Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

Perfect Medical Health / Equity Bottom-Up

<ul>
<li>We spoke with the management of <a href="https://www.smartkarma.com/entities/perfect-medical-health-management" target="_blank" data-smartkarma-citation="entities:3639:1" rel="noopener">Perfect Medical Health (1830 HK)</a>. The key highlight is a steady recovery for FY24e and an overall expansion of 60% in three years. </li>
<li>Expansion plans in HK (75% of revenue) have commenced, with ten centers opening over the year, adding to the existing 22 HK centers (one already opened in June 2023).</li>
<li>They also highlighted an aggressive long-term goal of making one bn HKD of profit by FY26 (Mkt cap: 4.8 bn HKD) and short-term guidance of 30-40% profit growth for FY24e. </li>
</ul>


We spoke with the management of Perfect Medical Health (1830 HK). The key highlight is a steady recovery for FY24e and an overall expansion of 60% in three years. 
Expansion plans in HK (75% of revenue) have commenced, with ten centers opening over the year, adding to the existing 22 HK centers (one already opened in June 2023).
They also highlighted an aggressive long-term goal of making one bn HKD of profit by FY26 (Mkt cap: 4.8 bn HKD) and short-term guidance of 30-40% profit growth for FY24e. 


Perfect Medical Management FY23 Concall: Highlights Bright Outlook for FY24, Aggressive Expansion

<ul>
<li>We compile our selection of small and mid-cap names with our desired characteristics of high dividend yields, value, and margin of safety. </li>
<li>Post the interim results, we provide short updates on each company and links to our latest work on them. </li>
<li>Our top picks are <a href="https://www.smartkarma.com/entities/perfect-medical-health-management" target="_blank" data-smartkarma-citation="entities:3639:1" rel="noopener">Perfect Medical Health (1830 HK)</a>, <a href="https://www.smartkarma.com/entities/water-oasis-group-ltd" target="_blank" data-smartkarma-citation="entities:17348:1" rel="noopener">Water Oasis (1161 HK)</a>, <a href="https://www.smartkarma.com/entities/taste-gourmet-group-ltd" target="_blank" data-smartkarma-citation="entities:27339:1" rel="noopener">Taste Gourmet (8371 HK)</a>, <a href="https://www.smartkarma.com/entities/uchi-technologies-bhd" target="_blank" data-smartkarma-citation="entities:10723:1" rel="noopener">Uchi Technologies (UCHI MK)</a>, and <a href="https://www.smartkarma.com/entities/the-keepers-holdings-inc" target="_blank" data-smartkarma-citation="entities:23003:1" rel="noopener">The Keepers Holdings (KEEPR PM)</a>.</li>
</ul>


We compile our selection of small and mid-cap names with our desired characteristics of high dividend yields, value, and margin of safety. 
Post the interim results, we provide short updates on each company and links to our latest work on them. 
Our top picks are Perfect Medical Health (1830 HK), Water Oasis (1161 HK), Taste Gourmet (8371 HK), Uchi Technologies (UCHI MK), and The Keepers Holdings (KEEPR PM).


Shortlist Of High Conviction Ideas: Income, Value, and Margin of Safety

<ul>
<li>
<a href="https://www.smartkarma.com/entities/perfect-medical-health-management" target="_blank" data-smartkarma-citation="entities:3639:1" rel="noopener">Perfect Medical Health (1830 HK)</a> reported a steady earnings growth of 3.5% YoY for FY23 despite the interruption of operations in China.</li>
<li>Since its listing, the company has consistently maintained a ROCE of &gt;25%, with FY23 being no exception. Net cash and investments at 738 mn HKD represent 18% of market capitalization. </li>
<li>The company declared a final dividend of 17 cents (Full year dividend FY23: 30 HKD cents Vs. FY22: 25 cents), representing an 8% yield with a 118% payout ratio. </li>
</ul>



Perfect Medical Health (1830 HK) reported a steady earnings growth of 3.5% YoY for FY23 despite the interruption of operations in China.
Since its listing, the company has consistently maintained a ROCE of &gt;25%, with FY23 being no exception. Net cash and investments at 738 mn HKD represent 18% of market capitalization. 
The company declared a final dividend of 17 cents (Full year dividend FY23: 30 HKD cents Vs. FY22: 25 cents), representing an 8% yield with a 118% payout ratio. 


