“Health China” a Factor to Healthcare Shares Spurt; Major Shareholder Repeatedly Purchased Shares of
“Health China” strategy is imminent after “Wild China” was brought up. According to Shanghai Composite News, On the occasion of the fifth plenary session of the 18th Central Committee of the CPC, discussions on the proposals for 13th five-year plan become a hot-point in the market. It is known that “Health China” is likely written into the plan. In early September 2015, the National Health and Family Planning Commission of the People’s Republic of China has embarked on the compile of Health China construction plan (2016-2020).
According to analysts, with the Health China Strategy being carried out, universal healthcare, universal sanitation and universal healthcare industry is about to break through the market by 10 trillion. Medical and healthcare industry will take the lead of another turn in economic development, which is a contributory factor to the listed companies in medical care service followed by capital chasing.
At present, the share price of companies in universal healthcare, as Alihealth, Evergrande Health and etc. rose in Hong Kong stock market and drew investors attention. The companies at low market value, like Evergrande Health’s and China Jiuhao Health’s PEs approximately surge to 60 – 100 times. The enterprise at high market value such as China TCM’s and Bai Yunshan’s PEs are approximately in between 20 and 25. Universal Health’s PE is 11 with its sales performance up 25 percent in the first half of the year. The business clearly aimed on universal healthcare retail and wholesales, meanwhile, mobile E-commerce and Cross-border E-commerce are fastly developed. In the future, overseas branches and universal healthcare industry fund of investment and acquisition will be set up.
According to the open news, Mr. Jin Dongtao, chairman of Universal Health has repeatedly purchased the share of the company 6 times since September 2015, the value over 2600 million HKD. After such purchase. The shareholding of Mr. Jin in the Company increase to approximately 51.56% of the issued share capital and Universal Health shares gained over 30 percent. Jin Dongtao said that he is confident in the development of company’s international business, as well as in the prospect of healthcare industry. He will seek further opportunities to purchase additional shares based on the conditions of the capital market. In April, Mr. Jin Dongtao repurchased 40,000,000 shares of the company at 2.82 HKD with the total amount of approximately 113 million HKD. After such purchase, the company share rose over 70% in a month.
After Universal Health Interim Results Conference, Morgan Stanley, Everbright Securities are satisfied with company’s prospect and give the company a buying rate and target the price over 4.5 HKD.