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Life Healthcare Group Limited (HK:0928)
:0928
Hong Kong Market
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Life Healthcare Group (0928) AI Stock Analysis

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HK:0928

Life Healthcare Group

(0928)

Rating:58Neutral
Price Target:
Life Healthcare Group's stock is supported by strong financial recovery and undervaluation, making it potentially attractive to value investors. However, persistent cash flow issues and bearish technical indicators present risks and may result in continued stock pressure. The company must focus on improving liquidity to enhance its long-term outlook.

Life Healthcare Group (0928) vs. iShares MSCI Hong Kong ETF (EWH)

Life Healthcare Group Business Overview & Revenue Model

Company DescriptionLife Healthcare Group Limited, an investment holding company, provides genetic testing and health data analysis services in the People's Republic of China and Hong Kong. The company operates through two segments, Healthcare Products and Services Business, and Money Lending Business. It offers a range of services and solutions for medical and health administration through its non-invasive tumor genetic testing technology. The company also engages in apparel retail; securities trading and investment; and money lending activities. In addition, it provides corporate administrative and healthcare services. The company was formerly known as Tack Fiori International Group Limited and changed its name to Life Healthcare Group Limited in June 2017. Life Healthcare Group Limited was incorporated in 2001 and is based in Wan Chai, Hong Kong.
How the Company Makes MoneyLife Healthcare Group generates revenue primarily through its hospital operations, which include patient fees for medical treatments, surgeries, and other healthcare services provided at its facilities. Diagnostic services contribute significantly to its income, with fees charged for laboratory tests and imaging services. The company may also earn from partnerships with healthcare technology firms, enhancing service offerings through innovative solutions. Revenue streams are further supported by investments in healthcare infrastructure projects, yielding returns through long-term leases or service contracts. Strategic collaborations with governmental and private entities can also bolster income through funding and shared service agreements.

Life Healthcare Group Financial Statement Overview

Summary
Life Healthcare Group shows strong recovery in revenue and profitability, with significant improvements in income statement metrics. The balance sheet is robust with low leverage and high equity, indicating financial stability. However, cash flow challenges persist, with negative operating and free cash flows, necessitating strategic focus for improvement.
Income Statement
78
Positive
The company shows a positive trend with significant revenue growth from previous years, alongside improvements in gross profit and net income, indicating a recovery from prior losses. The gross profit margin is healthy at 16.2%, and the net profit margin has improved to 6.8%. The positive EBIT and EBITDA margins further underline the return to profitability. However, the volatility in historical EBIT and EBITDA suggests some operational unpredictability.
Balance Sheet
70
Positive
The balance sheet reflects strong equity, with a high equity ratio of 80.3%, indicating financial stability. The debt-to-equity ratio is low at 0.02, suggesting minimal leverage risk. The return on equity has improved significantly to 5.9%, a positive sign of increasing shareholder value. Despite these strengths, the decrease in cash and short-term investments over time might pose liquidity concerns.
Cash Flow
60
Neutral
While the company has shown improvement in cash flow metrics, the negative operating and free cash flows in recent years are concerning, especially with a free cash flow of -32.3 million in the latest year. The operating cash flow to net income ratio is negative, indicating challenges in converting earnings into cash. The trend of negative cash flows needs addressing to ensure long-term sustainability.
BreakdownMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue233.68M223.85M92.87M102.04M63.80M
Gross Profit37.79M12.05M13.75M26.23M10.01M
EBITDA27.69M-26.72M-29.18M9.68M-17.55M
Net Income15.82M-25.19M-34.46M-4.58M-24.85M
Balance Sheet
Total Assets336.13M264.27M302.94M325.01M303.95M
Cash, Cash Equivalents and Short-Term Investments473.00K17.79M37.40M8.57M187.58M
Total Debt5.71M6.73M422.00K715.00K1.88M
Total Liabilities70.08M31.27M39.56M30.32M54.41M
Stockholders Equity269.85M237.50M262.28M290.58M247.43M
Cash Flow
Free Cash Flow-32.32M-134.69M96.85M-181.34M173.59M
Operating Cash Flow-32.32M-134.48M96.86M-181.34M173.59M
Investing Cash Flow1.00K94.86M-67.83M-34.46M5.00K
Financing Cash Flow17.39M27.40M-830.00K28.29M-1.91M

Life Healthcare Group Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.09
Price Trends
50DMA
0.09
Negative
100DMA
0.06
Positive
200DMA
0.06
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
49.29
Neutral
STOCH
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0928, the sentiment is Neutral. The current price of 0.09 is below the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.09, and above the 200-day MA of 0.06, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.29 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0928.

