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2666 — Genertec Universal Medical News Story

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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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