Qianhai Health Holdings Ltd. (0911) AI Stock Analysis

• Market Cap: HK$46.60M
• Dividend Yield: N/A
• Average Volume (3M): 199.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: -40.37%
• EPS Growth: -112.64%
• Country: HK
• Employees: 14
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 169,445,000
• 10 Day Avg. Volume: 241,207
• 30 Day Avg. Volume: 199,376
• PEG Ratio: -0.30
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 11.52
• 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: 47 Neutral
• Price Target: HK$0.27 ▼(-3.21% Downside)

The overall stock score is primarily influenced by financial performance, which shows improvement but is hindered by revenue volatility and cash flow issues. Technical analysis provides mixed signals, and valuation is weak due to a negative P/E ratio and lack of dividend yield. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Balance Sheet Health

A strong equity position and low leverage risk provide financial stability, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Return to Profitability

Returning to profitability indicates effective cost management and operational improvements, enhancing the company's long-term financial health and sustainability.

Gross Profit Margin Improvement

Improved gross profit margins suggest better cost control and pricing strategies, contributing to stronger future earnings potential and competitive positioning.

Negative Factors

Revenue Volatility

Significant revenue fluctuations indicate instability in demand or market conditions, which can challenge consistent growth and strategic planning.

Cash Flow Challenges

Zero cash flow from operations limits the company's ability to reinvest in the business, pay down debt, or buffer against economic downturns, posing a risk to financial health.

Declining Total Assets

A reduction in total assets may limit the company's capacity to expand operations or invest in new opportunities, potentially impacting long-term growth prospects.

Qianhai Health Holdings Ltd. Business Overview & Revenue Model

Company Description

Qianhai Health Holdings Limited, an investment holding company, engages in the sale of health products and electronic component products in Hong Kong. The company operates through Health-Care Products and Electronic Component Products segments. It offers Chinese herbal medicines, and skincare and other health-care products to wholesalers and retailers, as well as American ginseng, a perennial plant. The company is also involved in the sale of electronic components, including central processing unit, semi-conductor, etc. In addition, it engages in the trading of health-care products and electronic components; and money lending business. The company was formerly known as Hang Fat Ginseng Holdings Company Limited and changed its name to Qianhai Health Holdings Limited in September 2016. The company was founded in 1989 and is based in Sheung Wan, Hong Kong. Qianhai Health Holdings Limited is a subsidiary of Explorer Rosy Limited.

How the Company Makes Money

Qianhai Health Holdings generates revenue through multiple streams, primarily from the sale of its health supplements and traditional Chinese medicine products. The company capitalizes on the growing consumer preference for health and wellness products, leveraging both online and offline sales channels. Additionally, Qianhai Health engages in strategic partnerships with healthcare providers and distributors to expand its market reach and enhance product visibility. The company also explores opportunities in e-commerce, aiming to increase direct sales to consumers through its online platforms, which has proven to be a significant contributor to its earnings.

Qianhai Health Holdings Ltd. Financial Statement Overview

Summary

Qianhai Health Holdings Ltd. shows signs of financial improvement with a return to profitability in 2024. However, significant revenue fluctuations and cash flow challenges highlight potential risks. While the balance sheet remains strong with low debt levels, the company must address its cash flow issues to ensure sustainable growth.

Income Statement

The company's revenue has shown significant volatility with a notable decline from 2022 to 2023. Despite this, the gross profit margin improved to 5.71% in 2024 from a negative margin in 2023. Net profit margins have improved from negative to a marginally positive 0.25% in 2024, indicating a turnaround. However, the negative revenue growth rate and fluctuating EBIT and EBITDA margins signal instability and potential risk.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 94.67% in 2024, suggesting financial stability and low leverage risk with a debt-to-equity ratio of only 0.0027. However, the overall decrease in total assets over the years could be a concern for future growth potential.

Cash Flow

The cash flow situation is concerning, as operating and free cash flows were zero in 2024, indicating potential liquidity issues. The company has previously experienced negative cash flows, which could affect its ability to invest and grow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	383.16M	519.70M	961.29M	1.96B	283.40M	760.72M
Gross Profit	-6.15M	29.67M	-35.60M	76.48M	16.04M	45.13M
EBITDA	1.78M	15.64M	-50.23M	-231.24M	2.06M	5.63M
Net Income	-11.85M	1.31M	-52.70M	-233.70M	-888.00K	-804.00K
Balance Sheet
Total Assets	392.38M	407.31M	478.12M	534.43M	738.63M	735.47M
Cash, Cash Equivalents and Short-Term Investments	27.43M	23.51M	19.52M	1.64M	2.47M	16.36M
Total Debt	733.00K	1.03M	487.00K	1.19M	7.83M	24.07M
Total Liabilities	2.32M	21.74M	94.00M	97.73M	68.09M	62.28M
Stockholders Equity	390.06M	385.57M	384.11M	436.70M	670.53M	673.19M
Cash Flow
Free Cash Flow	10.48M	4.19M	857.00K	-5.26M	-44.19M	-70.90M
Operating Cash Flow	10.48M	4.20M	857.00K	-5.26M	-44.18M	-70.89M
Investing Cash Flow	11.00K	246.00K	17.77M	12.34M	46.84M	122.43M
Financing Cash Flow	-340.00K	-712.00K	-743.00K	-7.91M	-16.56M	-55.19M

Qianhai Health Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0911, the sentiment is Neutral. The current price of 0.28 is below the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.29, and above the 200-day MA of 0.26, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.62 is Neutral, neither overbought nor oversold. The STOCH value of 43.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0911.

Qianhai Health Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0858	54 Neutral	HK$226.95M	-0.64	-32.04%	―	-11.89%	-290.48%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1652	49 Neutral	HK$595.53M	-3.16	-40.38%	―	-43.46%	-96.48%
8622	48 Neutral	HK$211.34M	-40.20	-8.71%	―	2.54%	33.33%
0911	47 Neutral	HK$46.60M	-4.92	-2.40%	―	-40.37%	-112.64%
1312	46 Neutral	HK$172.94M	-0.48	-41.48%	―	6.55%	-475.22%
1498	41 Neutral	HK$187.23M	-3.59	-33.22%	―	-17.32%	55.74%

Qianhai Health Holdings Ltd. Corporate Events

Qianhai Health Books HK$60.4 Million Onerous Contract Provision on Electronics Products

Qianhai Health Holdings Limited has issued a supplemental announcement to its 2024 annual results and annual report, disclosing additional details on a HK$60.4 million provision for onerous contracts linked to its electronics-related operations. The group booked approximately HK$42.0 million in further provisions on supplier products originally procured in 2022, as market prices remained below purchase costs and overdue penalties, and recognised these as at 30 November 2024 prior to the disposal of the subsidiary that contracted for these purchases. It also recorded a HK$18.4 million provision on electronic component products acquired in 2024 after sharp price declines in a highly volatile market left contract prices above current market levels, though the company stated that these extra disclosures do not otherwise change its reported 2024 results or annual report.

The most recent analyst rating on (HK:0911) stock is a Hold with a HK$0.27 price target. To see the full list of analyst forecasts on Qianhai Health Holdings Ltd. stock, see the HK:0911 Stock Forecast page.