IKANG Healthcare Group (KANG) Files After the Bell

Jianyu Zhao |

iKang Healthcar Group, KANG, china stocks, health care stocks, chinese health care companiesIKANG Healthcare Group, Inc. ($KANG), the largest private healthcare provider in China, reported its unaudited financial results for Q4 2013 as well as the fiscal year 2013 after the bell on June 9, causing shares to leap 4.84 percent to $17.75 per share in after-hours trading (as of 5:53PM EDT). iKang stock traded up 2.67 percent during mid-day trading on June 9, hitting $16.94 on a trading volume of 487,976 shares.

According to the financial report, iKang showed data both in Q4 and fiscal 2013 that should excite investors. In the quarter that ending March 31, 2014, iKang had net revenues of $29.5 million, a 60.9 percent from the year-earlier quarter. The company had gross profit of $95.9 million, up 61.0 percent year-over-year.

The picture for full-year fiscal 2013 results was also positive. Net revenues were $202.3 million, up 51.1 percent from fiscal-year 2012. As for the gross profit, the company made $95.9 million, improving 52.7 percent from $62.8 million in the previous fiscal year.

These results reflect a stable and solid growth across all three major service categories, including medical examinations, disease screening, and other services. The sales growth was mainly driven by a fast growing corporate and individual customer base as well as increasing demand for respective services.

In the meantime, expansion of the small-cap company’s medical center infrastructure is contributing to the favorable results. By the end of March 2014, the number of self-owned medical centers had increased from 36 to 45 within one year. The company served 2.7 million individuals in total for fiscal year 2013 under both corporate and individual programs, a 37.9 percent increase over the fiscal year 2012.

Lee Ligang Zhang, Chairman and CEO of iKang, thought that the company went through many “historical” moments over the past one year.

“Our public offering is a true testament to our capabilities as the prime mover in China’s fast moving private preventive healthcare services market and reinforces our drive to offer a comprehensive range of quality services to a high-end customer base,” said Zhang. “Our earnings have underlined the successful execution of this business model, with a strong annual operating performance.”

Zhang added that the company would also focus on “network expansion through new centers” and continue to “promote iKang Evergreen brand.”

In the current quarter, the stock has a return-on-equity of 61.70 percent, which could demonstrate a profitable outlook for the company. For the fiscal year ending March 31, 2015, the company expects its net revenues to be between $283 million and $290 million, representing a year-over-year increase of 40.0 percent.

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
KANG iKang Healthcare Group Inc. 15.65 0.38 2.49 299,597
MRVFF Metallum Res Inc Ord n/a n/a n/a 0

Comments

Emerging Growth

IBC Advanced Alloys Corp.

IBC Advanced Alloys Corp is engaged in the production and development of specialty alloy products. Its products include copper alloys and berryllium aluminium alloys.

Private Markets

BioSculpture Technology, Inc.

BioSculpture Technology, Inc. (“BST”) is a commercial-stage medical device manufacturer of liposuction surgical instruments for surgeons. It offers the FDA-cleared Twin Cannula Assisted Liposuction ("TCAL") Airbrush Liposculptor II® controllers, Airbrush®…

8tracks

Our mission is to be the best place for people who care about music to create and discover thoughtfully curated playlists. In essence, 8tracks is a platform for online mixtapes.