July 24, 2024

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Here’s Why We Think Honliv Healthcare Management Group Company Limited’s (HKG:9906) CEO Compensation Looks Fair for the time being

4 min read

Key Insights

  • Honliv Healthcare Management Group’s Annual General Meeting to take place on 14th of June
  • Total pay for CEO Yan Qin includes CN¥800.0k salary
  • The total compensation is similar to the average for the industry
  • Honliv Healthcare Management Group’s total shareholder return over the past three years was 29% while its EPS grew by 15% over the past three years

CEO Yan Qin has done a decent job of delivering relatively good performance at Honliv Healthcare Management Group Company Limited (HKG:9906) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 14th of June. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

View our latest analysis for Honliv Healthcare Management Group

How Does Total Compensation For Yan Qin Compare With Other Companies In The Industry?

Our data indicates that Honliv Healthcare Management Group Company Limited has a market capitalization of HK$1.5b, and total annual CEO compensation was reported as CN¥1.7m for the year to December 2023. That’s a notable increase of 13% on last year. While this analysis focuses on total compensation, it’s worth acknowledging that the salary portion is lower, valued at CN¥800k.

For comparison, other companies in the Hong Kong Healthcare industry with market capitalizations ranging between HK$781m and HK$3.1b had a median total CEO compensation of CN¥1.5m. This suggests that Honliv Healthcare Management Group remunerates its CEO largely in line with the industry average. Moreover, Yan Qin also holds HK$783m worth of Honliv Healthcare Management Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component 2023 2022 Proportion (2023)
Salary CN¥800k CN¥800k 48%
Other CN¥863k CN¥674k 52%
Total Compensation CN¥1.7m CN¥1.5m 100%

Speaking on an industry level, nearly 72% of total compensation represents salary, while the remainder of 28% is other remuneration. It’s interesting to note that Honliv Healthcare Management Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
SEHK:9906 CEO Compensation June 7th 2024

A Look at Honliv Healthcare Management Group Company Limited’s Growth Numbers

Honliv Healthcare Management Group Company Limited has seen its earnings per share (EPS) increase by 15% a year over the past three years. In the last year, its revenue is up 4.5%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. While we don’t have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Honliv Healthcare Management Group Company Limited Been A Good Investment?

With a total shareholder return of 29% over three years, Honliv Healthcare Management Group Company Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude…

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That’s why we did some digging and identified 1 warning sign for Honliv Healthcare Management Group that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

Valuation is complex, but we’re helping make it simple.

Find out whether Honliv Healthcare Management Group is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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