China Health Group (0673) AI Stock Analysis

• Market Cap: HK$816.87M
• Dividend Yield: N/A
• Average Volume (3M): 617.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: -17.39%
• EPS Growth: -45.76%
• Country: HK
• Employees: 118
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Distribution
• EPS (TTM): -0.02
• Shares Outstanding: 1,339,138,200
• 10 Day Avg. Volume: 474,015
• 30 Day Avg. Volume: 617,889
• PEG Ratio: -0.03
• Price to Book (P/B): -14.98
• Price to Sales (P/S): 2.95
• P/FCF Ratio: -13.74
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: HK$0.59 ▼(-22.89% Downside)

The score is primarily constrained by weak financial performance—ongoing losses, negative equity, and negative operating/free cash flow. Technical indicators add only limited support (some longer-term recovery but short-term weakness/low RSI), while valuation is not supportive due to negative earnings and no dividend data.

Positive Factors

Diversified Healthcare Revenue Streams

Operating across pharmaceuticals, supplements and medical services provides diversified revenue streams that reduce concentration risk. This multi-segment model supports cross-selling, smoother demand cycles across categories, and more stable long-term revenue potential vs single-product firms.

Distribution Network and Partnerships

An established distribution network and partnerships with healthcare providers create durable go-to-market advantages, easing new product rollout and geographic expansion. These channels lower customer acquisition costs and act as structural barriers to entry for smaller competitors over months to years.

Favourable Structural Market Trends

Secular demand growth from rising health/wellness focus and government healthcare initiatives in China supports long-term market expansion. Structural tailwinds increase addressable market size, enabling sustained product demand and strategic investment opportunities over multi-quarter horizons.

Negative Factors

Negative Equity / Solvency Risk

Negative stockholders' equity signals potential solvency stress and weak capital structure. Over months this constrains access to traditional financing, may trigger covenant or supplier concerns, and limits strategic flexibility for investments or M&A without significant recapitalization.

Persistent Losses and Declining Revenue

Sustained revenue declines and negative operating profitability erode competitive capacity to invest in R&D, marketing, or service expansion. Continued losses weaken negotiating power with partners, hinder scale economics, and raise structural questions about long-term viability absent durable margin recovery.

Negative Operating and Free Cash Flow

Persistent negative operating and free cash flows create ongoing liquidity pressure, forcing reliance on external financing or asset sales. This limits the firm's ability to fund growth initiatives, meet obligations, and sustain operations, elevating refinancing and survival risk over coming quarters.

China Health Group Business Overview & Revenue Model

Company Description

China Health Group (0673) is a healthcare-focused company operating primarily in China. The company is engaged in various sectors including pharmaceuticals, health supplements, and medical services. It aims to improve health outcomes through the provision of high-quality healthcare products and services, catering to the growing demand for health solutions in the region.

How the Company Makes Money

China Health Group generates revenue through multiple streams, primarily by selling pharmaceutical products, health supplements, and offering medical services. The company leverages its extensive distribution network to reach a broad customer base, which includes both retail and wholesale channels. Additionally, strategic partnerships with healthcare providers and institutions enhance its market presence and facilitate access to new markets. The increasing focus on health and wellness in China, along with government initiatives promoting healthcare improvements, further contributes to its revenue growth.

China Health Group Financial Statement Overview

Summary

Financial statements indicate material weakness: declining revenue, persistently negative profitability (negative EBIT/EBITDA and deep net losses), negative stockholders’ equity raising solvency concerns, and negative operating/free cash flow pointing to ongoing liquidity strain.

Income Statement

The income statement reveals significant challenges, with a consistent decline in revenue and negative profitability metrics. The gross profit margin has decreased over the years, and the net profit margin is deeply negative, indicating substantial losses. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and cost management issues. Overall, the company is struggling to generate profits and maintain revenue growth.

Balance Sheet

The balance sheet shows a concerning financial position with negative stockholders' equity in the latest period, indicating potential solvency issues. The debt-to-equity ratio has turned negative, and the return on equity is erratic, reflecting inconsistent financial performance. The equity ratio is also low, suggesting a weak capital structure. These factors highlight the company's financial instability and potential risks.

Cash Flow

Cash flow analysis indicates severe liquidity challenges, with negative operating and free cash flows. Although there is some improvement in free cash flow growth, the operating cash flow to net income ratio is negative, suggesting poor cash generation relative to reported losses. The free cash flow to net income ratio is positive, but this is due to the negative net income, which is not a favorable indicator. Overall, the company faces significant cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.94M	38.94M	59.93M	76.41M	107.03M	87.89M
Gross Profit	9.23M	9.23M	13.64M	27.19M	28.69M	25.99M
EBITDA	-63.71M	-63.71M	-37.42M	-33.04M	-4.38M	-1.47M
Net Income	-67.79M	-67.79M	-40.19M	-42.05M	-12.21M	-7.74M
Balance Sheet
Total Assets	147.35M	147.35M	192.32M	221.19M	225.96M	217.82M
Cash, Cash Equivalents and Short-Term Investments	1.05M	1.05M	4.01M	11.48M	8.54M	4.59M
Total Debt	6.50M	6.50M	5.66M	6.04M	18.47M	5.36M
Total Liabilities	147.25M	147.25M	132.56M	127.23M	140.82M	117.83M
Stockholders Equity	-7.66M	-7.66M	52.04M	86.33M	79.58M	95.04M
Cash Flow
Free Cash Flow	-8.35M	-8.35M	-7.03M	-9.59M	31.00M	-10.90M
Operating Cash Flow	-6.76M	-6.76M	-6.40M	-8.22M	31.80M	-9.06M
Investing Cash Flow	-1.58M	-1.58M	-301.00K	-5.40M	-35.29M	-1.84M
Financing Cash Flow	8.79M	8.79M	-1.24M	27.66M	12.96M	2.63M

China Health Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0673, the sentiment is Negative. The current price of 0.76 is below the 20-day moving average (MA) of 0.76, above the 50-day MA of 0.72, and above the 200-day MA of 0.46, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 25.46 is Positive, neither overbought nor oversold. The STOCH value of 4.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0673.

