UMP Healthcare Holdings (SEHK:722) - Share price, News & Analysis

Q: What is the Fair Price of 722 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

722 (HK$0.74) is trading below our estimate of [[fair value]] (HK$5.11)

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

722 Stock Overview

UMP Healthcare Holdings Limited, an investment holding company, provides a range of medical and healthcare services in Hong Kong, Macau, and Mainland China.

Rewards

Trading at 85.5% below our estimate of its fair value

Risk Analysis

Dividend of 5.81% is not well covered

Large one-off items impacting financial results

Profit margins (5%) are lower than last year (10.7%)

Shareholders have been diluted in the past year

+ 1 more risk

UMP Healthcare Holdings Competitors

Guangdong Kanghua Healthcare

SEHK:3689

HK$611.9m

Kato (Hong Kong) Holdings

SEHK:2189

HK$600.0m

Rici Healthcare Holdings

SEHK:1526

HK$795.2m

Hang Chi Holdings

SEHK:8405

HK$316.0m

Price History & Performance

Summary of all time highs, changes and price drops for UMP Healthcare Holdings
Historical stock prices
Current Share Price	HK$0.74
52 Week High	HK$0.97
52 Week Low	HK$0.67
Beta	0.53
1 Month Change	0%
3 Month Change	-1.33%
1 Year Change	-10.84%
3 Year Change	-47.14%
5 Year Change	-64.76%
Change since IPO	-61.66%

Recent News & Updates

May 13

Here's What To Make Of UMP Healthcare Holdings' (HKG:722) Decelerating Rates Of Return

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'll want to...

Shareholder Returns

	722	HK Healthcare	HK Market
7D	1.4%	-2.7%	-2.7%
1Y	-10.8%	-67.0%	-23.6%

Return vs Industry: 722 exceeded the Hong Kong Healthcare industry which returned -67% over the past year.

Return vs Market: 722 exceeded the Hong Kong Market which returned -23.6% over the past year.

Price Volatility

Is 722's price volatile compared to industry and market?
722 volatility
722 Average Weekly Movement	3.1%
Healthcare Industry Average Movement	6.9%
Market Average Movement	6.4%
10% most volatile stocks in HK Market	12.9%
10% least volatile stocks in HK Market	3.1%

Stable Share Price: 722 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 722's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1990	476	Yiu Kwong Sun	https://www2.ump.com.hk

UMP Healthcare Holdings Limited, an investment holding company, provides a range of medical and healthcare services in Hong Kong, Macau, and Mainland China. It operates in two segments, Corporate Healthcare Solution Services and Clinical Healthcare Services. The company offers virtual care; family medicine; specialist consultation services, including internal medicine, surgery, pediatrics, cardiology, dermatology, otorhinolaryngology, orthopedics, ophthalmology, urology, gastroenterology and hepatology, radiology, endocrinology, and diabetes; and dental care services, such as dental implant, cosmetic dentistry, periodontal treatments, and orthodontics, as well as traditional Chinese medicines.

UMP Healthcare Holdings Fundamentals Summary

How do UMP Healthcare Holdings's earnings and revenue compare to its market cap?
722 fundamental statistics
Market Cap	HK$579.17m
Earnings (TTM)	HK$34.37m
Revenue (TTM)	HK$682.53m

16.9x

P/E Ratio

0.8x

P/S Ratio

Is 722 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
722 income statement (TTM)
Revenue	HK$682.53m
Cost of Revenue	HK$219.73m
Gross Profit	HK$462.81m
Other Expenses	HK$428.44m
Earnings	HK$34.37m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Sep 23, 2022

Earnings per share (EPS)	0.044
Gross Margin	67.81%
Net Profit Margin	5.04%
Debt/Equity Ratio	0%

How did 722 perform over the long term?

See historical performance and comparison

Dividends

5.8%

Current Dividend Yield

96%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 722 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings 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 722?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 722. This is calculated by dividing 722's market cap by their current preferred multiple.
What is 722's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	HK$579.17m

722 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	0.6x
Enterprise Value/EBITDA	4.1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 722's PE Ratio compare to its peers?

722 PE Ratio vs Peers

The above table shows the PE ratio for 722 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	9.1x
3689 Guangdong Kanghua Healthcare	9.3x	n/a	HK$611.9m
2189 Kato (Hong Kong) Holdings	6.1x	n/a	HK$600.0m
1526 Rici Healthcare Holdings	13.4x	n/a	HK$795.2m
8405 Hang Chi Holdings	7.5x	n/a	HK$316.0m
722 UMP Healthcare Holdings	16.9x	n/a	HK$579.2m

Price-To-Earnings vs Peers: 722 is expensive based on its Price-To-Earnings Ratio (16.9x) compared to the peer average (9.1x).

Price to Earnings Ratio vs Industry

How does 722's PE Ratio compare vs other companies in the HK Healthcare Industry?

Price-To-Earnings vs Industry: 722 is expensive based on its Price-To-Earnings Ratio (16.9x) compared to the Hong Kong Healthcare industry average (16.4x)

Price to Earnings Ratio vs Fair Ratio

What is 722's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

722 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 722's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 722 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 722 (HK$0.74) is trading below our estimate of fair value (HK$5.11)

Significantly Below Fair Value: 722 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 UMP Healthcare Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

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

31.2%

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 UMP Healthcare Holdings 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.

