Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

Perfect Medical Health Management / Equity Bottom-Up

Perfect Medical Health Management (1830 HK)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/perfect-medical-health-management" target="_blank" data-smartkarma-citation="entities:3639:1" rel="noopener">Perfect Medical Health (1830 HK)</a> released an operating update during market hours (<em>see: <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2023/0309/2023030900151.pdf" target="_blank" rel="noopener">Operations Update</a></em>) that signaled China has turned around to almost normalized (pre-covid) revenues. </li>
<li>While Feb is very late in the financial year (March End FY), and data turning around now does not move the needle for FY23e, it bodes well for FY24e profits. </li>
<li>The stock trades at 14.7x/11.5x FY23e/24e PE(x) with a 7.2%/9.2% FY23e/FY24e dividend yield with net cash and LT investments at 14% of market cap), making this an exciting investment.</li>
</ul>



Perfect Medical Health (1830 HK) released an operating update during market hours (see: Operations Update) that signaled China has turned around to almost normalized (pre-covid) revenues. 
While Feb is very late in the financial year (March End FY), and data turning around now does not move the needle for FY23e, it bodes well for FY24e profits. 
The stock trades at 14.7x/11.5x FY23e/24e PE(x) with a 7.2%/9.2% FY23e/FY24e dividend yield with net cash and LT investments at 14% of market cap), making this an exciting investment.


Perfect Medical: China Operations Update, Suggests 100% Upside From Here

<ul>
<li>A correction in <a href="https://www.smartkarma.com/entities/perfect-medical-health-management" target="_blank" data-smartkarma-citation="entities:3639:1" rel="noopener">Perfect Medical Health's (1830 HK)</a> share price recently has led to it trading at a decent multiple of 15.2x/11.6x FY23e/24e PE(x) with a 6.9%/9.1% FY23e/24e dividend yield. </li>
<li>We estimate the lockdowns in China from Oct-Dec last year will impact the H2 FY23 result, leading to softer revenue growth of 4.8% for FY23 (profit 11% YoY). </li>
<li>We are optimistic about China re-opening and cross-border travel and believe that &gt;20% revenue growth can materialize in FY24, led by a recovery in China/HK revenue. </li>
</ul>


A correction in Perfect Medical Health's (1830 HK) share price recently has led to it trading at a decent multiple of 15.2x/11.6x FY23e/24e PE(x) with a 6.9%/9.1% FY23e/24e dividend yield. 
We estimate the lockdowns in China from Oct-Dec last year will impact the H2 FY23 result, leading to softer revenue growth of 4.8% for FY23 (profit 11% YoY). 
We are optimistic about China re-opening and cross-border travel and believe that &gt;20% revenue growth can materialize in FY24, led by a recovery in China/HK revenue. 


Perfect Medical: Calm Start to the Year, Correction Provides Good Entry Point

<ul>
<li>China ( &gt;20% of revenue ) changing its stance on COVID provides <a href="https://www.smartkarma.com/entities/perfect-medical-health-management" target="_blank" data-smartkarma-citation="entities:3639:1" rel="noopener">Perfect Medical Health (1830 HK)</a> with an opportunity to crystallize its expansion plans there. </li>
<li>The border reopening between HK/China will provide a boost to its HK operations (&gt;70% of revenue). The second half of H1 2023 results reflect an improving revenue trend for HK.</li>
<li>The stock trades at 16x/11x FY23e/24e with ~15% of the market cap in cash and a dividend yield of 6.5%/9.5% FY23e/24e (based on ~100% payout ratio). </li>
</ul>


China ( &gt;20% of revenue ) changing its stance on COVID provides Perfect Medical Health (1830 HK) with an opportunity to crystallize its expansion plans there. 
The border reopening between HK/China will provide a boost to its HK operations (&gt;70% of revenue). The second half of H1 2023 results reflect an improving revenue trend for HK.
The stock trades at 16x/11x FY23e/24e with ~15% of the market cap in cash and a dividend yield of 6.5%/9.5% FY23e/24e (based on ~100% payout ratio). 


