NEWS BITES ASIAN MARKETS
Town Health International Investments Ltd. (HK:03886), Hong Kong's 5th largest health care company by market capitalisation, dropped 3.0c (or 4.9%) over the past two trading days, after falling 1.6% on Monday and 3.3% on Tuesday to close at 58.0c. Compared with the Hang Seng Index, which fell 165.5 points (or 0.7%) on the day, this was a relative price change of -2.6%.
Bearish Signals
- The present value of HKD1,000 (PV$1000) invested one year ago is HKD574, for a capital loss of HKD426.
PV$1000 | 1-week | 1-month | 1-year |
03886.HK | 1,036 | 1,055 | 574 |
Hang Seng Index | 1,015 | 986 | 1,128 |
Description | Value | Rank In Market |
Price Change % | -3.3 | In Bottom Quartile |
Return on Equity [ROE] % | 4.0 | In Bottom Quartile |
Bullish Signals
Fundamental measures by comparison with the sector average [in brackets] indicate Undervaluation:
- Price/Earnings of 8.6 [22.4].
- Price/Sales of 0.5 [3.4].
- Price to Book of 0.4 [1.6]. We estimate the shares are trading at a current year Price to Book of 0.3 and a forward year Price to Book of 0.2.
- Return on Equity 4.0% [3.3%].
- Return on Assets 3.4% [2.3%].
- Return on Capital Employed 7.5% [4.6%].
Other Bullish Signals:
- Total Liabilities/EBITDA of 1.7 is comfortably below 5, this compares favourably with the Joseph Piotroski benchmark of 5.
- The P/E of 8.6 multiplied by the P/NTA of 0.4 is 3.0. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.
- Interest cover defined by EBIT/I is 70.4 times. This indicates it is less leveraged.
- Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.3. Compared with the rest of the market the stock is undervalued.
Description | Value | Rank In Market |
Price to Book Value | 0.4 | In Top Quartile |
P/E * P/NTA | 3.01 | In Top Quartile |
Interest Cover | 70.4 | In Top Quartile |
Price to Sales | 0.5 | In Top Quartile |
Note
Volume: there were 60,000 shares worth HKD34,800 (US$4,485.7) traded. The volume was 0.04 times the average trading of 1.5 million shares.
- It is at a discount of 42.6% to the 12-month high of HKD1.01 on 12 Mar, 2012. It is also at a premium of 41.5% to the 12-month low of 41.0c on 08 Oct, 2012.
COMPANY ANNOUNCEMENTS
The last 7 company announcements are:
March 06: Town Health International Investments: Monthly Return for the month ended 28 February 2013 (Revised)
[News Story] http://www.buysellsignals.net/BuySellSignals/report/Hongkong/Stock/News/267844.pdf Source: HongKong Stock Exchange
March 06: Town Health International Investments: Monthly Return for the month ended 28 February 2013
[News Story] http://www.buysellsignals.net/BuySellSignals/report/Hongkong/Stock/News/267853.pdf Source: HongKong Stock Exchange
March 05: Town Health International Investments: Addendum To The Memorandum of Understanding In Relation To The Possible Sale and Purchase of Equity Interests In Luck Key
http://www.buysellsignals.net/BuySellSignals/report/Hongkong/Stock/News/267463.pdf Source: HongKong Stock Exchange
February 28: Town Health International Investments: Discloseable Transaction In Relation To Disposal of 50% Interest In The Target
[News Story] http://www.buysellsignals.net/BuySellSignals/report/Hongkong/Stock/News/266022.pdf Source: HongKong Stock Exchange
February 20: Town Health International Investments: Memorandum of Understanding In Relation To The Possible Disposal of 48% Equity Interests In Target Company
[News Story] http://www.buysellsignals.net/BuySellSignals/report/Hongkong/Stock/News/265385.pdf Source: HongKong Stock Exchange
February 15: Town Health International Investments: Major Transaction and Connected Transaction - Acquisition of Property
[News Story] http://www.buysellsignals.net/BuySellSignals/report/Hongkong/Stock/News/265053.pdf Source: HongKong Stock Exchange
February 08: Town Health International Investments: Profit Warning
[News Story] http://www.buysellsignals.net/BuySellSignals/report/Hongkong/Stock/News/264822.pdf Source: HongKong Stock Exchange
ISIN: BMG8979R1034
HK:03886;
Source: www.BuySellSignals.com
