high.

Reducing Debt: Insufficient data to determine if 708's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: 708 has a high level of physical assets or inventory.

Debt Coverage by Assets: 708's debt is not covered by short term assets (assets are 0.9x debt).


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: 708 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: 708 has sufficient cash runway for 1.1 years if free cash flow continues to reduce at historical rates of -65.5% each year.


Next Steps

Dividend

What is Evergrande Health Industry Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 708's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 708'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 708's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 708's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 708 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 708'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?

1.6yrs

Average management tenure


CEO

Siquan Li (34yo)

1.6yrs

Tenure

CN¥4,676,851

Compensation

Mr. Siquan Li is the Chief Executive Officer Health Industry Group Limited since July 20, 2018 and also served as it's executive Director since July 20, 2018 Until February 1,2019. He tapped into the real ...


CEO Compensation Analysis

Compensation vs Market: Siquan's total compensation ($USD665.39K) is about average for companies of similar size in the Hong Kong market ($USD610.07K).

Compensation vs Earnings: Insufficient data to compare Siquan's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Shouming Shi
Chairman1.8yrsCN¥115.00kno data
Siquan Li
Chief Executive Officer1.6yrsCN¥4.68mno data
Jianjun Peng
Vice Chairman1.5yrsCN¥69.00kno data
Liyong Qin
Executive Director1yrsno datano data
Darong Pan
Chief Financial Officer0yrsno datano data
Ka Ki Pun
Chief Editor of Weekend Weekly0yrsno datano data
Suet Chung Tso
Publisher and Chief Editor of Oriental Sunday0yrsno datano data
York Mui Leung
Chief Editor of Fashion & Beauty15yrsno datano data
Chi Ming Cheung
Chief Editor of New Monday and Publisher of Fashion & Beauty0yrsno datano data
Shu Fat Lui
Chief Editor of Economic Digest0yrsno datano data

1.6yrs

Average Tenure

46yo

Average Age

Experienced Management: 708's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Shouming Shi
Chairman1.8yrsCN¥115.00kno data
Jianjun Peng
Vice Chairman1.5yrsCN¥69.00kno data
Liyong Qin
Executive Director1yrsno datano data
Shing Yim Chau
Independent Non-Executive Director4.9yrsCN¥300.00kno data
Jianwen Guo
Independent Non-Executive Director4.9yrsCN¥300.00kno data
Wu Xie
Independent Non-Executive Director4.9yrsCN¥300.00kno data

3.3yrs

Average Tenure

47yo

Average Age

Experienced Board: 708's board of directors are considered experienced (3.3 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

Evergrande Health Industry Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Evergrande Health Industry Group Limited
  • Ticker: 708
  • Exchange: SEHK
  • Founded: 1999
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: HK$68.256b
  • Shares outstanding: 8.64b
  • Website: https://www.evergrandehealth.com

Number of Employees


Location

  • Evergrande Health Industry Group Limited
  • Evergrande International Center
  • 28th Floor
  • Guangzhou
  • Guangdong Province
  • 510620
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
708SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2008
4NM1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2008

Biography

Evergrande Health Industry Group Limited, an investment holding company, operates as a health management company in the People’s Republic of China. It develops and sells health and living properties; and provides community health management, medical cosmetology, and anti-aging services, as well as elderly care and rehabilitation. The company is involved in the wholesale of home care and healthcare products; and cosmetic products, as well as provision of healthcare services, hospital management, and software and advertisement design services. In addition, it offers information technology consultancy services. The company engages in the real estate development and operations; research and development of pharmaceuticals; and production of medical equipment. Further, it is involved in the research, development, production, and sales of new energy vehicles. The company was formerly known as New Media Group Holdings Limited and changed its name to Evergrande Health Industry Group Limited in April 2015. Evergrande Health Industry Group Limited was founded in 1999 and is headquartered in Guangzhou, China. Evergrande Health Industry Group Limited is a subsidiary of China Evergrande Group. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 13:01
End of Day Share Price2020/02/21 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.