New Frontier Health is on a mission to building China’s next generation of healthcare and senior care infrastructure
New Frontier Health
Target Price: $12.30
New Frontier Health (NFH) was founded to deliver high quality and comprehensive healthcare services across China, and to capitalize on growth opportunities through organic expansion of the United Family platform, as well as strategic acquisitions. NFH’s investment in UFH will drive accelerated growth to United Family Healthcare through its strategic development and expansion plan designed to grasp the opportunity created by the supply and demand mismatch and changing demographics in China.
Favorable long-term secular drivers: Rapid growth in demand for healthcare services driven by an aging population base (22% of China’s population by 2040 expected to be 65+ years old), huge and growing burden of chronic and lifestyle disease, growth in commercial healthcare insurance, and under-penetration of the Chinese private healthcare market.
Well known and trusted brand in China: United Family Healthcare is recognized as the leading comprehensive premium healthcare services provider in China, having been awarded with Famous Brand Status by the Chinese government. With one of the largest revenue bases, comprehensive healthcare offering (30+ specialties), broad geographic coverage in all four Tier One cities in China, and complementary strategic coverage in selective Tier Two cities, UFH is the “go to” brand for the growing affluent Chinese and international patient population.
Unique hospital and clinic hub & spoke network: Integrated healthcare services model generates significant synergies and drives a significant portion of revenue through clinic network referrals.
Multi-dimensional growth opportunities: Meaningful value creation through Tier Two city expansion, more depth in acute care specialties, enhanced outpatient network, technology upgrades, and M&A opportunities.
Well-established nationwide platform with scale and an experienced management team, supported by a strong central services backbone: 9* hospitals, 18 clinics, 700+ licensed beds in operation across all four Tier One cities with a management team that has worked together for 20+ years.
New Frontier Health Corporation is a company principally engaged in the provision of healthcare services.
The Company operates private hospitals, outpatient clinics and medical centers.
The Company provides preventive care, diagnosis, treatment and rehabilitation services, among others.
Shayne Heffernan Trade Idea
“Our current price target of New Frontier Health Corporation will come in around $12.30 giving the stock a price increase of +48.55%.”
Overall, the bias in prices is: Downwards.
The projected upper bound is: 8.86.
The projected lower bound is: 7.72.
The projected closing price is: 8.29.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 24 white candles and 22 black candles for a net of 2 white candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 50.0000. This is not an overbought or oversold reading. The last signal was a buy 1 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 53.91. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 68 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 121.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 8 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 0 period(s) ago.
Rex Takasugi – TD Profile
NEW FRNTIER HLTH closed up 0.080 at 8.280. Volume was 81% below average (consolidating) and Bollinger Bands were 60% narrower than normal.
Open High Low Close Volume 8.220 8.280 8.220 8.280 2,423
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bearish
Moving Averages: 10-period 50-period 200-period Close: 8.13 8.10 9.20 Volatility: 37 45 38 Volume: 14,258 8,758 24,151
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
NEW FRNTIER HLTH gapped up today (bullish) on light volume. Possibility of a Common Gap which usually coincides with a lack of interest in the security. Common Gaps are fairly irrelevent for forecasting purposes. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
NEW FRNTIER HLTH is currently 10.0% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of NFH.N (mildly bearish). Our trend forecasting oscillators are currently bearish on NFH.N and have had this outlook for the last 7 periods.