Perfect Medical 1830 HK: High Conviction (8% Div Yield, Improving Outlook)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/perfect-medical-health-management" target="_blank" data-smartkarma-citation="entities:3639:1" rel="noopener">Perfect Medical Health (1830 HK)</a> released an operating update during market hours (<em>see: <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2023/0309/2023030900151.pdf" target="_blank" rel="noopener">Operations Update</a></em>) that signaled China has turned around to almost normalized (pre-covid) revenues. </li>
<li>While Feb is very late in the financial year (March End FY), and data turning around now does not move the needle for FY23e, it bodes well for FY24e profits. </li>
<li>The stock trades at 14.7x/11.5x FY23e/24e PE(x) with a 7.2%/9.2% FY23e/FY24e dividend yield with net cash and LT investments at 14% of market cap), making this an exciting investment.</li>
</ul>



Perfect Medical Health (1830 HK) released an operating update during market hours (see: Operations Update) that signaled China has turned around to almost normalized (pre-covid) revenues. 
While Feb is very late in the financial year (March End FY), and data turning around now does not move the needle for FY23e, it bodes well for FY24e profits. 
The stock trades at 14.7x/11.5x FY23e/24e PE(x) with a 7.2%/9.2% FY23e/FY24e dividend yield with net cash and LT investments at 14% of market cap), making this an exciting investment.


Perfect Medical: China Operations Update, Suggests 100% Upside From Here

<ul>
<li>
<a href="https://www.smartkarma.com/entities/perfect-medical-health-management" target="_blank" data-smartkarma-citation="entities:3639:1" rel="noopener">Perfect Medical Health (1830 HK)</a> showed a resilient set of numbers for H1 2023, with profits down only 30% despite losing a month in HK and more in China.</li>
<li>With over 700 mn HKD in cash (18% of market capitalization), PE of 12.4x FY23e/8.5x FY24e, and dividend yields of 8.5%FY23e/12.4%FY24e it trades on an exciting yield/valuation.</li>
<li>Catalysts for the company include the reopening of China (&gt;20% of revenue), the recovery of HK(70% of revenue), and expansion into newer business lines and geographies.</li>
</ul>



Perfect Medical Health (1830 HK) showed a resilient set of numbers for H1 2023, with profits down only 30% despite losing a month in HK and more in China.
With over 700 mn HKD in cash (18% of market capitalization), PE of 12.4x FY23e/8.5x FY24e, and dividend yields of 8.5%FY23e/12.4%FY24e it trades on an exciting yield/valuation.
Catalysts for the company include the reopening of China (&gt;20% of revenue), the recovery of HK(70% of revenue), and expansion into newer business lines and geographies.


Perfect Medical: Double From Here, Recovery, 8% Div Yield, and 20+% CAGR Growth

Hong Kong

Perfect Medical Health Management (previously Perfect Shape Medical Limited) offers slimming and beauty treatments. The Company provides fat softens and dissolves services, laser freckle services, and other services. Perfect Shape Medical offers services in China.

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Perfect Medical Health (1830 HK)

Perfect Medical Management FY23 Concall: Highlights Bright Outlook for FY24, Aggressive Expansion

Highlights of our concall with Perfect Medical trading at a 10.8x FY24e PE valuation. Company is embarking on a expansion plan to increase centers...

Sameer Taneja

Shortlist Of High Conviction Ideas: Income, Value, and Margin of Safety

Post results we screen and filter our top picks are Perfect Medical Health (1830 HK), Water Oasis (1161 HK), Taste Gourmet (8371 HK), Uchi...

Sameer Taneja

Perfect Medical 1830 HK: High Conviction (8% Div Yield, Improving Outlook)

Perfect Medical trades at 14.8/10.8 FY23e/24e PE and a div yield of 8%/10.2%, FY23 results look encouraging, and we expect the company to guide...

Sameer Taneja

Perfect Medical: China Operations Update, Suggests 100% Upside From Here

The stock trades at 14.7x/11.5x FY23e/24e PE(x) with a 7.2%/9.2% FY23e/FY24e dividend yield with net cash and LT investments at 14% of market cap),...

Sameer Taneja

Perfect Medical: Double From Here, Recovery, 8% Div Yield, and 20+% CAGR Growth

With over 700 mn HKD in cash (18% of market capitalization), PE of 12.4x FY23e/8.5x FY24e, and dividend yields of 8.5%FY23e/12.4%FY24e Perfect...

Sameer Taneja

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