SGX:588

Stock Analysis Report

Health Management International

Executive Summary

Health Management International Ltd, an investment holding company, provides private healthcare services in Singapore, Malaysia, and Indonesia.

Rewards

Trading at 25.7% below its fair value

Earnings are forecast to grow 13.35% per year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Health Management International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 588 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

588

-0.2%

SG Healthcare

-0.1%

SG Market


1 Year Return

31.8%

588

-12.7%

SG Healthcare

3.3%

SG Market

Return vs Industry: 588 exceeded the SG Healthcare industry which returned -12.7% over the past year.

Return vs Market: 588 exceeded the SG Market which returned 3.3% over the past year.


Shareholder returns

588IndustryMarket
7 Day0%-0.2%-0.1%
30 Day0%-3.4%-1.5%
90 Day0.7%-0.4%1.3%
1 Year32.6%31.8%-11.1%-12.7%7.5%3.3%
3 Year19.2%16.0%-18.7%-23.6%16.2%3.7%
5 Year193.4%184.3%-14.6%-23.2%13.3%-5.8%

Price Volatility Vs. Market

How volatile is Health Management International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Health Management International undervalued compared to its fair value and its price relative to the market?

25.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 588 (SGD0.73) is trading below our estimate of fair value (SGD0.98)

Significantly Below Fair Value: 588 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 588 is poor value based on its PE Ratio (32.4x) compared to the Healthcare industry average (27.1x).

PE vs Market: 588 is poor value based on its PE Ratio (32.4x) compared to the SG market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: 588 is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: 588 is overvalued based on its PB Ratio (6.1x) compared to the SG Healthcare industry average (2x).


Next Steps

Future Growth

How is Health Management International forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

13.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 588's forecast earnings growth (13.3% per year) is above the savings rate (1.8%).

Earnings vs Market: 588's earnings (13.3% per year) are forecast to grow faster than the SG market (6.4% per year).

High Growth Earnings: 588's earnings are forecast to grow, but not significantly.

Revenue vs Market: 588's revenue (7.4% per year) is forecast to grow faster than the SG market (5.5% per year).

High Growth Revenue: 588's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 588's Return on Equity is forecast to be low in 3 years time (18.9%).


Next Steps

Past Performance

How has Health Management International performed over the past 5 years?

24.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 588 has high quality earnings.

Growing Profit Margin: 588's current net profit margins (10.9%) are lower than last year (12.1%).


Past Earnings Growth Analysis

Earnings Trend: 588's earnings have grown significantly by 24.8% per year over the past 5 years.

Accelerating Growth: 588's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 588 had negative earnings growth (-0.3%) over the past year, making it difficult to compare to the Healthcare industry average (-9%).


Return on Equity

High ROE: 588's Return on Equity (16.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Health Management International's financial position?


Financial Position Analysis

Short Term Liabilities: 588's short term assets (MYR159.4M) exceed its short term liabilities (MYR141.7M).

Long Term Liabilities: 588's short term assets (MYR159.4M) do not cover its long term liabilities (MYR332.0M).


Debt to Equity History and Analysis

Debt Level: 588's debt to equity ratio (112.3%) is considered high.

Reducing Debt: 588's debt to equity ratio has increased from 29% to 112.3% over the past 5 years.

Debt Coverage: 588's debt is well covered by operating cash flow (33.6%).

Interest Coverage: 588's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet

Inventory Level: 588 has a high level of physical assets or inventory.

Debt Coverage by Assets: 588's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is Health Management International's current dividend yield, its reliability and sustainability?

0.95%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.5%markettop25%5.4%industryaverage3.0%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 588's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 588'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 588's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 588's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 588 is not paying a notable dividend for the SG market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 588's dividend in 3 years as they are not forecast to pay a notable one for the SG market.


Next Steps

Management

What is the CEO of Health Management International's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Wei Chin (41yo)

4.3yrs

Tenure

0

Ms. Wei Jia Chin has been Managing Director of Mahkota Medical Centre & Regency Specialist Hospital at Regency Specialist Hospital Sdn Bhd since March 24, 2016. Ms. Chin served as the Group Chief Executive ...


Management Age and Tenure

2.7yrs

Average Tenure

52.5yo

Average Age

Experienced Management: 588's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

5.2yrs

Average Tenure

70yo

Average Age

Experienced Board: 588's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellRM7,139,98124 Jul 19
Kabouter Management L.L.C.
EntityCompany
Shares10,000,000
Max PriceRM0.71

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • See Khem Gan (73yo)

    Executive Chairman & MD

    • Tenure: 20.9yrs
  • Serena Yong

    Chief People Officer

    • Tenure: 2.3yrs
  • Noraini Binte Mohamed Abdul Latiff

    Company Secretary

    • Tenure: 3.3yrs
  • Lee Yow (64yo)

    Chief Financial Officer

    • Tenure: 0.8yrs
  • Wei Chin (41yo)

    Group CEO & Executive Director

    • Tenure: 4.3yrs
  • Wei Shan Chin

    Group Marketing Manager

    • Tenure: 0yrs
  • May Tan

    Chief Financial Officer of Mahkota Medical Centre

    • Tenure: 9.9yrs
  • Horng Lim

    Financial Controller

    • Tenure: 3.2yrs
  • Wei Yao Chin (37yo)

    Chief Investment Officer & Executive Director

    • Tenure: 4.2yrs
  • Choo Khim Jean Ong

    Chief Development Officer

    • Tenure: 0.7yrs

Board Members

  • Chin Tan (70yo)

    Independent Non Executive Director

    • Tenure: 20.3yrs
  • See Khem Gan (73yo)

    Executive Chairman & MD

    • Tenure: 20.9yrs
  • Way Cheah (70yo)

    Independent Non Executive Director

    • Tenure: 20.3yrs
  • Wei Chin (41yo)

    Group CEO & Executive Director

    • Tenure: 4.3yrs
  • Wei Yao Chin (37yo)

    Chief Investment Officer & Executive Director

    • Tenure: 4.2yrs
  • Annie Koh

    Lead Independent Director

    • Tenure: 3.3yrs
  • Peter Chong

    Independent Non-Executive Director

    • Tenure: 2yrs

Company Information

Health Management International Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Health Management International Ltd
  • Ticker: 588
  • Exchange: SGX
  • Founded: 1991
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: S$607.070m
  • Shares outstanding: 837.34m
  • Website: https://www.hmi.com.sg

Number of Employees


Location

  • Health Management International Ltd
  • Suntec Tower One
  • No. 12-10, 7 Temasek Boulevard
  • Singapore
  • 38987
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
588SGX (Singapore Exchange)YesOrdinary SharesSGSGDOct 1999

Biography

Health Management International Ltd, an investment holding company, provides private healthcare services in Singapore, Malaysia, and Indonesia. It owns and operates Mahkota Medical Centre, a 340-bed tertia ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 12:38
End of Day Share Price2019/11/07 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


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.