NEW YORK (

TheStreet

)

-- China Kanghui Holdings

(NYSE:

KH

) has been downgraded by TheStreet Ratings from hold to sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • KH has underperformed the S&P 500 Index, declining 24.78% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • CHINA KANGHUI HOLDINGS -ADR reported flat earnings per share in the most recent quarter. This year, the market expects an improvement in earnings ($0.77 versus $0.53).
  • The net income growth from the same quarter one year ago has exceeded that of the Health Care Equipment & Supplies industry average, but is less than that of the S&P 500. The net income increased by 13.6% when compared to the same quarter one year prior, going from $4.08 million to $4.63 million.
  • When compared to other companies in the Health Care Equipment & Supplies industry and the overall market, CHINA KANGHUI HOLDINGS -ADR's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for CHINA KANGHUI HOLDINGS -ADR is currently very high, coming in at 72.50%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 35.70% significantly outperformed against the industry average.

China Kanghui Holdings, through its subsidiaries, engages in the development, manufacture, and sale of implants and instruments. It offers approximately 36 product series of orthopedic implants and associated instruments for trauma, spine, cranial maxillofacial, and craniocerebral indications. China Kanghui has a market cap of $345.4 million and is part of the

health care

sector and

health services

industry. Shares are down 22.3% year to date as of the close of trading on Monday.

You can view the full

China Kanghui Ratings Report

or get investment ideas from our

investment research center

.

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