China Health Group (0673) AI Stock Analysis

• Market Cap: HK$176.99M
• Dividend Yield: N/A
• Average Volume (3M): 794.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.37
• Revenue Growth: -35.16%
• EPS Growth: -37.27%
• Country: HK
• Employees: 118
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Distribution
• EPS (TTM): -0.10
• Shares Outstanding: 491,644,780
• 10 Day Avg. Volume: 971,461
• 30 Day Avg. Volume: 794,223
• PEG Ratio: 0.78
• Price to Book (P/B): 3.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -43.48
• 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

• Rating: 42 Neutral
• 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 Business Overview & Revenue Model

Company Description

China 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 Money

China 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

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

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

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.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	59.93M	76.41M	107.03M	87.89M	45.16M
Gross Profit	13.64M	27.19M	28.69M	25.99M	17.25M
EBITDA	-37.42M	-29.04M	-4.38M	-1.47M	-31.69M
Net Income	-40.19M	-42.05M	-12.21M	-7.74M	-36.68M
Balance Sheet
Total Assets	192.32M	221.19M	225.96M	217.82M	196.83M
Cash, Cash Equivalents and Short-Term Investments	4.01M	11.48M	8.54M	4.59M	10.24M
Total Debt	5.66M	6.04M	18.47M	5.36M	3.13M
Total Liabilities	132.56M	127.23M	140.82M	117.83M	96.10M
Stockholders Equity	52.04M	86.33M	79.58M	95.04M	96.97M
Cash Flow
Free Cash Flow	-7.03M	-9.59M	31.00M	-10.90M	-22.19M
Operating Cash Flow	-6.40M	-8.22M	31.80M	-9.06M	-21.76M
Investing Cash Flow	-301.00K	-5.40M	-35.29M	-1.84M	-1.70M
Financing Cash Flow	-1.24M	27.66M	12.96M	2.63M	3.88M

China Health Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 0.36 is above the 20-day moving average (MA) of 0.33, above the 50-day MA of 0.29, and below the 200-day MA of 0.37, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 66.83 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	¥354.70B	11.38	-2.99%	2.49%	11.76%	-10.21%
0673	42 Neutral	HK$176.99M	―	-305.54%	―	-35.16%	-37.27%
SHPMF	―	$8.97B	10.02	6.08%	2.07%	―	―
SHTDF	―	$7.69B	7.65	9.19%	1.79%	―	―
1931	77 Outperform	HK$5.85B	19.12	7.40%	2.54%	0.67%	-1.75%
9955	47 Neutral	HK$1.00B	―	-31.49%	―	-7.28%	-46.18%
2289	―	HK$739.80M	12.81	8.78%	0.99%	―	―

China Health Group Corporate Events

China Health Group Announces Trading Halt Amidst Pending Announcement

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

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

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

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.