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Chindex International, AŞ Message Board

  • outthegate123 outthegate123 Mar 16, 2013 1:31 PM Flag

    What is the value here?

    IMO anything under $30 is a buy, buy, buy. Do the math - growing at 30% in an undeserved market. These guys name the price of service. They are the most expensive healthcare provider in China and they can not keep up with demand. Management understands the cost and income formula needed to keep the balance sheet strong while building out the business model and growing revenue and earnings. I see the strong and steady growth rate of 30% exceeding my lifetime. The CHDX pps should follow the same growth rate.

    Sentiment: Strong Buy

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    • andersongordon Mar 16, 2013 4:44 PM Flag

      Chindex has stated they want to keep prices reasonable and are looking to penetrate the upper end of the Chinese domestic market. They currently get the bulk of their clientel from those holding foreign passports, but if you look at their plan to open a 400 bed hospital (vs 120 currently in Bejing) they have stated the growing wealthy class of Chinese are able to afford world class health care but have no easily accessable providers. Currently they can use domestic medical technology and services or go overseas. China is adding more millionares per year than the US and Chindex wants to dominate that developing market. I think its a great strategy. 80% of 100k patients vs 50% of 10000k patients at reasonable margins (15-25%) is the choice they have. .8*100k*.25=20k, .5*10000k*.15=750k

      Either way, your sense of direction is correct, strong steady growth rate....exceeding my lifetime.


      Sentiment: Strong Buy

      • 1 Reply to andersongordon
      • some U.S. hospitals with aprox. 500 bed do over 2 billion in revenue. as of dec. 2012 Chindex had around 125 beds by 2014 they will have around 500 beds. 2012 Chindex revenue was around 150 million. Chindex can easily do 500 million in revenue in 2 to 3 years. and a billion is not out of the question. And last year in one of their conference calls they talked about the Chinese government had talked to them about Chindex being allowed to accept some Chinese insurance at some point. if that happens they can do 2 billion in revenue in 3 to 4 years. and that would be with no other expansions. this stock is trading way to cheap at this level. tremendous upside for Chindex.

        Sentiment: Strong Buy