HONG KONG, Sep 17, 2015 - (ACN Newswire) - Universal Health International Group Holding Limited ("UNI HEALTH"; stock code: 2211) announced that Mr. Jin Dongtao, Chairman of UNI HEALTH has proposed to purchase shares of the Company equivalent to more than HK$50 million, and will seek further opportunities to purchase additional shares of the Company based on the conditions of the capital market.
In the first half of this year, As China's economy has entered the new normal status, the pharmaceutical industry maintained stable growth, and the Group recorded net profit of RMB245 million for the first half of 2015, representing an increase of 9.33% year on year. Since this June, sharp changes has occurred in the stock markets in Mainland and Hong Kong. However, the stock price of the Group has achieved stable performance: the P/E ratio stands at less than 9, while the valuation of the Group is significant lower than its listed peers in Hong Kong.
Analysts commented, if the valuation of UNI HEALTH can rise to the level of its peers, the stock price is expected to double, and is hopeful to reach HK$ 6.5, the highest target price set by Morgan Stanley. Everbright Securities also raised the target price of UNI HEALTH to HK$ 4.5 recently, and the stock price still has the potential to rise by over 70%.
Under such circumstances, the substantial buyback by Chairman Jin Dongtao shows his confidence in the development trend of the universal healthcare industry in China and globally.
Mr. Jin expressed that, the buyback is based on the confidence in developing cross-border international trading with Hong Kong-listed company as platform and proposing to establish subsidiaries overseas; the confidence in accelerating the construction of mobile Internet platform and expanding sales volume rapidly. By adopting the strategy of cross border development, diversified product lines and integrated online-to-offline ("O2O") platforms, the Company has developed cross-border e-commerce business in free trade areas including Shenzhen of Guangdong Province. Meanwhile, Mr. Jin stated that, in the future, the Group would acquire outstanding companies in the universal healthcare industry. He believes that the Group will occupy a leading position in the deployment of universal health.
Further increase of shares is expected
In this April, Mr. Jin Dongtao, purchased 40,000,000 ordinary shares of the Company, representing 2% of the existing entire issued share capital of the Company at HK$2.82 per share with the approximate total amount of HK$113 million. After such purchase, the shareholding in the Company increases from approximately 45.14% to approximately 47.14% of the issued share capital, and the stock price of UNI HEALTH significantly increased by over 70%.
The Group will continue to pay close attention to movements of its stock price and changes in the capital market, and seek further opportunities to purchase additional shares of the Company in the next year.
J.P. Morgan, as one of the substantial shareholders of the Group, purchased 18,927,000 shares with the total amount of HK$ 58.01 million. After such purchase, J.P. Morgan's ownership is now 147 million shares or 7.36% of the issued share capital of the Company.
Copyright 2015 ACN Newswire. All rights reserved. www.acnnewswire.com
In the first half of this year, As China's economy has entered the new normal status, the pharmaceutical industry maintained stable growth, and the Group recorded net profit of RMB245 million for the first half of 2015, representing an increase of 9.33% year on year. Since this June, sharp changes has occurred in the stock markets in Mainland and Hong Kong. However, the stock price of the Group has achieved stable performance: the P/E ratio stands at less than 9, while the valuation of the Group is significant lower than its listed peers in Hong Kong.
Analysts commented, if the valuation of UNI HEALTH can rise to the level of its peers, the stock price is expected to double, and is hopeful to reach HK$ 6.5, the highest target price set by Morgan Stanley. Everbright Securities also raised the target price of UNI HEALTH to HK$ 4.5 recently, and the stock price still has the potential to rise by over 70%.
Under such circumstances, the substantial buyback by Chairman Jin Dongtao shows his confidence in the development trend of the universal healthcare industry in China and globally.
Mr. Jin expressed that, the buyback is based on the confidence in developing cross-border international trading with Hong Kong-listed company as platform and proposing to establish subsidiaries overseas; the confidence in accelerating the construction of mobile Internet platform and expanding sales volume rapidly. By adopting the strategy of cross border development, diversified product lines and integrated online-to-offline ("O2O") platforms, the Company has developed cross-border e-commerce business in free trade areas including Shenzhen of Guangdong Province. Meanwhile, Mr. Jin stated that, in the future, the Group would acquire outstanding companies in the universal healthcare industry. He believes that the Group will occupy a leading position in the deployment of universal health.
Further increase of shares is expected
In this April, Mr. Jin Dongtao, purchased 40,000,000 ordinary shares of the Company, representing 2% of the existing entire issued share capital of the Company at HK$2.82 per share with the approximate total amount of HK$113 million. After such purchase, the shareholding in the Company increases from approximately 45.14% to approximately 47.14% of the issued share capital, and the stock price of UNI HEALTH significantly increased by over 70%.
The Group will continue to pay close attention to movements of its stock price and changes in the capital market, and seek further opportunities to purchase additional shares of the Company in the next year.
J.P. Morgan, as one of the substantial shareholders of the Group, purchased 18,927,000 shares with the total amount of HK$ 58.01 million. After such purchase, J.P. Morgan's ownership is now 147 million shares or 7.36% of the issued share capital of the Company.
Copyright 2015 ACN Newswire. All rights reserved. www.acnnewswire.com