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China Health Group (HK:0673)
:0673
Hong Kong Market

China Health Group (0673) AI Stock Analysis

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HK

China Health Group

(0673)

Rating:42Neutral
Price Target:
China Health Group faces substantial financial and operational challenges, as evidenced by declining revenue, profitability, and cash flow issues. The technical analysis indicates bearish momentum with the stock trading below key averages. The negative P/E ratio and lack of dividend yield further underscore valuation concerns. Overall, significant risks overshadow potential opportunities, leading to a low stock score.

China Health Group (0673) vs. iShares MSCI Hong Kong ETF (EWH)

China Health Group Business Overview & Revenue Model

Company DescriptionChina Health Group Limited, an investment holding company, engages in the distribution and services of medical equipment and consumables, and operation and management of hospitals in the People's Republic of China. It is also involved in business factoring business, as well as property investment business. The company was formerly known as China HealthCare Holdings Limited and changed its name to China Health Group Limited in September 2015. The company is headquartered in Central, Hong Kong.
How the Company Makes MoneyChina Health Group makes money through a diversified revenue model centered around its healthcare services. The company generates income primarily through hospital management fees, consulting services, and returns on investments in medical facilities. By managing hospitals and healthcare institutions, it earns management fees and a share of the operational profits. Additionally, the company offers consulting services to improve healthcare operations and efficiency, contributing to its revenue. Strategic investments in medical facilities and partnerships with other healthcare providers also provide significant returns, enhancing the company's earnings. The company's focus on integrating advanced healthcare technologies and expanding its network of facilities further supports its revenue growth.

China Health Group Financial Statement Overview

Summary
China Health Group's financial statements indicate significant challenges, including declining revenue and profitability, deteriorating equity, and negative cash flows. Despite manageable leverage, the financial trajectory and cash management issues raise concerns over long-term sustainability and growth potential.
Income Statement
45
Neutral
The income statement shows declining revenue with a significant fall from HKD 107 million in 2022 to HKD 59.9 million in 2024. Negative EBIT and net income indicate ongoing operational challenges and losses. Gross profit margin has decreased, suggesting cost pressures or inefficiencies. The negative revenue growth rate and net profit margin reflect a struggling financial performance.
Balance Sheet
55
Neutral
The balance sheet reveals a weakening equity base, with stockholders' equity decreasing from HKD 95 million in 2021 to HKD 52 million in 2024. The debt-to-equity ratio remains manageable, but the declining equity ratio and increasing liabilities could pose future risks. Cash reserves have diminished, affecting liquidity and financial stability.
Cash Flow
40
Negative
Negative operating cash flow and free cash flow indicate cash burn and insufficient internal cash generation to cover expenses and investment needs. The free cash flow to net income ratio is unfavorable, highlighting cash flow challenges. The company has not shown consistent cash flow improvement over the years.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue48.27M59.93M76.41M107.03M87.89M45.16M
Gross Profit8.52M13.64M27.19M28.69M25.99M17.25M
EBITDA-36.03M-37.42M-29.04M-4.38M-1.47M-31.69M
Net Income-42.51M-40.19M-42.05M-12.21M-7.74M-36.68M
Balance Sheet
Total Assets187.16M192.32M221.19M225.96M217.82M196.83M
Cash, Cash Equivalents and Short-Term Investments2.41M4.01M11.48M8.54M4.59M10.24M
Total Debt5.54M5.66M6.04M18.47M5.36M3.13M
Total Liabilities135.74M132.56M127.23M140.82M117.83M96.10M
Stockholders Equity43.94M52.04M86.33M79.58M95.04M96.97M
Cash Flow
Free Cash Flow-3.67M-7.03M-9.59M31.00M-10.90M-22.19M
Operating Cash Flow-3.05M-6.40M-8.22M31.80M-9.06M-21.76M
Investing Cash Flow190.00K-301.00K-5.40M-35.29M-1.84M-1.70M
Financing Cash Flow1.46M-1.24M27.66M12.96M2.63M3.88M

China Health Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.30
Price Trends
50DMA
0.22
Positive
100DMA
0.23
Positive
200DMA
0.40
Negative
Market Momentum
MACD
0.01
Positive
RSI
59.28
Neutral
STOCH
65.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0673, the sentiment is Positive. The current price of 0.3 is above the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.22, and below the 200-day MA of 0.40, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 59.28 is Neutral, neither overbought nor oversold. The STOCH value of 65.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0673.

China Health Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
49
Neutral
AU$2.47B4.40-64.25%2.83%36.51%13.14%
42
Neutral
HK$147.49M-71.31%-35.16%-37.27%
$8.32B9.376.08%2.95%
$7.35B6.889.19%4.34%
78
Outperform
HK$3.24B10.597.40%4.59%0.67%-1.75%
45
Neutral
HK$682.04M-31.49%-7.28%-46.18%
HK$761.40M13.188.78%6.93%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0673
China Health Group
0.30
-0.63
-67.74%
SHPMF
Shanghai Pharmaceuticals Holding Co
1.52
0.06
4.11%
SHTDF
Sinopharm Group Co
2.16
-0.32
-12.90%
HK:9955
ClouDr Group Limited
1.09
-0.66
-37.71%
HK:1931
IVD Medical Holding Limited
2.05
1.13
122.83%
HK:2289
Charmacy Pharmaceutical Co., Ltd. Class H
7.05
-1.00
-12.42%

China Health Group Corporate Events

China Health Group Announces Trading Halt Amidst Pending Announcement
May 2, 2025

China Health Group Limited has announced a trading halt on its shares on the Hong Kong Stock Exchange, effective from May 2, 2025. This suspension is due to an upcoming announcement related to the Hong Kong Code on Takeovers and Mergers, which contains inside information about the company. The halt indicates potential significant changes or developments within the company that could impact its operations and market positioning.

China Health Group Announces Change in Share Registrar
Mar 12, 2025

China Health Group Limited has announced a change in its Hong Kong Branch Share Registrar and Transfer Office, effective from March 31, 2025. The new registrar will be Tricor Investor Services Limited, which will handle all share transfer applications and uncollected share certificates from that date. This change is part of the company’s operational adjustments and may impact stakeholders involved in share transactions.

China Health Group Corrects Acquisition Classification to Major Transaction
Mar 4, 2025

China Health Group Limited announced a major transaction involving the acquisition of a 51% equity interest in a target company and the provision of loans to this company. The acquisition was initially misclassified as a discloseable transaction due to an oversight regarding the aggregation rules under the Listing Rules. This oversight led to the failure to disclose the Initial Loan provided to the target company before the acquisition agreement. The company has since provided additional loans, and the combined transactions now qualify as a major transaction, necessitating further reporting and shareholder approval.

China Health Group Extends Acquisition Timeline for ProteinT
Feb 28, 2025

China Health Group Limited has announced a further extension of the long stop date for its acquisition of ProteinT (Tianjin) Diagnostic, Co., Ltd., moving it from 28 February 2025 to 30 June 2025. This extension is due to the additional time required to prepare the necessary circular for shareholders, which has also delayed its dispatch to a new deadline of 30 June 2025. The extension suggests ongoing complexities in finalizing the acquisition, potentially impacting the company’s strategic plans and stakeholder expectations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 29, 2025