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

<ul>
<li>UMP Healthcare ("UMP") is Hong Kong's leading private medical service network. Its network spans 1100+ service providers, 1mm+ scheme members, 2000+ contract customers, and over 1.13mm+ annual clinic visits.</li>
<li>Despite the consistent track record, UMP trades at a 61% discount to its IPO price, 6x PE, and 8% yield with 45% of its market cap in net cash. </li>
<li>We see ingredients in place for a multi-year re-rate, backed by HK's new Healthcare Policy and the company's strategic tilt towards higher margin service lines supporting future profit growth.</li>
</ul>


UMP Healthcare ("UMP") is Hong Kong's leading private medical service network. Its network spans 1100+ service providers, 1mm+ scheme members, 2000+ contract customers, and over 1.13mm+ annual clinic visits.
Despite the consistent track record, UMP trades at a 61% discount to its IPO price, 6x PE, and 8% yield with 45% of its market cap in net cash. 
We see ingredients in place for a multi-year re-rate, backed by HK's new Healthcare Policy and the company's strategic tilt towards higher margin service lines supporting future profit growth.


UMP Healthcare: An Undervalued Gem with a Promising Future in Hong Kong's Healthcare Market

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ump-healthcare-holdings-ltd" target="_blank" data-smartkarma-citation="entities:21005:1" rel="noopener">UMP Healthcare (722 HK)</a> reported a Revenue/PAT growth of -1.2%/45.7% YoY as cost-cutting initiatives bore fruit for the company in H1 FY25. </li>
<li>Net cash and investments reached 294 mn HKD (representing 88% of the market capitalization) due to robust operating profits and excellent working capital control. </li>
<li>Trading at 7.7x PE and 0.4x EV-EBITDA, with an 8% dividend yield, there is massive value in the name. The key lies in improving ROCE, which remains low- single digit. </li>
</ul>



UMP Healthcare (722 HK) reported a Revenue/PAT growth of -1.2%/45.7% YoY as cost-cutting initiatives bore fruit for the company in H1 FY25. 
Net cash and investments reached 294 mn HKD (representing 88% of the market capitalization) due to robust operating profits and excellent working capital control. 
Trading at 7.7x PE and 0.4x EV-EBITDA, with an 8% dividend yield, there is massive value in the name. The key lies in improving ROCE, which remains low- single digit. 


UMP Healthcare (722 HK): Solid H1 2025, Cost-Cutting Initiatives Bearing Fruit

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Aug 5th based on HKEx daily reports.</li>
<li>In the past 7 days, the top 3 companies that repurchased the most shares from the market were Town Health International Medical (3886 HK), Neuedu (9616 HK), Sirnaomics-B (2257 HK).</li>
<li>In the past 30 days, the top 3 companies that repurchased the most shares from the market were Aia (1299 HK), Tencent (700 HK), Great Wall Motor (2333 HK).</li>
</ul>


We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Aug 5th based on HKEx daily reports.
In the past 7 days, the top 3 companies that repurchased the most shares from the market were Town Health International Medical (3886 HK), Neuedu (9616 HK), Sirnaomics-B (2257 HK).
In the past 30 days, the top 3 companies that repurchased the most shares from the market were Aia (1299 HK), Tencent (700 HK), Great Wall Motor (2333 HK).


Hong Kong Buybacks: Town Health, Neuedu, Sirnaomics

Transport Sector, China and Asia-focused Research

Charles De Trenck

Thematic (Sector/Industry)

This is an invest-able idea at the private level  with long term benefits. Both for the body, and for other ideas as well.Ever since I turned over a new leaf vis a vis health five plus years ago, I have explored active alternative health solutions. I have a long list of things I have solved and people I have seen gain real improvements from alternative treatments.  I have seen real growth in options to treatment of severe conditions.Most interesting perhaps has been learning about the benefits…

This is an invest-able idea at the private level  with long term benefits. Both for the body, and for other ideas as well.Ever since I turned over a new leaf vis a vis health five plus years ago, I have explored active alternative health solutions. I have a long list of things I have solved and people I have seen gain real improvements from alternative treatments.  I have seen real growth in options to treatment of severe conditions.Most interesting perhaps has been learning about the benefits…

Energy Medicine. Personal Experience. Impact. Growth in Asia. Ideas

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Equity Capital Markets

UMP Healthcare is a HK-based primary healthcare provider focused primarily on the corporate market. The company is expanding into the Mainland in Shanghai and through a JV with Phoenix Healthcare in Beijing. The proposed IPO will fund these expansion plans and potential acquisitions. Some elements of the business need further discussion (capitation risks in HK; ramp-up of new clinics in China), but the stability of the core business and the proposed valuation (HKD 1.90-2.20/share) make this a potentially interesting story. &nbsp; &nbsp;

UMP Healthcare is a HK-based primary healthcare provider focused primarily on the corporate market. The company is expanding into the Mainland in Shanghai and through a JV with Phoenix Healthcare in Beijing. The proposed IPO will fund these expansion plans and potential acquisitions. Some elements of the business need further discussion (capitation risks in HK; ramp-up of new clinics in China), but the stability of the core business and the proposed valuation (HKD 1.90-2.20/share) make this a potentially interesting story. &nbsp; &nbsp;

Hong Kong

Town Health International Medical Group Limited, through its subsidiaries, provides management services to medical and dental practitioners and licenses the Town Health Centre name.  The Company also provides healthcare and related services including general dental consultation services, paramedical services, operates health portals, and distributes health food products.

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Town Health International Me (3886 HK)

UMP Healthcare: An Undervalued Gem with a Promising Future in Hong Kong's Healthcare Market

UMP Healthcare is HK's leading private medical service network. Despite the impressive footprint and consistent track record, it trades at 6x PE...

Sameer Taneja

UMP Healthcare (722 HK): Solid H1 2025, Cost-Cutting Initiatives Bearing Fruit

UMP Medical's H1 FY25 results and management insights make the stock—trading at 7.7x PE, with an 88% market cap in cash and an 8% dividend yield—an...

Sameer Taneja

Hong Kong Buybacks: Town Health, Neuedu, Sirnaomics

Past 7 day buybacks in HK market were 92.7% lower wow. The top 3 companies in terms of buybacks were Town Health International Medical (3886 HK),...

Ke Yan, CFA, FRM

Energy Medicine. Personal Experience. Impact. Growth in Asia. Ideas

This is an invest-able idea at the private level with long term benefits. Both for the body, and for other ideas as well.Ever since I turned over...

Charles De Trenck

Aggressive China Ramp-Up the Big Risk

UMP Healthcare is a HK-based primary healthcare provider focused primarily on the corporate market. The company is expanding into the Mainland in...

Kemp Dolliver, CFA

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