UMP Healthcare Holdings Limited (0722) AI Stock Analysis

• Market Cap: HK$368.44M
• Dividend Yield: 12.17%
• Average Volume (3M): 207.20K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.14
• Revenue Growth: 0.81%
• EPS Growth: 27.55%
• Country: HK
• Employees: 453
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Care Facilities
• EPS (TTM): 0.02
• Shares Outstanding: 810,955,260
• 10 Day Avg. Volume: 87,800
• 30 Day Avg. Volume: 207,200
• PEG Ratio: 1.55
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.87
• 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$0.50
• Price Target Upside: 8.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: HK$0.50 ▲(8.70%Upside)

UMP Healthcare Holdings Limited scores well due to its strong financial performance and attractive valuation. The company's solid revenue growth and cash flow generation, coupled with an appealing dividend yield and low P/E ratio, make it a compelling investment opportunity. Technical analysis indicates a positive short-term trend, further supporting the stock's outlook.

UMP Healthcare Holdings Limited Business Overview & Revenue Model

Company Description

UMP Healthcare Holdings Limited, an investment holding company, provides a range of medical and healthcare services in Hong Kong, Macau, and Mainland China. It operates in two segments, Corporate Healthcare Solution Services and Clinical Healthcare Services. The company offers virtual care; family medicine; specialist consultation services, including internal medicine, surgery, pediatrics, cardiology, dermatology, otorhinolaryngology, orthopedics, ophthalmology, urology, gastroenterology and hepatology, radiology, endocrinology, and diabetes; and dental care services, such as dental implant, cosmetic dentistry, periodontal treatments, and orthodontics, as well as traditional Chinese medicines. It also provides physiotherapy services comprises muscle-strengthening, limb function, eye-hand coordination, and hand function trainings; day surgery and endoscopy; diagnostic imaging and laboratory; health assessment; visa medical examination; vaccination and consultation; vision care and optometry; plastic, head, and neck surgeries; dermatology and aesthetics; chronic disease management; and COVID-19 screening test services. In addition, the company engages in the provision of healthcare training and consultation services. It serves insurance companies and corporations, and self-paid patients. The company operates a network of approximately 1,100 self-owned and affiliated service points. UMP Healthcare Holdings Limited was founded in 1990 and is headquartered in Central, Hong Kong.

How the Company Makes Money

UMP Healthcare makes money primarily through its extensive network of medical centers and clinics, which provide various healthcare services to patients. The company generates revenue through patient consultations, medical examinations, and specialty healthcare services. Additionally, UMP Healthcare has partnerships with corporate clients and insurance companies, offering tailored healthcare plans and services that contribute significantly to its income. The company also benefits from its preventive healthcare programs and health management services, which are designed to meet the growing demand for comprehensive healthcare solutions.

UMP Healthcare Holdings Limited Financial Statement Overview

Summary

UMP Healthcare Holdings Limited demonstrates strong revenue growth and operational efficiency, with stable cash flow generation supporting its financial health. While the balance sheet shows a prudent approach to leverage, improvements in return on equity could enhance investor returns. Overall, the company is well-positioned in the medical care facilities industry, showing resilience and potential for further growth.

Income Statement

UMP Healthcare Holdings Limited shows a positive revenue growth rate of 2.84% from 2023 to 2024 and maintains a strong gross profit margin of 92.48% for 2024. The net profit margin decreased slightly to 5.43% in 2024 from 8.31% in 2023, indicating some pressure on net income. The EBIT margin improved to 12.75% in 2024, reflecting better operational efficiency. Overall, the company demonstrates solid financial health in terms of revenue and operational performance.

Balance Sheet

The debt-to-equity ratio increased slightly to 0.24 in 2024, suggesting a conservative leverage strategy with manageable debt levels. Return on equity (ROE) decreased to 5.60% in 2024 from 8.16% in 2023, indicating a lower return on shareholder investment. The equity ratio stands at 65.61%, showing a strong reliance on equity financing. The balance sheet reflects a stable financial position but with room for improvement in ROE.

