by winston » Wed Jan 31, 2018 10:03 am
not vested
CRPHOENIXHEALTH(1515)
Analysis:
Speed Key, the second largest shareholder, sold all holdings during Jan 24th to 25th and the stock price sharply increased by 16.7% in two days.
We know from our checks that there is no significant change in fundamentals. As up to June 2017, the company achieved revenue of RMB862mn (+22.3%) and net profit excluding non-recurring profit or loss items of RMB193mn (+43%).
The company covers 108 medical institutions under investment, management or contractual arrangement, with approximately 11,885 beds in operation, widely spread over regions like Beijing, Anhui, and Hubei with huge population base.
CR Phoenix provides four types of services including general healthcare services, hospital management and consulting services, GPO business and other hospital-derived services, with GPM respectively 19.7%/92%/22.6%/67%.
As China has stepped into an aging society, we see increasing demand in healthcare market and expect the healthcare market to grow at CAGR 15% during 2016 to 2020E.
We highlight CR Phoenix`s SOE background and strong hospital network. We expect CR Group to input more quality healthcare assets into the listing company.
Strategy:
Buy-in Price: $11.46, Target Price: $15.00, Cut Loss Price: $10.50
Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"