Sipai Health Technology Co., Ltd. (0314) AI Stock Analysis

• Market Cap: HK$1.92B
• Dividend Yield: N/A
• Average Volume (3M): 2.05M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• Revenue Growth: -26.21%
• EPS Growth: -29.70%
• Country: HK
• Employees: 3,236
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Plans
• EPS (TTM): -0.13
• Shares Outstanding: 765,453,500
• 10 Day Avg. Volume: 1,436,880
• 30 Day Avg. Volume: 2,048,921
• PEG Ratio: -0.37
• Price to Book (P/B): 2.67
• Price to Sales (P/S): 0.72
• P/FCF Ratio: -48.17
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$6.50
• Price Target Upside: 175.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$2.00 ▼(-15.25% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by recurring losses and cash flow inefficiencies. Technical analysis indicates a bearish trend, further weighing down the score. Valuation metrics are unfavorable due to negative earnings and lack of dividends, making the stock less attractive to investors.

Positive Factors

Business Model Strength

The diverse revenue streams from medical devices, software, and telemedicine services provide a robust business model, reducing reliance on a single income source and enhancing long-term stability.

Partnerships and Market Reach

Strategic partnerships expand market presence and product offerings, potentially driving revenue growth and strengthening competitive positioning in the healthcare technology sector.

Balance Sheet Improvement

Improved equity ratios indicate better balance sheet stability, which can enhance financial resilience and support future growth initiatives despite past financial distress.

Negative Factors

Recurring Losses

Ongoing losses highlight operational inefficiencies and hinder profitability, posing a risk to long-term sustainability and requiring strategic adjustments to achieve financial health.

Cash Flow Inefficiencies

Negative cash flow from operations indicates challenges in generating sufficient cash internally, necessitating reliance on external funding, which could limit financial flexibility and growth potential.

Revenue Decline

The recent decline in revenue suggests potential market or operational challenges, which could impact future growth prospects and necessitate strategic realignment to regain momentum.

Sipai Health Technology Co., Ltd. Business Overview & Revenue Model

Company Description

Sipai Health Technology Co., Ltd. (0314) is a leading company in the health technology sector, focusing on developing innovative medical devices and health management solutions. The company specializes in creating advanced diagnostic tools and health monitoring systems that leverage cutting-edge technology to enhance patient care and streamline healthcare processes. With a commitment to improving health outcomes, Sipai Health Technology offers a range of products designed for both clinical settings and personal health management.

How the Company Makes Money

Sipai Health Technology Co., Ltd. generates revenue primarily through the sale of its medical devices and health management solutions. The company has established key revenue streams from direct product sales to hospitals, healthcare providers, and retail channels. Additionally, Sipai may engage in partnerships with healthcare institutions and technology firms to co-develop products or integrate its solutions into existing healthcare infrastructures. Licensing agreements for proprietary technology and potential subscription models for ongoing health monitoring services also contribute to its earnings. Furthermore, government contracts and grants for health technology innovation could serve as significant sources of revenue.

Sipai Health Technology Co., Ltd. Financial Statement Overview

Summary

Sipai Health Technology Co., Ltd. faces significant financial challenges characterized by recurring losses and cash flow inefficiencies. Despite revenue growth in certain years, profitability remains an issue due to high operational costs. Improvements in balance sheet stability are noted, yet historical financial distress impacts overall financial health. The company's reliance on external financing to sustain operations highlights potential risks if external funding becomes constrained.

Income Statement

The company has demonstrated a mixed revenue trajectory with growth from 2019 to 2021, followed by a decline in 2024. Gross profit margin remains low, indicating limited profit from sales. There is consistent negative net profit margin due to significant losses, reflecting poor profitability and efficiency. Persistent negative EBIT and EBITDA margins indicate operational challenges and inefficiencies.

Balance Sheet

Sipai Health Technology's debt-to-equity ratio is low, indicating manageable debt levels relative to equity. However, the negative equity in earlier years signals financial instability. Recent positive equity suggests improvement, yet return on equity remains negative due to continuous net losses. The company's equity ratio has improved, enhancing balance sheet stability but still reflecting past financial distress.