Life Healthcare Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
HK$217.33M9.0910.72%4.46%-22.12%-28.95%
60
Neutral
HK$17.07B5.63-7.44%2.87%11.55%-28.15%
58
Neutral
HK$173.94M12.214.95%-25.28%
51
Neutral
HK$146.55M-18.22%-56.16%62.50%
42
Neutral
HK$172.08M-305.54%-35.16%-37.27%
€19.44M-18.59%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0928
Life Healthcare Group
0.09
0.04
80.00%
HK:0673
China Health Group
0.36
-0.38
-51.35%
HK:0648
China Wah Yan Healthcare
HK:8143
Good Fellow Healthcare Holdings Limited
0.12
-0.01
-7.69%
DE:VNL1
China Health Group Inc.
0.01
0.00
0.00%
HK:2293
Bamboos Health Care Holdings Ltd
0.56
>-0.01
-1.75%

Life Healthcare Group Corporate Events

King International Faces Legal Dispute Over Unauthorized Agreements
Apr 28, 2025

King International Investment Limited, formerly known as Life Healthcare Group Limited, is dealing with a legal dispute involving a winding-up petition filed by Mianyang Zhongshang Fule Wine Co., Ltd. The dispute centers around a sale of goods agreement for Kunsha Aged Liquor, with allegations against former directors for unauthorized agreements. The company is questioning the validity of these agreements and is seeking legal advice to address potential financial losses.

King International Partners with Mingyuan for Strategic Market Expansion
Apr 28, 2025

King International Investment Limited has entered into a strategic cooperation framework agreement with Mingyuan Business School Co., Ltd. to enhance the marketing and operation of its liquor and healthcare products in Mainland China. This collaboration aims to leverage Mingyuan’s marketing expertise to improve market penetration and brand value, creating mutual benefits and synergies for both parties over a three-year term.

King International Addresses Allegations and Ensures Compliance
Apr 24, 2025

King International Investment Limited, formerly known as Life Healthcare Group Limited, is addressing potential allegations against a former executive director and a non-executive director related to unauthorized agreements and transactions. The company has implemented remedial measures, including seeking legal advice and suspending the non-executive director, to mitigate any potential impact on its operations and financial position. Despite the petition for winding up being withdrawn, the company is taking steps to ensure compliance and protect its interests.

King International Investment Limited Announces New Board Composition
Apr 24, 2025

King International Investment Limited, formerly known as Life Healthcare Group Limited, has announced the composition of its board of directors effective from April 24, 2025. The board includes executive, non-executive, and independent non-executive directors, with Mr. Leng Yueyingtan serving as Chairman. The company has also established four board committees: Audit, Nomination, Remuneration, and Fund Management, with specific directors assigned to each committee.

King International Investment Faces Board Resignation and Compliance Challenges
Apr 10, 2025

King International Investment Limited, formerly known as Life Healthcare Group Limited, announced the resignation of Ms. Yang Xilin as an independent non-executive director and chairman of several board committees, effective April 10, 2025. This resignation has led to non-compliance with certain listing rules, as the company no longer meets the required qualifications and committee compositions. The company plans to fill the vacancy within three months and has appointed Mr. Liu Zhong as the new chairman of the Remuneration Committee.

King International Investment Limited Announces Board Restructuring
Apr 10, 2025

King International Investment Limited, formerly known as Life Healthcare Group Limited, has announced changes to its board of directors effective April 10, 2025. The company has appointed Mr. Leng Yueyingtan as Chairman and has restructured its board committees, which include the Audit, Nomination, Remuneration, and Fund Management Committees. These changes reflect a strategic move to enhance governance and operational oversight, potentially impacting the company’s market positioning and stakeholder engagement.

King International Investment Withdraws Winding-Up Petition
Apr 2, 2025

King International Investment Limited, formerly known as Life Healthcare Group Limited, announced the withdrawal of a winding-up petition filed by Mianyang Zhongshang Fule Wine Co., Ltd. The Hong Kong High Court granted leave for the petitioner to withdraw the petition, and the company plans to conduct an audit and due diligence on the disputed transaction. The company will keep shareholders and potential investors informed of any developments.

King International Investment Calls for EGM to Revise Articles of Association
Feb 14, 2025

King International Investment Limited, formerly known as Life Healthcare Group Limited, has announced an extraordinary general meeting to be held on 7 March 2025, where shareholders will vote on proposed amendments to the company’s Articles of Association. The board seeks approval for the adoption of a revised set of articles, which consolidates previous amendments, to streamline the company’s governance framework.

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 22, 2025