China Health Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1099	72 Outperform	HK$65.16B	8.86	8.74%	3.75%	-2.68%	-21.45%
1931	69 Neutral	HK$2.37B	12.59	5.07%	3.81%	0.33%	-44.28%
2607	64 Neutral	HK$65.17B	7.25	7.53%	2.67%	2.77%	39.24%
2289	60 Neutral	HK$626.40M	12.01	8.12%	8.03%	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
0673	42 Neutral	HK$816.87M	-5.91	-465.55%	―	-17.39%	-45.76%
9955	40 Underperform	HK$566.22M	-0.51	-69.05%	―	-43.86%	-217.25%

China Health Group Corporate Events

China Health Group Details Funding Moves to Address Going-Concern Disclaimer

China Health Group Limited has provided an update on measures to address its auditors’ disclaimer of opinion on the company’s ability to continue as a going concern for the year ended 31 March 2025. The company has completed share subscriptions and a rights issue, raising net proceeds of about HK$80.9 million to ease liquidity pressure, is negotiating the renewal of approximately HK$5.4 million in bank borrowings targeted for completion by the end of the first quarter of 2026, and continues to explore additional funding channels as needed. Management has committed to publishing progress updates every three months until the going-concern disclaimer is resolved and has cautioned shareholders and investors to exercise care when trading its securities, underscoring ongoing financial uncertainty despite recent capital-raising efforts.

The most recent analyst rating on (HK:0673) stock is a Hold with a HK$0.78 price target. To see the full list of analyst forecasts on China Health Group stock, see the HK:0673 Stock Forecast page.

China Health Group Reports Narrowed Losses in Interim Financial Results

China Health Group Limited reported its unaudited condensed consolidated interim financial results for the six months ending September 30, 2025. The company experienced a slight increase in revenue to HK$19,610,000 from HK$18,680,000 in the previous year. However, it faced a loss before tax of HK$10,889,000, which is an improvement from the previous year’s loss of HK$17,607,000. The total comprehensive loss for the period was HK$10,648,000, showing a reduction from the previous year’s loss of HK$18,130,000. Despite the losses, the financial results indicate a narrowing of losses, which could suggest potential stabilization or improvement in the company’s financial health.

The most recent analyst rating on (HK:0673) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Health Group stock, see the HK:0673 Stock Forecast page.

China Health Group Updates on Loan Recovery Efforts

China Health Group Limited has announced a supplemental update to its annual report for the financial year ending March 31, 2025. The update highlights an impairment loss of approximately HK$11.7 million related to expected credit losses on loan and interest receivables. The company has taken legal action to recover a loan from Shuangluan Hospital, with ongoing litigation at the Chengde Court and discussions with the Shuangluan Government for possible repayment plans. The outcome of these actions could significantly impact the company’s financial recovery efforts and its stakeholders.

The most recent analyst rating on (HK:0673) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Health Group stock, see the HK:0673 Stock Forecast page.

China Health Group Addresses Liquidity and Financial Concerns

China Health Group Limited announced measures to address liquidity pressures and a disclaimer of opinion on its financial statements for the year ending March 2026. The company successfully raised approximately HK$80.9 million through subscriptions and a rights issue, and plans to finalize bank borrowing negotiations by early 2026. The board remains vigilant in assessing operational and funding needs, advising shareholders to exercise caution when dealing with company securities.

The most recent analyst rating on (HK:0673) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Health Group stock, see the HK:0673 Stock Forecast page.

China Health Group Schedules Board Meeting to Review Interim Results

China Health Group Limited, a company incorporated in Bermuda and operating in Hong Kong, has announced a board meeting scheduled for November 28, 2025. The meeting will focus on reviewing and approving the unaudited interim results for the six months ending September 30, 2025, which could impact the company’s financial transparency and stakeholder confidence.

The most recent analyst rating on (HK:0673) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Health Group stock, see the HK:0673 Stock Forecast page.

China Health Group Announces Board Composition and Committee Roles

China Health Group Limited, a company incorporated in Bermuda and operating in Hong Kong as CHG HS Limited, has announced the composition of its board of directors and the roles within its three board committees. The announcement details the executive, non-executive, and independent non-executive directors, as well as the members and chairpersons of the audit, nomination, and remuneration committees. This update provides stakeholders with clarity on the governance structure of the company, potentially impacting its strategic direction and operational oversight.

The most recent analyst rating on (HK:0673) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Health Group stock, see the HK:0673 Stock Forecast page.

China Health Group Announces Leadership Changes

China Health Group Limited has announced significant changes in its leadership structure, appointing Mr. Cao Xu as the new executive director and chairman of the board, effective October 31, 2025. Mr. Cao brings extensive experience in investments and the pharmaceutical industry, which is expected to enhance the company’s strategic direction and strengthen its market position. Additionally, Ms. Ying Rensi has been appointed as an executive director, further contributing to the company’s leadership team.

The most recent analyst rating on (HK:0673) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Health Group stock, see the HK:0673 Stock Forecast page.