Cash Flow

The company consistently reports negative operating cash flow, reflecting challenges in generating cash from operations. Free cash flow has shown improvement but remains negative, suggesting ongoing cash strain. The operating cash flow to net income ratio is unfavorable, indicating inefficiencies in converting income to cash. Financing activities have historically supported cash positions, but dependency on external funding poses risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.43B	4.57B	4.71B	4.12B	3.47B	2.70B
Gross Profit	332.69M	386.43M	412.45M	334.83M	281.06M	186.86M
EBITDA	-227.95M	-259.52M	-226.10M	-1.35B	-726.84M	-1.02B
Net Income	-317.52M	-323.74M	-255.77M	-1.37B	-3.74B	-1.04B
Balance Sheet
Total Assets	1.83B	2.27B	2.82B	2.93B	2.89B	2.48B
Cash, Cash Equivalents and Short-Term Investments	597.85M	919.77M	1.13B	1.53B	1.61B	1.67B
Total Debt	24.70M	66.49M	67.56M	67.76M	7.52B	63.59M
Total Liabilities	876.01M	1.06B	1.18B	1.10B	8.32B	4.27B
Stockholders Equity	995.88M	1.23B	1.62B	1.84B	-5.43B	-1.80B
Cash Flow
Free Cash Flow	-60.00M	-67.91M	-139.24M	-193.87M	-643.33M	-204.11M
Operating Cash Flow	-58.16M	-59.45M	-133.50M	-182.07M	-621.92M	-192.12M
Investing Cash Flow	93.73M	-622.00K	-720.81M	1.03B	-1.02B	319.62M
Financing Cash Flow	-63.31M	-184.06M	-120.55M	81.69M	559.29M	1.31B

Sipai Health Technology Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0314, the sentiment is Neutral. The current price of 2.36 is above the 20-day moving average (MA) of 2.27, below the 50-day MA of 2.54, and below the 200-day MA of 4.32, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 47.04 is Neutral, neither overbought nor oversold. The STOCH value of 89.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0314.

Sipai Health Technology Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1763	79 Outperform	HK$6.97B	15.20	8.59%	2.70%	13.59%	6.31%
1501	70 Neutral	HK$5.29B	25.57	10.31%	―	14.06%	3.02%
1931	65 Neutral	HK$9.68B	51.47	5.07%	1.88%	0.33%	-44.28%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
0314	41 Neutral	HK$1.92B	-5.33	-25.47%	―	-26.21%	-29.70%
9996	39 Underperform	€3.87B	-15.77	-11.20%	―	29.25%	9.02%
2179	39 Underperform	HK$2.64B	-3.73	-129.05%	―	―	-18.99%

Sipai Health Technology Co., Ltd. Corporate Events

Sipai Health Technology Updates on Share Schemes

Sipai Health Technology Co., Ltd., a company incorporated in the Cayman Islands, has issued a supplemental announcement to its annual report for the year ended December 31, 2024. The announcement provides additional details on the company’s share schemes, including the 2017 Plan and the RSU Scheme. As of the announcement date, the outstanding options and shares under these schemes have decreased, with the 2017 Plan having approximately three years remaining and the RSU Scheme being terminated early due to all shares being vested.

The most recent analyst rating on (HK:0314) stock is a Sell with a HK$4.50 price target. To see the full list of analyst forecasts on Sipai Health Technology Co., Ltd. stock, see the HK:0314 Stock Forecast page.

Sipai Health Technology Reports Strategic Progress and Improved Financial Performance in H1 2025

Sipai Health Technology Co., Ltd. has announced its unaudited interim results for the first half of 2025, highlighting significant progress in its strategic transformation and upgrading efforts. The company has focused on expanding its health insurance services business and has implemented structural reforms to enhance efficiency. These efforts have resulted in a 4.7 percentage point increase in gross margin and a 59.6% decrease in normalized net loss, marking a clearer path to profitability and laying a solid foundation for sustainable development.

Sipai Health Technology Announces Upcoming Board Meeting for Interim Results

Sipai Health Technology Co., Ltd. has announced that its board of directors will hold a meeting on August 18, 2025, to approve the unaudited interim results for the first half of the year and consider the payment of an interim dividend. This meeting is significant as it could impact the company’s financial strategy and shareholder returns.