Cash Flow

Free cash flow increased by 13.41% in 2024, indicating strong cash generation capability. The operating cash flow to net income ratio is 3.58, showcasing effective conversion of income to cash. However, the free cash flow to net income ratio is 2.25, indicating a moderate level of free cash available relative to net income. Cash flow performance is robust, supporting operational and strategic flexibility.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	745.41M	748.49M	727.75M	666.20M	617.16M	558.81M
Gross Profit	497.40M	692.25M	502.69M	463.95M	456.28M	387.04M
EBITDA	68.48M	161.98M	178.21M	101.73M	127.31M	153.99M
Net Income	42.92M	40.64M	60.45M	72.17M	73.87M	58.91M
Balance Sheet
Total Assets	1.12B	1.11B	1.12B	1.04B	969.98M	891.31M
Cash, Cash Equivalents and Short-Term Investments	358.85M	294.48M	334.63M	291.65M	344.59M	277.07M
Total Debt	177.62M	172.57M	123.42M	148.34M	78.03M	86.56M
Total Liabilities	389.07M	362.14M	351.54M	300.30M	276.92M	220.80M
Stockholders Equity	722.25M	725.94M	740.55M	698.65M	639.50M	611.85M
Cash Flow
Free Cash Flow	128.12M	91.54M	80.71M	26.40M	149.17M	103.16M
Operating Cash Flow	169.39M	148.78M	190.04M	110.91M	172.67M	127.74M
Investing Cash Flow	-29.21M	-68.49M	-134.09M	-77.12M	-39.26M	-25.75M
Financing Cash Flow	-122.55M	-117.13M	-53.67M	-90.98M	-69.21M	-74.03M

UMP Healthcare Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0722, the sentiment is Positive. The current price of 0.46 is below the 20-day moving average (MA) of 0.47, above the 50-day MA of 0.44, and above the 200-day MA of 0.41, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.09 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0722.

UMP Healthcare Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0722	75 Outperform	HK$368.44M	8.57	5.95%	12.17%	0.81%	27.55%
2189	64 Neutral	HK$450.00M	20.55	5.02%	11.11%	-15.22%	-21.37%
3689	64 Neutral	HK$598.57M	36.02	1.07%	8.94%	-1.20%	-87.51%
2293	61 Neutral	HK$205.25M	8.59	10.72%	4.90%	-22.12%	-28.95%
1518	59 Neutral	HK$405.12M	7.81	8.82%	2.66%	-10.82%	-44.11%
1419	58 Neutral	HK$318.82M	15.19	2.73%	3.33%	-0.69%	―
Sector *	52 Neutral	$7.52B	0.21	-63.76%	2.30%	16.15%	0.89%

UMP Healthcare Holdings Limited Corporate Events

UMP Healthcare Announces New Appointments to Nomination Committee

UMP Healthcare Holdings Limited has announced the appointment of two new members to its Nomination Committee, effective June 13, 2025. This strategic move involves the inclusion of Ms. Kwok Cheuk Kwan, Jacquen, an executive director and co-chief executive officer, and Mr. Yeung Tak Bun, an independent non-executive director, which is expected to enhance the company’s governance and decision-making processes, potentially impacting its operational efficiency and stakeholder confidence.

UMP Healthcare Announces Board Restructuring and Committee Appointments

UMP Healthcare Holdings Limited has announced changes to its board of directors, effective from June 13, 2025. The restructured board includes a mix of executive, non-executive, and independent non-executive directors, which may influence the company’s strategic direction and governance. The establishment of key committees such as the Audit, Remuneration, and Nomination Committees, with specific directors appointed to each, underscores the company’s commitment to robust governance practices.

UMP Healthcare Strengthens Governance with New Nomination Committee Terms

UMP Healthcare Holdings Limited has outlined the terms of reference for its Nomination Committee, which is responsible for identifying and recommending candidates for the company’s board of directors. The committee, consisting mainly of independent non-executive directors, is tasked with ensuring diversity and independence in its composition. This initiative is expected to enhance the governance structure of the company, potentially improving its strategic decision-making and stakeholder confidence.