HONG KONG, Sept. 18, 2015 /PRNewswire/ -- 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 China 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.
About UNIVERSAL HEALTH INTERNATIONAL GROUP HOLDING LIMITED
Universal Health International Group Holding Limited ("UNI HEALTH" or the "Company", stock code: 2211) is one of the leading pharmaceutical retailers and distributors in China. As at 30 June 2015, the Company has 953 retail pharmacies including four stores in Hong Kong and approximately 6,500 distribution customers. The Company has high net profit margin, which is attributable to the product mix with a focus on high-gross-margin products, the centralized procurement platform and low operation costs. The Company provides training programs to its employees and customers through Jintian Institute. The Company also has strong execution capability for acquisitions and integration which enables it to implement its product mix, advanced business model and sophisticated operation procedures in the acquired businesses. The Company has formed distinctive business model and core competitive strengths.
Safe Harbor Statement
The materials used in this press conference are being furnished to you for your information only. No representation or warranty, express or implied, is made by the Company or its connected person, or any of their respective directors, officers, employees, advisers or representatives as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of any information or opinion contained herein. This article may contain the Company's opinions on, and plans and expectation in the future. Any such prospects and forward looking statements are based on the current expectation or opinion of the management and a number of assumptions and estimations about the operations of the Company, as well as factors which are beyond the Company's control. The data and opinion contained herein are based on the information as at 30 June 2015, which are subject to change without notice. Such data and opinion have not been, and will not be, updated to reflect any developments which may occur after the date of preparing this presentation. No reliance should be placed on the data contained herein which is based on the information as at 30 June 2015 or the prospects and forward-looking statements which do not guarantee the future performance of the Company.
For further information, please contact:
Wonderful Sky Financial Group Holdings Limited
Angus Song / Sylvia Zhang / Sheena Chen
Tel：(852) 3970 2175 / (852) 3970 2161 / (852) 3970 2288
Fax：(852) 2598 1588
Email：po@wsfg.hk / angussong@wsfg.hk / sylviazhang@wsfg.hk / sheenachen@wsfg.hk
