SEHK:8437

Stock Analysis Report

Executive Summary

RMH Holdings Limited, an investment holding company, provides dermatology treatment solutions in Singapore.

Rewards

Trading at 47.4% below its fair value

Earnings grew by 20.6% over the past year

Risk Analysis

Earnings have declined by -24.01% per year over past 5 years

Highly volatile share price over past 3 months

Does not have a meaningful market cap (HK$96M)



Snowflake Analysis

Flawless balance sheet and good value.

Share Price & News

How has RMH Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8437's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-12.0%

8437

-1.9%

HK Healthcare

-1.4%

HK Market


1 Year Return

-53.3%

8437

-18.5%

HK Healthcare

3.5%

HK Market

Return vs Industry: 8437 underperformed the Hong Kong Healthcare industry which returned -12.9% over the past year.

Return vs Market: 8437 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

8437IndustryMarket
7 Day-12.0%-1.9%-1.4%
30 Day-13.0%1.8%1.8%
90 Day-33.3%1.2%6.0%
1 Year-53.3%-53.3%-16.7%-18.5%7.3%3.5%
3 Yearn/a-26.0%-30.4%23.3%10.8%
5 Yearn/a-18.0%-25.2%19.2%-0.7%

Price Volatility Vs. Market

How volatile is RMH Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is RMH Holdings 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: 8437 (HK$0.16) is trading below our estimate of fair value (HK$0.3)

Significantly Below Fair Value: 8437 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8437 is good value based on its PE Ratio (15.9x) compared to the Healthcare industry average (16.5x).

PE vs Market: 8437 is poor value based on its PE Ratio (18.2x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8437's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8437 is good value based on its PB Ratio (1.1x) compared to the HK Healthcare industry average (1.4x).


Next Steps

Future Growth

How is RMH Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.3%

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 RMH 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.


Next Steps

Past Performance

How has RMH Holdings performed over the past 5 years?

-24.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8437 has high quality earnings.

Growing Profit Margin: 8437's current net profit margins (13.1%) are higher than last year (10.4%).


Past Earnings Growth Analysis

Earnings Trend: 8437's earnings have declined by -24% per year over the past 5 years.

Accelerating Growth: 8437's earnings growth over the past year (20.6%) exceeds its 5-year average (-24% per year).

Earnings vs Industry: 8437 earnings growth over the past year (20.6%) exceeded the Healthcare industry 10.4%.


Return on Equity

High ROE: 8437's Return on Equity (6.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is RMH Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8437's short term assets (SGD14.1M) exceed its short term liabilities (SGD1.7M).

Long Term Liabilities: 8437's short term assets (SGD14.1M) exceed its long term liabilities (SGD871.0K).


Debt to Equity History and Analysis

Debt Level: 8437 is debt free.

Reducing Debt: 8437 had no debt 5 years ago.

Debt Coverage: 8437 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 8437 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 8437 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 8437's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.1%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 8437's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8437'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 8437's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8437's dividend payments have been increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 8437's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of RMH Holdings's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Raymond Kwah (43yo)

2.7yrs

Tenure

S$312,000

Compensation

Dr. Kwah Yung Chien, also known as Raymond, has been the Chief Executive Officer and Executive Director of RMH Holdings Limited since May 18, 2017 and March 22, 2017 respectively. Dr. Kwah is responsible f ...


CEO Compensation Analysis

Compensation vs Market: Raymond's total compensation ($USD231.64K) is about average for companies of similar size in the Hong Kong market ($USD228.16K).

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


Management Age and Tenure

2.7yrs

Average Tenure

42yo

Average Age

Experienced Management: 8437's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

44.5yo

Average Age

Experienced Board: 8437's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Yun Wah Man (36yo)

    Company Secretary

    • Tenure: 2.7yrs
  • Teck Hiong Loh (49yo)

    Chairman & Compliance Officer

    • Tenure: 2.7yrs
    • Compensation: S$312.00k
  • Hock Leong Ee (46yo)

    Executive Director

    • Tenure: 2.8yrs
    • Compensation: S$312.00k
  • Raymond Kwah (43yo)

    CEO & Executive Director

    • Tenure: 2.7yrs
    • Compensation: S$312.00k
  • Sun Yangling Swee (41yo)

    Operations Manager

    • Shally Ang (28yo)

      Chief Financial Officer

      • Tenure: 1yrs

    Board Members

    • Vincent Cheung (43yo)

      Independent Non Executive Director

      • Tenure: 2.3yrs
      • Compensation: S$21.00k
    • Joshua Ong (51yo)

      Independent Non Executive Director

      • Tenure: 2.3yrs
      • Compensation: S$31.00k
    • Teck Hiong Loh (49yo)

      Chairman & Compliance Officer

      • Tenure: 2.7yrs
      • Compensation: S$312.00k
    • Hock Leong Ee (46yo)

      Executive Director

      • Tenure: 2.8yrs
      • Compensation: S$312.00k
    • Raymond Kwah (43yo)

      CEO & Executive Director

      • Tenure: 2.7yrs
      • Compensation: S$312.00k
    • Ning Wang (41yo)

      Independent Non-Executive Director

      • Tenure: 1.6yrs
      • Compensation: S$12.00k

    Company Information

    RMH Holdings Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: RMH Holdings Limited
    • Ticker: 8437
    • Exchange: SEHK
    • Founded: 2017
    • Industry: Health Care Services
    • Sector: Healthcare
    • Market Cap: HK$84.000m
    • Shares outstanding: 600.00m
    • Website: https://www.rmhholdings.com.sg

    Number of Employees


    Location

    • RMH Holdings Limited
    • No 15-09 Paragon (Office Tower)
    • 290 Orchard Road
    • Singapore
    • 238859
    • Singapore

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    8437SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2017

    Biography

    RMH Holdings Limited, an investment holding company, provides dermatology treatment solutions in Singapore. It offers specialty care services for various dermatological conditions affecting skin, hair, and nails through medical, surgical, laser, and aesthetic treatments. The company also provides consultancy, prescription and dispensing, and treatment services. It offers treatment of skin cancer; and skin diseases, such as eczema, psoriasis, acne, pigmentation, adverse drug reactions, and warts. The company operates three clinics at Orchard Road, Raffles Place, and East Coast. The company was incorporated in 2017 and is headquartered in Singapore. RMH Holdings Limited is a subsidiary of Brisk Success Holdings Limited. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/23 13:07
    End of Day Share Price2020/01/22 00:00
    Earnings2019/09/30
    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.