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>
<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> results showed 7% revenue growth and 10% YoY profit (27% YoY adjusted profit for subsidies) growth in H1 FY24.</li>
<li>The company declared a 14.2 cent/share interim dividend. H2 dividends usually are higher, so we expect a 32-35 cent dividend for FY24. </li>
<li>This is another dividend-yielding gem, trading at 12.0x PE FY24e, a 9% dividend yield, and 15% of the market cap in cash and investments with a &gt;50% ROE. </li>
</ul>



Perfect Medical Health (1830 HK) results showed 7% revenue growth and 10% YoY profit (27% YoY adjusted profit for subsidies) growth in H1 FY24.
The company declared a 14.2 cent/share interim dividend. H2 dividends usually are higher, so we expect a 32-35 cent dividend for FY24. 
This is another dividend-yielding gem, trading at 12.0x PE FY24e, a 9% dividend yield, and 15% of the market cap in cash and investments with a &gt;50% ROE. 


Perfect Medical H1 FY24: Rebound of Growth in H2 FY24, 9% Div Yield, New High ROIC Investment

Value Investing in Asia, Oriental Value

Oriental Value

Value Investing in Asia

<ul><li>The beauty industry is typically characterized as a small-scale, relationship-driven business.</li><li>Barrier to entry is low, but a few groups have successfully tapped the capital market and achieved a certain scale in order to provide delicate medical beauty treatments, where trust by the customers is essential.</li><li>They have harnessed the societal obsession with a particular standard of beauty, amplified by the influence of social media and advertisements, and have reaped substantial profits.</li></ul>

The beauty industry is typically characterized as a small-scale, relationship-driven business.Barrier to entry is low, but a few groups have successfully tapped the capital market and achieved a certain scale in order to provide delicate medical beauty treatments, where trust by the customers is essential.They have harnessed the societal obsession with a particular standard of beauty, amplified by the influence of social media and advertisements, and have reaped substantial profits.

Perfect Medical - 1830 HK - Beauty Is Money

<ul>
<li>Negative China sentiment from where <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> derives about 15-20% of its revenue is causing the company's share price performance to remain lackluster. </li>
<li>Stock trades on a 10% dividend yield with 15% of the market capitalization in cash, despite the outlook for HK, where it derives &gt;75% of its revenue, is slightly better.</li>
<li>With a 10-year average ROE of the business &gt;40% and a 10.8x PE for FY24e, this stock is a dividend gem worth exploring. </li>
</ul>


Negative China sentiment from where Perfect Medical Health (1830 HK) derives about 15-20% of its revenue is causing the company's share price performance to remain lackluster. 
Stock trades on a 10% dividend yield with 15% of the market capitalization in cash, despite the outlook for HK, where it derives &gt;75% of its revenue, is slightly better.
With a 10-year average ROE of the business &gt;40% and a 10.8x PE for FY24e, this stock is a dividend gem worth exploring. 


Perfect Medical: Updates, Stock at 10% Dividend Yield Post Correction

<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

Hong Kong

The Cross-Harbour (Holdings) Limited, through its subsidiaries, operates a driver training center, tunnel, and electronic tolls. The Company also provides treasury services.

Hope Education Group Co, Ltd. offers educational services. The Company provides educational training, knowledge point sharing, activities arrangement, and other services. Hope Education Group offers its services throughout China.

Water Oasis Group Limited distributes exclusively ~H2O+ brand skin-care products in Hong Kong, Macau, Taiwan and China. The Company also operates spa centers under the Oasis Spa, Oasis Beauty, and Oasis Beauty Homme brand names.

Anxian Yuan China Holdings Limited is a holding company. The Company, through its subsidiaries, operates cemetary business.

Green International Holdings Limited manufactures and trades toys and recreational products. The Company's product categories include hard and electronic toys for children, educational and recreational, soft toys, and sports products.

SDM Group Holdings Limited, through its subsidiaries, operates dance institutions for children in Hong Kong. The Company's schools offer courses in jazz, ballet, hip-hop and latin dance.

Steve Leung Design Group Limited provides interior designing services. The Company offers apartments, restaurants, and hotels interior designing services . Steve Leung Design Group provides services worldwide.

Sun International Group Limited offers equine services. The Company provides horse breeding, horse trading, horse raising, and other services. Sun International Group also operates futures trading, enterprise placement, financial credit financing, asset management, and other businesses.

Regal Hotels International Holdings Limited owns and operates hotels.  The Company also manages and invests in real estate properties as well as invests in and trades financial instruments and marketable securities.  In addition, Regal hotel operates brewery, operates restaurants, and provides travel and florist and wedding services.

Cafe De Coral Holdings Limited, through its subsidiaries, operates quick service restaurants, fast casual dining, institutional catering and specialty restaurant chains, and food manufacturing business.

Carriage Services, Inc. operates funeral homes and cemeteries in the United States.  The Company provides a complete range of services relating to funerals, burials, and cremations.  Carriage also sells related products and merchandise such as caskets, burial vaults, garments, and memorials.

Shanghai Xin Nanyang Co., Ltd., through its subsidiaries, manufactures communication products and industrial equipment, develops cable TV network, security trading, and communication systems, provides network integration, education, and precision processing services.

China Kepei Education Group Limited provides educational services. The Company offers high-quality profession-oriented education services and other services. China Kepei Education Group provides services in China.

Chegg, Inc. provides online educational platform. The Company offers homework help, course selection, note taking, manuals, and textbook rentals services. Chegg serves customers throughout the United States.

American Public Education Inc. provides online postsecondary education directed at the needs of the military and public service communities.  The Company offers a wide range of degree programs and certificate programs including national security, military studies, intelligence, homeland security, criminal justice, technology, business administration and liberal arts.

PIA CORPORATION provides event ticketing services in Japan.  The Company sells tickets for concerts, sporting contests, and other events of entertainment value through telephone operators, mobile phone services, and a network of ticket stores.  Pia also operates in entertainment publishing and information distribution services.

Nagase Brothers Inc. operates cram schools mainly in Tokyo metropolitan area. The Company offers educational services for elementary, junior high, and high school students.  Nagase Brothers also offers educational services via satellite.

JP-HOLDINGS, INC. is a Japan-based company that provides child-care centers. The Company provides food catering services for child-care centers. JP-HOLDINGS also offers English language Classes and Gymnastics Classes

AcadeMedia AB provides educational services. The Company offers pre-school, elementary, secondary, vocational, adult education, comprehensive lesson plans, skills training, and professional rehabilitation services. AcadeMedia operates throughout Sweden.

Propel Funeral Partners Limited provides funeral services. The Company owns and operates funeral homes, cemeteries, crematoria, and related assets, as well as offers funeral, cremation, burial, and mortuary services. Propel Funeral Partners serves individuals and families in Australia and New Zealand.

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 H1 FY24: Rebound of Growth in H2 FY24, 9% Div Yield, New High ROIC Investment

Perfect Medical 1830 HK is a dividend-yielding gem, trading at 12.0x PE FY24e, with a 9% dividend yield and 15% of the market cap in cash and...

Sameer Taneja

Perfect Medical - 1830 HK - Beauty Is Money

The beauty industry is typically characterized as a small-scale, relationship-driven business. Barrier to entry is low, but a few groups have...

Oriental Value

Perfect Medical: Updates, Stock at 10% Dividend Yield Post Correction

We provide updates on Perfect Medical for Q3 2024 after the commencement of its Goku JV and its going ex-dividend, where the stock trades at an...

Sameer Taneja

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

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