The online doctor
With the Corona virus making headlines, doctor visits are expected to increase, at least in China and HK. But better still, avoid the contagious waiting rooms full of sick patients and see your doctor from home. Which brings me to 1833:HK / PA Gooddoctor or Ping An Healthcare and Technology Company Limited, a subsidiary of Ping Ang insurance.
What do they do?
Ping An Healthcare and Technology Company Limited provides health care software solutions. The Company offers mobile platform for online consultation, hospital referral and appointment, health management, and wellness interaction services, as well as connects consumers and patients with health care resources. Ping An Healthcare and Technology serves customers in China.
Why do I care about stocks in HK instead of Europe?
Well, I find it easier and perhaps at times more interesting to find high growth stocks outside of Europe. This company enjoys solid backing from it's majority owner and benefits from the major trend where the consumer migrates to online services. Sounds appealing!
In my view, the Corona virus acts as a trigger, yet at the moment when I purchased shares in this company, it was the mind-boggling revenue growth which caught my attention among a few other metrics. The headline making virus was tomorrows news... Future revenue growth is expected to be high at more than 40% while costs seem to be contained in the past, even during a period of such high growth this company is going through.
The company is unfortunately still not profitable, nor is it expected to be so for the next three years. Thus it's worthwhile investigating the cash runway, this is estimated to be sufficient for the next three years based on today's free cash flow, a secondary offering in 2019 of roughly 15% should also ease the future financing needs.
Earnings and Revenue Growth Forecasts:
Earnings and Revenue History:
How has the stock price developed lately?
The recent headlines has no doubt given this rocket fuel. The stock is fairly young so for those trained in William O'Neill type of bullish IPO chart bases, this may fit the description. In the short term, this stock might have gone ahead of itself while long term, the major underlying revenue trend is no doubt be up.
Is it risk free? Young, fast growing companies never are!
Charts courtesy of eSignal and Simplywall.st
Disclaimer: This is not a buy or a sell recommendation, as a market participant, one must solely rely on your own research and risk management.