Shanghai Kindly Medical Instruments Co., Ltd. Class H (1501) AI Stock Analysis

• Market Cap: HK$5.46B
• Dividend Yield: N/A
• Average Volume (3M): 29.01K
• Price to Earnings (P/E): 26.4
• Beta (1Y): -0.02
• Revenue Growth: 14.06%
• EPS Growth: 3.02%
• Country: HK
• Employees: 1,735
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.63
• Shares Outstanding: 104,213,394
• 10 Day Avg. Volume: 19,260
• 30 Day Avg. Volume: 29,013
• PEG Ratio: 1.05
• Price to Book (P/B): 2.67
• Price to Sales (P/S): 5.57
• P/FCF Ratio: 79.34
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: HK$34.00 ▲(16.04% Upside)

Shanghai Kindly Medical Instruments Co., Ltd. Class H has a strong financial foundation with robust revenue growth and profitability, supported by a solid balance sheet. However, technical indicators suggest mixed momentum, and valuation metrics indicate moderate pricing with limited dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

The company has shown consistent revenue growth, with a 13.15% increase from 2023 to 2024, indicating a strong market position and demand for its products.

Profitability Margins

High profitability margins reflect effective cost management and operational efficiency, contributing to sustainable financial health.

Balance Sheet Strength

A solid equity base and minimal leverage reduce financial risk, providing stability and flexibility for future growth opportunities.

Negative Factors

Cash Flow Challenges

Challenges in cash generation from operations could impact liquidity and limit the ability to fund new investments or manage debt.

Free Cash Flow Fluctuations

Inconsistent free cash flow generation may affect the company's ability to sustain operations and invest in growth without external financing.

Cash Flow Efficiency

Improving cash flow efficiency is crucial for maintaining financial health and supporting long-term strategic initiatives.

Shanghai Kindly Medical Instruments Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Shanghai Kindly Medical Instruments Co., Ltd. engages in the research and development, manufacture, and sale of cardiovascular interventional medical devices in Mainland China, Europe, the United States, and internationally. The company offers interventions products, which includes guiding catheter used to provide a channel for introducing balloon catheter, guidewire or other treatment devices; micro catheter to support the placement of guide wires; guidewire used in percutaneous transluminal angioplasty (PTA) surgical procedures; angiography catheter used to inject and infuse contrast media and fluid; and Y-connector pack used in PTCA surgery. It also provides inflation device used to inflate the balloon of dilating the vessel or placing the stent in the vessel; manifold for single use; manifold kit; pressure bandage used to assist compression hemostasis; angiography syringe for single use; stopcocks used for pressure monitoring tubing during surgery; sterile seldinger needle used to puncture into the artery; introducer set; pressure transducer for single use; extension tube for pressure monitoring; and introducer tool kit used in percutaneous vertebroplasty. In addition, the company offers medical accessories, such as check value, needle free connector, male Luer locks, bi-stopper, Heparian cap, flush device, and flow regulator; other products, including joint intervention kit, disposable respirator masks, vaginal dilator used during a vaginal examination, foley catheter, infusion pumps, disposable automatic umbilical cord clamps, infusion connector and accessory for single use, and burette infusion sets without a needle. It serves medical device manufacturers and other customers. The company was founded in 2006 and is headquartered in Shanghai, China. Shanghai Kindly Medical Instruments Co., Ltd. is a subsidiary of Shanghai Kindly Enterprise Development Group Co., Ltd.

How the Company Makes Money

The company generates revenue through the sale of its medical instruments and devices, which are distributed to healthcare facilities both domestically and internationally. Key revenue streams include direct sales of surgical instruments, medical consumables, and specialized healthcare solutions. Additionally, the company may engage in partnerships with healthcare institutions and distributors, which can enhance its market reach and sales volume. Factors contributing to its earnings include a robust product portfolio, continuous innovation, and compliance with international quality standards, which help to build trust and reliability in its offerings.

Shanghai Kindly Medical Instruments Co., Ltd. Class H Financial Statement Overview

Summary

Shanghai Kindly Medical Instruments Co., Ltd. Class H demonstrates strong financial performance with robust revenue growth and high profitability margins. The balance sheet is solid with low leverage and a strong equity base, reducing financial risk. However, cash flow shows room for improvement, indicating potential challenges in cash generation from operations.

Income Statement

Shanghai Kindly Medical Instruments Co., Ltd. Class H has demonstrated strong income statement performance with a consistent upward trajectory in revenue growth, showing an impressive revenue growth rate from 2023 to 2024 at 13.15%. Gross profit margin remains robust at approximately 63.11%, indicating effective cost management. The net profit margin also improved, reaching 22.53% in 2024, reflecting enhanced profitability. The company maintains healthy EBIT and EBITDA margins at 25.38% and 29.98%, respectively, showcasing operational efficiency. The key strength lies in sustained revenue growth and high profitability margins, although the company should monitor any future fluctuations in margins.

