NEWS BITES ASIAN MARKETS
Town Health International Investments Ltd. (HK:03886), Hong Kong's 5th largest health care company by market capitalisation, sank 3.0c (or 5.2%) to close at 55.0c. Compared with the Hang Seng Index, which fell 360.0 points (or 1.6%) on the day, this was a relative price change of -3.6%. The volume was 3.2 times the average trading of 1.5 million shares. The stock fell for a third day on Wednesday bringing its three-day fall to 6.0c or 9.8%.
Bearish Signals
Downtrend
- The stock dropped 5.2% on high volatility today.
- The present value of HKD1,000 (PV$1000) invested one year ago is HKD545, for a capital loss of HKD455.
PV$1000 | 1-week | 1-month | 1-year |
03886.HK | 965 | 1,000 | 545 |
Hang Seng Index | 991 | 971 | 1,100 |
Description | Value | Rank In Market |
MCap | US$64.5 million | In Bottom Quartile |
Return on Equity [ROE] % | 4.0 | In Bottom Quartile |
Price Change % | -5.2 | In Bottom 6% |
Bullish Signals
Fundamental measures by comparison with the sector average [in brackets] indicate Undervaluation:
- Price/Earnings of 8.2 [21.8].
- Price/Sales of 0.4 [3.3].
- Price to Book of 0.3 [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 8.2 multiplied by the P/NTA of 0.3 is 2.7. 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 | 0.3 | In Top Quartile |
P/E * P/NTA | 2.69 | In Top Quartile |
Interest Cover | 70.4 | In Top Quartile |
Price to Sales | 0.4 | In Top Quartile |
Note
Volume: there were 4,910,000 shares worth HKD2.7 million (US$348,094.4) traded.
- It is at a discount of 45.0% to the 12-month high of HKD1.0 on 27 Mar, 2012. It is also at a premium of 34.2% to the 12-month low of 41.0c on 08 Oct, 2012.
COMPANY ANNOUNCEMENTS
The last 7 company announcements are:
March 12: Town Health International Investments: Date of Board Meeting
[News Story] The board of directors (the "Board") of Town Health International Investments Limited (the "Company") announces that a meeting of the Board will be held on Friday, 22 March 2013 for the purpose of, among other matters, approving the final results of the Company and its subsidiaries for the year ended 31 December 2012 and considering the recommendation for payment of a final dividend, if any. Source: HongKong Stock Exchange
March 06: Town Health International Investments: Monthly Return for the month ended 28 February 2013 (Revised)
