China's Genertec Universal Medical H1 revenue falls on healthcare, advisory weakness
China's Genertec Universal Medical H1 revenue falls on healthcare, advisory weakness
Overview
China healthcare services provider's half-year revenue decreased 6.3% yr/yr
Profit attributable to owners of parent rose 2.8% yr/yr
Diluted EPS for half-year increased to RMB0.63 from RMB0.62
Outlook
Company did not provide specific financial guidance or outlook for future periods
Result Drivers
REVENUE DECLINE - Integrated-healthcare revenue fell 9.1% and profit declined 23.6%, reflecting industry reforms and higher depreciation, amortization and labor costs
ADVISORY BUSINESS SCALE-DOWN – Finance-business revenue fell 12.5%, as advisory-services income dropped 82.6% following a strategic reduction in operations
FINANCE COST OPTIMIZATION – Finance-business profit rose 4.3% as lower funding costs lifted net interest margin to 4.42% from 4.34%
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| RMB 7.10 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the healthcare facilities & services peer group is "buy."
Wall Street's median 12-month price target for Genertec Universal Medical Group Co Ltd is HK$6.70, about 42.3% above its August 26 closing price of HK$4.71
The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 4 three months ago
Reuters Recommended Reads
Aug 25 - China's Hospital Corporation half-year profit drops on service revenue decline
Aug 25 - China's Weigao H1 profit falls 23% as price drops, competition hit margins
Aug 24 - China's Shanghai INT Medical Instruments H1 revenue jumps on acquisitions
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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