Discover growth companies

Examine UMP Healthcare Holdings's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
UMP Healthcare Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

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

Past Performance Score

1/6

Past Performance Score 1/6

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

10.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 722 has a large one-off loss of HK$21.5M impacting its December 31 2021 financial results.

Growing Profit Margin: 722's current net profit margins (5%) are lower than last year (10.7%).

Past Earnings Growth Analysis

Earnings Trend: 722's earnings have grown by 10.9% per year over the past 5 years.

Accelerating Growth: 722's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 722 had negative earnings growth (-41.7%) over the past year, making it difficult to compare to the Healthcare industry average (-0.06%).

Return on Equity

High ROE: 722's Return on Equity (4.7%) is considered low.

Discover strong past performing companies

Financial Health

How is UMP Healthcare Holdings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: 722's short term assets (HK$480.1M) exceed its short term liabilities (HK$200.3M).

Long Term Liabilities: 722's short term assets (HK$480.1M) exceed its long term liabilities (HK$61.4M).

Debt to Equity History and Analysis

Debt Level: 722 is debt free.

Reducing Debt: 722 has not had any debt for past 5 years.

Debt Coverage: 722 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 722 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

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

5.81%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 722's dividend (5.81%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.92%).

High Dividend: 722's dividend (5.81%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.54%).

Stability and Growth of Payments

Stable Dividend: 722 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 722's dividend payments have increased, but the company has only paid a dividend for 6 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (95.7%), 722's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (27.3%), 722's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

7.1yrs

Average management tenure

CEO

Yiu Kwong Sun (79 yo)

7.08yrs

Tenure

HK$7,595,000

Compensation

Dr. Yiu Kwong Sun has been Chief Executive Officer at UMP Healthcare Holdings Limited since August 29, 2015 and its Director since April 23, 2015 also serves as its Chairman. Dr. Sun has been Executive Dir...

CEO Compensation Analysis

Compensation vs Market: Yiu Kwong's total compensation ($USD967.53K) is above average for companies of similar size in the Hong Kong market ($USD241.51K).

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

Leadership Team

Experienced Management: 722's management team is seasoned and experienced (7.1 years average tenure).

Board Members

Experienced Board: 722's board of directors are considered experienced (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

SEHK:722 Recent Insider Transactions by Companies or Individuals
Date	Value	Name	Entity	Shares	Max Price
09 Jun 22	BuyHK$157,540	Yiu Kwong Sun	Individual	200,000	HK$0.79
08 Jun 22	BuyHK$10,780	Luen Wai Lee	Individual	14,000	HK$0.77
13 May 22	BuyHK$155,210	Luen Wai Lee	Individual	220,000	HK$0.71
13 May 22	BuyHK$137,356	Man Kin Sun	Individual	184,000	HK$0.75
01 Apr 22	BuyHK$80,000	Luen Wai Lee	Individual	100,000	HK$0.80
21 Jan 22	BuyHK$38,681	Luen Wai Lee	Individual	46,000	HK$0.84
20 Jan 22	BuyHK$45,862	Luen Wai Lee	Individual	54,000	HK$0.85
28 Dec 21	BuyHK$3,688,188	On Yip Tsang	Individual	4,386,000	HK$0.84
29 Oct 21	BuyHK$16,600	Luen Wai Lee	Individual	20,000	HK$0.83
24 Sep 21	BuyHK$429,138	Luen Wai Lee	Individual	540,000	HK$0.79

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.

Top Shareholders

Top 14 shareholders own 74.28% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
30.65%	Yiu Kwong Sun	239,904,286	HK$177.5m	0.08%	no data
15.23%	Chow Tai Fook Capital Limited	119,180,175	HK$88.2m	0%	no data
11.73%	China Resources Medical Holdings Company Limited	91,803,000	HK$67.9m	0%	no data
6.09%	EM Team Limited	47,650,000	HK$35.3m	0%	no data
2.85%	Pak Cheung Lee	22,273,277	HK$16.5m	0%	no data
2.37%	Man Kin Sun	18,533,958	HK$13.7m	1%	no data
2.29%	Cheuk Kwan Kwok	17,948,657	HK$13.3m	0%	no data
1.46%	Kar Chung Lee	11,388,000	HK$8.4m	0%	no data
0.58%	Snow Lake Capital (HK) Ltd	4,526,000	HK$3.3m	0%	0.19%
0.57%	On Yip Tsang	4,486,000	HK$3.3m	0%	no data
0.32%	Luen Wai Lee	2,508,745	HK$1.9m	15.36%	no data
0.064%	Wing Sun Yeung	500,000	HK$370.0k	0%	no data
0.042%	Kwok Tung Li	328,000	HK$242.7k	0%	no data
0.041%	Pheim Asset Management Sdn. Bhd.	319,022	HK$236.1k	0%	0.08%

Data	Last Updated (UTC time)
Company Analysis	2022/09/22 00:00
End of Day Share Price	2022/09/22 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30