Kangji Medical Holdings Limited

SEHK:9997 Stock Report

Market Cap: HK$8.1b

Kangji Medical Holdings Valuation

Is 9997 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 9997 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 9997 (HK$6.46) is trading below our estimate of fair value (HK$10.46)

Significantly Below Fair Value: 9997 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 9997?

Key metric: As 9997 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 9997. This is calculated by dividing 9997's market cap by their current earnings.
What is 9997's PE Ratio?
PE Ratio13.6x
EarningsCN¥534.41m
Market CapCN¥7.50b

Price to Earnings Ratio vs Peers

How does 9997's PE Ratio compare to its peers?

The above table shows the PE ratio for 9997 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15x
2276 Shanghai Conant Optical
13.6x16.5%HK$5.6b
1501 Shanghai INT Medical Instruments
26.8x27.2%HK$4.8b
1763 China Isotope & Radiation
8xn/aHK$3.5b
6929 OrbusNeich Medical Group Holdings
11.6x-3.1%HK$3.5b
9997 Kangji Medical Holdings
13.6x12.1%HK$8.1b

Price-To-Earnings vs Peers: 9997 is good value based on its Price-To-Earnings Ratio (13.6x) compared to the peer average (15x).


Price to Earnings Ratio vs Industry

How does 9997's PE Ratio compare vs other companies in the HK Medical Equipment Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
2393 Yestar Healthcare Holdings
0.1xn/aUS$21.90m
No more companies available in this PE range
9997 13.6xIndustry Avg. 15.1xNo. of Companies5PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 9997 is good value based on its Price-To-Earnings Ratio (13.6x) compared to the Hong Kong Medical Equipment industry average (15.1x).


Price to Earnings Ratio vs Fair Ratio

What is 9997'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.

9997 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.6x
Fair PE Ratio12.8x

Price-To-Earnings vs Fair Ratio: 9997 is expensive based on its Price-To-Earnings Ratio (13.6x) compared to the estimated Fair Price-To-Earnings Ratio (12.8x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 9997 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$6.46
HK$8.44
+30.7%
14.9%HK$9.70HK$7.19n/a2
Dec ’25HK$5.96
HK$8.44
+41.7%
14.9%HK$9.70HK$7.19n/a2
Nov ’25HK$5.90
HK$8.75
+48.3%
16.5%HK$10.20HK$7.30n/a2
Oct ’25HK$6.04
HK$8.75
+44.8%
16.5%HK$10.20HK$7.30n/a2
Sep ’25HK$5.79
HK$8.75
+51.1%
16.5%HK$10.20HK$7.30n/a2
Aug ’25HK$5.74
HK$9.73
+69.5%
8.9%HK$10.60HK$8.86n/a2
Jul ’25HK$5.58
HK$10.02
+79.5%
11.2%HK$11.14HK$8.90n/a2
Jun ’25HK$6.02
HK$10.02
+66.4%
11.2%HK$11.14HK$8.90n/a2
May ’25HK$7.25
HK$10.05
+38.6%
11.4%HK$11.20HK$8.90n/a2
Apr ’25HK$6.76
HK$10.05
+48.7%
11.4%HK$11.20HK$8.90n/a2
Mar ’25HK$6.66
HK$10.36
+55.6%
14.2%HK$11.83HK$8.90n/a2
Feb ’25HK$5.90
HK$10.36
+75.7%
14.2%HK$11.83HK$8.90n/a2
Jan ’25HK$6.99
HK$10.34
+47.9%
13.1%HK$11.70HK$8.98n/a2
Dec ’24HK$7.36
HK$10.34
+40.5%
13.1%HK$11.70HK$8.98HK$5.962
Nov ’24HK$6.26
HK$10.37
+65.6%
14.8%HK$11.90HK$8.83HK$5.902
Oct ’24HK$6.74
HK$10.37
+53.8%
14.8%HK$11.90HK$8.83HK$6.042
Sep ’24HK$6.93
HK$10.60
+52.9%
16.0%HK$12.30HK$8.90HK$5.792
Aug ’24HK$8.33
HK$12.36
+48.4%
13.3%HK$14.00HK$10.72HK$5.742
Jul ’24HK$8.31
HK$12.36
+48.7%
13.3%HK$14.00HK$10.72HK$5.582
Jun ’24HK$8.50
HK$12.36
+45.4%
13.3%HK$14.00HK$10.72HK$6.022
May ’24HK$9.87
HK$12.33
+24.9%
10.9%HK$13.68HK$10.98HK$7.252
Apr ’24HK$9.59
HK$12.69
+32.3%
9.5%HK$13.70HK$11.00HK$6.763
Mar ’24HK$9.58
HK$12.13
+26.6%
13.4%HK$13.31HK$9.83HK$6.663
Feb ’24HK$9.60
HK$8.81
-8.2%
13.7%HK$10.02HK$7.60HK$5.902
Jan ’24HK$8.10
HK$7.86
-3.0%
3.3%HK$8.12HK$7.60HK$6.992
Dec ’23HK$7.92
HK$7.86
-0.8%
3.3%HK$8.12HK$7.60HK$7.362

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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