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Should You Consider China Resources Medical Holdings Company Limited (HKG:1515)?

Simply Wall St

I've been keeping an eye on China Resources Medical Holdings Company Limited (HKG:1515) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe 1515 has a lot to offer. Basically, it is a company with great financial health as well as a a great history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on China Resources Medical Holdings here.

Excellent balance sheet with proven track record

1515 delivered a bottom-line expansion of 38% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did 1515 outperformed its past performance, its growth also surpassed the Healthcare industry expansion, which generated a 9.5% earnings growth. This is an notable feat for the company. 1515's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that 1515 manages its cash and cost levels well, which is a key determinant of the company’s health. 1515 appears to have made good use of debt, producing operating cash levels of 0.48x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

SEHK:1515 Income Statement, September 22nd 2019

Next Steps:

For China Resources Medical Holdings, I've put together three pertinent aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for 1515’s future growth? Take a look at our free research report of analyst consensus for 1515’s outlook.
  2. Valuation: What is 1515 worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether 1515 is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 1515? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.