Balance Sheet

The balance sheet of Shanghai Kindly Medical Instruments Co., Ltd. Class H reveals a strong financial position with an equity ratio of 78.51% in 2024, indicating a solid equity base relative to total assets. The debt-to-equity ratio remains low at 0.14, suggesting minimal leverage and reduced financial risk. Return on equity improved to 10.82%, reflecting enhanced returns for shareholders. The company benefits from a strong equity position and low leverage, which contributes to financial stability and mitigates risk.

Cash Flow

Cash flow analysis for Shanghai Kindly Medical Instruments Co., Ltd. Class H shows areas for improvement. The operating cash flow to net income ratio is low due to operating cash flow being unavailable in 2024. Free cash flow remains a concern with fluctuations observed in prior years, indicating potential challenges in cash generation from operations. However, the company has managed to maintain a positive free cash flow in earlier periods, suggesting potential for recovery in cash flow generation. Focus should be placed on enhancing cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	920.71M	851.95M	752.84M	585.88M	464.68M	358.43M
Gross Profit	561.55M	537.66M	438.07M	332.49M	275.75M	234.41M
EBITDA	277.22M	255.43M	225.88M	159.99M	168.81M	143.23M
Net Income	189.90M	191.91M	156.46M	131.71M	142.96M	121.35M
Balance Sheet
Total Assets	2.88B	2.26B	2.03B	1.83B	1.62B	1.42B
Cash, Cash Equivalents and Short-Term Investments	505.05M	554.51M	434.40M	528.27M	640.55M	941.59M
Total Debt	569.86M	243.69M	94.78M	48.83M	13.40M	1.73M
Total Liabilities	917.75M	473.39M	351.25M	273.23M	183.63M	95.04M
Stockholders Equity	1.88B	1.77B	1.65B	1.51B	1.40B	1.31B
Cash Flow
Free Cash Flow	146.08M	59.80M	-53.05M	-62.75M	-205.07M	7.92M
Operating Cash Flow	243.39M	225.54M	178.15M	180.46M	72.76M	95.71M
Investing Cash Flow	-455.54M	-187.31M	-283.81M	-316.18M	-268.08M	-221.87M
Financing Cash Flow	360.65M	56.97M	8.06M	9.72M	-31.07M	-27.95M

Shanghai Kindly Medical Instruments Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.30
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1501, the sentiment is Positive. The current price of 29.3 is below the 20-day moving average (MA) of 30.50, below the 50-day MA of 30.38, and above the 200-day MA of 28.43, indicating a bullish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 56.58 is Neutral, neither overbought nor oversold. The STOCH value of 57.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1501.

Shanghai Kindly Medical Instruments Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1358	74 Outperform	HK$1.90B	12.32	3.76%	7.46%	21.39%	-0.57%
3600	74 Outperform	HK$4.93B	10.39	17.42%	3.65%	6.87%	18.37%
2276	72 Outperform	HK$26.13B	45.22	24.57%	0.63%	13.58%	24.59%
1501	70 Neutral	HK$5.46B	26.37	10.31%	―	14.06%	3.02%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
0876	50 Neutral	HK$468.92M	-15.00	―	―	-8.46%	45.13%

Shanghai Kindly Medical Instruments Co., Ltd. Class H Corporate Events

Shanghai Kindly Medical Instruments Proposes Full Circulation of H Shares

Shanghai Kindly Medical Instruments Co., Ltd. has announced its intention to implement full circulation of its H shares. The company has submitted a filing to the China Securities Regulatory Commission (CSRC) for the conversion of 71,786,608 domestic shares into H shares, which will then be listed and traded on the Hong Kong Stock Exchange. This move is part of the company’s strategy to enhance its market presence and liquidity. The conversion and listing are subject to regulatory approvals and compliance with applicable laws, and further announcements will be made as the process progresses.

The most recent analyst rating on (HK:1501) stock is a Hold with a HK$34.00 price target. To see the full list of analyst forecasts on Shanghai Kindly Medical Instruments Co., Ltd. Class H stock, see the HK:1501 Stock Forecast page.

Shanghai Kindly Medical Instruments to Acquire Significant Stake in Broncus Holding

Shanghai Kindly Medical Instruments Co., Ltd., a company incorporated in the People’s Republic of China, has entered into a Subscription Agreement with Broncus Holding Corporation. The agreement involves Shanghai Kindly subscribing to 91,093,613 new shares of Broncus at a price of HK$3.11 per share, totaling approximately HK$283.3 million. This transaction will result in Shanghai Kindly holding about 17.24% of Broncus’s issued shares. However, the financial results of Broncus will not be consolidated into Shanghai Kindly’s accounts. The transaction is classified as a discloseable transaction under the Listing Rules, requiring reporting and announcement due to the applicable percentage ratios.

The most recent analyst rating on (HK:1501) stock is a Buy with a HK$37.00 price target. To see the full list of analyst forecasts on Shanghai Kindly Medical Instruments Co., Ltd. Class H stock, see the HK:1501 Stock Forecast page.