Beijing Chunlizhengda Medical Instruments 9M revenue falls 17%

Overview

• China medical device maker's unaudited nine-month revenue declined 17% yr/yr

• Net profit attributable to shareholders fell 1.6% yr/yr

Outlook

• Company did not provide specific financial guidance for future quarters or the full year in the press release

Result Drivers

• LOWER OPERATING EXPENSES – Selling, administrative and R&D expenses fell, partly offsetting the 17.1% revenue decline

• LOWER ASSET IMPAIRMENT – Asset-impairment losses narrowed to RMB6.7 mln from RMB32.1 mln, supporting operating profit

• OPERATING CASH COLLECTIONS – Operating cash flow fell 32.7%, mainly due to lower cash collections and changes in bill-settlement timing

Company press release: Full Story

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "strong buy"

• The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy."

• Wall Street's median 12-month price target for Beijing Chunlizhengda Medical Instruments Co Ltd is HK$14.90, about 101.8% above its October 30 closing price of HK$7.39

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)