About iKang
iKang is listed on the NASDAQ under the code KANG. it is a provider of preventive healthcare services in China.Through the company's integrated service platform and established nationwide network of medical centres and third party service provider facilities, the company provides preventive healthcare solutions, including a range of medical examinations services and value added services, including disease screening and other services. The company also markets its services directly to individual customers. The company has 56 self owned medical centres in operation across China.
Here's a look of its FY financials:
Revenue Growth 43.7%
Profit Growth 25.5%
EPS US$0.41
Current Ratio 1.71
Debt to Equity Ratio 0.52
Net Asset Value per Share US$9.62
Current Share Price US$17.60 (1.8x NAVPS)
iKang's financials are quite impressive. What are the compelling reasons to buy iKang?
1) China's healthcare service is still in its infancy stage.
2) Preventive healthcare services is expected to grow as the population's wealth level increases
3) The healthcare industry is less vulnerable compared to other industries against a backdrop of slowing growth in China
4) iKang's solid financials has the strength to weather through a potential slowdown
5) Good opportunity to tap into China's 1.35 billion population market when the industry is in its infancy stage.
6) Recent ease of the one child policy to boost births should create greater demand for healthcare services in the future.
The above are just my opinion.
My disclosure: I do not own any shares of iKang.
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