Perfect Medical: Reopening in China to Provide a Boost, Rally to Sustain

<ul>
<li>FY22 results for <a href="https://www.smartkarma.com/entities/water-oasis-group-ltd" target="_blank" data-smartkarma-citation="entities:17348:1" rel="noopener">Water Oasis (1161 HK)</a> were very encouraging, with significant HoH improvement from 26 mn HKD to 70 mn HKD (excluding a 33 mn HKD one-off).</li>
<li>With only 5 out of 6 operational months for H2 FY22, we see a significant improvement in H1 FY23 if HK should remain operational for all six months. </li>
<li>With the reinstatement of dividends as financial conditions improve, the stock trades at 5.2x FY23 PE with a &gt;15% dividend yield conservatively and 25% of the market cap in cash.</li>
</ul>


FY22 results for Water Oasis (1161 HK) were very encouraging, with significant HoH improvement from 26 mn HKD to 70 mn HKD (excluding a 33 mn HKD one-off).
With only 5 out of 6 operational months for H2 FY22, we see a significant improvement in H1 FY23 if HK should remain operational for all six months. 
With the reinstatement of dividends as financial conditions improve, the stock trades at 5.2x FY23 PE with a &gt;15% dividend yield conservatively and 25% of the market cap in cash.


Water Oasis: 5.2x FY23 PE with >15% Div Yield and 25% of the Mkt Cap in Cash

Global Healthcare Analyst

Tina Banerjee

Equity Capital Markets

Beauty Farm Medical and Health Industry / Equity Capital Markets

Beauty Farm Medical and Health Industry (BFM HK)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/beauty-farm-medical-and-health-industry-inc" target="_blank" data-smartkarma-citation="entities:35923:1" rel="noopener">Beauty Farm Medical and Health Industry (BFM HK)</a> is the largest provider of traditional beauty services and the fourth largest non-surgical aesthetic medical service provider in China.</li>
<li>The company seeks to raise $300 million from an IPO in Hong Kong market. Morgan Stanley, Haitong International, and Huatai International are the joint sponsors for the proposed IPO.</li>
<li>COVID-19 has hurt recent financial performance of the company and forced it to shut many of the stores in multiple locations. Further, stretched valuation make the IPO unappealing to investors.</li>
</ul>



Beauty Farm Medical and Health Industry (BFM HK) is the largest provider of traditional beauty services and the fourth largest non-surgical aesthetic medical service provider in China.
The company seeks to raise $300 million from an IPO in Hong Kong market. Morgan Stanley, Haitong International, and Huatai International are the joint sponsors for the proposed IPO.
COVID-19 has hurt recent financial performance of the company and forced it to shut many of the stores in multiple locations. Further, stretched valuation make the IPO unappealing to investors.


Beauty Farm Medical and Health Industry (BFM HK) IPO: Pandemic Blemishes Near-Term Growth Prospect

Hong Kong

Perfect Medical Health Management is an investment holding company primarily engaged in providing medical health and medical beauty services. The company offers a comprehensive range of non-invasive medical and aesthetic services, including personalized medical aesthetic solutions, hair growth treatments, pain management, preventive care, and reproductive medical services. It operates across Hong Kong, Macau, Mainland China, Australia, and Singapore. The company was incorporated on March 11, 2011, and is headquartered in Hong Kong.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Perfect Medical Health Management (1830 HK)

Perfect Medical: China Operations Update, Suggests 100% Upside From Here

The stock trades at 14.7x/11.5x FY23e/24e PE(x) with a 7.2%/9.2% FY23e/FY24e dividend yield with net cash and LT investments at 14% of market cap),...

Sameer Taneja

Perfect Medical: Calm Start to the Year, Correction Provides Good Entry Point

A correction in Perfect Medical Health's (1830 HK) share price recently has led to it trading at a decent multiple of 15.2x/11.6x FY23e/24e PE(x)...

Sameer Taneja

Perfect Medical: Reopening in China to Provide a Boost, Rally to Sustain

Perfect Medical trades at 16x/11x FY23e/24e ~15% of the market cap in cash and a div yield of 6.5%/9.5% FY23e/24e (based on ~100% payout ratio). We...

Sameer Taneja

Water Oasis: 5.2x FY23 PE with >15% Div Yield and 25% of the Mkt Cap in Cash

Water Oasis is a recovery play on HK beauty services; the stock trades at 5.2x FY23 PE with a >15% dividend yield conservatively and 25% of the...

Sameer Taneja

Beauty Farm Medical and Health Industry (BFM HK) IPO: Pandemic Blemishes Near-Term Growth Prospect

The company aims to raise ~$300M by listing on the HKEX. However, the pandemic has took a toll on the company’s recent financial performance in...

Tina Banerjee

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)