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Kontafarma China Holdings Ltd (HK:1312)
:1312
Hong Kong Market

Kontafarma China Holdings Ltd (1312) AI Stock Analysis

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HK

Kontafarma China Holdings Ltd

(1312)

Rating:36Underperform
Price Target:
The overall stock score for Kontafarma China Holdings Ltd is low due to significant financial challenges, including declining revenues, poor profitability, and inconsistent cash flows. The technical analysis suggests some buying interest but remains weak overall. Valuation metrics highlight the ongoing losses and lack of profitability, further impacting the stock's attractiveness.

Kontafarma China Holdings Ltd (1312) vs. iShares MSCI Hong Kong ETF (EWH)

Kontafarma China Holdings Ltd Business Overview & Revenue Model

Company DescriptionTongfang Kontafarma Holdings Limited, an investment holding company, engages in the manufacture and sale of prescription drugs and laboratory related products in Mainland China, Singapore, Taiwan, and the United States. The company operates in Pharmaceutical Business and Fitness Business segments. It also offers chemical drugs and prescribed traditional Chinese medicines; operates fitness centers; operates in the franchise business; and provides consultation services for fitness and health activities. The company trades in laboratory related products; researches and develops medical products; and offers corporate advisory services. As of December 31, 2021, it operated 12 fitness centers and 2 yoga center in Taiwan; and 10 fitness centers in Singapore. The company was formerly known as Allied Cement Holdings Limited and changed its name to Tongfang Kontafarma Holdings Limited in August 2016. The company was founded in 1993 and is headquartered in Wan Chai, Hong Kong. Tongfang Kontafarma Holdings Limited is a subsidiary of China Health Management Investment Limited.
How the Company Makes MoneyKontafarma China Holdings Ltd generates revenue through multiple streams within the health and wellness sectors. The company earns income from the manufacturing and sale of pharmaceutical products and nutritional supplements, which constitute a significant portion of its revenue. Additionally, Kontafarma operates fitness and wellness clubs, where it offers memberships and related services, contributing to its earnings. The company may also engage in partnerships or collaborations with other entities in the health industry to expand its market reach and enhance its revenue. Key factors contributing to its earnings include its strategic positioning in the growing health and wellness market in China and its ability to offer a wide range of products and services catering to consumer health needs.

Kontafarma China Holdings Ltd Financial Statement Overview

Summary
Kontafarma China Holdings Ltd is facing significant financial challenges with declining revenues and persistent profitability issues. The balance sheet reflects a weakening financial position due to continuous losses, and cash flow generation is inconsistent, raising operational and financial risks.
Income Statement
34
Negative
Kontafarma China Holdings Ltd shows declining revenue and profitability. The net profit margin is negative due to consistent net losses, and EBIT margins remain poor. Revenue growth has been negative or stagnant, reflecting challenges in maintaining market share or pricing power.
Balance Sheet
42
Neutral
The company's balance sheet indicates moderate leverage with a debt-to-equity ratio that has been manageable, but declining equity due to continuous losses is a concern. The equity ratio suggests moderate reliance on equity financing, but the decreasing total assets are troubling.
Cash Flow
28
Negative
Cash flow performance is weak with erratic operating cash flow and negative free cash flow in recent years. The inability to consistently generate free cash flow raises concerns about the company's capacity to fund operations and growth internally.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
897.52M809.11M894.06M961.09M1.01B
Gross Profit
516.16M471.29M506.22M482.89M555.75M
EBIT
-42.51M0.00-47.06M-42.56M40.39M
EBITDA
-49.93M76.63M26.93M112.18M156.31M
Net Income Common Stockholders
-75.54M-28.84M-109.74M-4.55M-20.09M
Balance SheetCash, Cash Equivalents and Short-Term Investments
90.58M87.66M142.59M183.96M194.79M
Total Assets
1.59B1.73B2.12B2.56B2.54B
Total Debt
297.19M333.82M590.72M728.95M751.29M
Net Debt
216.60M256.16M468.13M560.99M585.48M
Total Liabilities
625.90M665.39M964.16M1.22B1.19B
Stockholders Equity
978.70M1.06B1.10B1.19B1.21B
Cash FlowFree Cash Flow
0.0012.92M-53.84M-49.31M51.02M
Operating Cash Flow
0.0037.12M-2.17M75.07M206.93M
Investing Cash Flow
0.00144.14M121.53M23.24M-206.12M
Financing Cash Flow
0.00-198.81M-137.33M-99.80M19.10M

Kontafarma China Holdings Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.03
Price Trends
50DMA
0.03
Positive
100DMA
0.03
Positive
200DMA
0.03
Negative
Market Momentum
MACD
<0.01
Positive
RSI
57.78
Neutral
STOCH
58.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1312, the sentiment is Positive. The current price of 0.03 is below the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and below the 200-day MA of 0.03, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 57.78 is Neutral, neither overbought nor oversold. The STOCH value of 58.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1312.

Kontafarma China Holdings Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
HK$345.70M7.296.61%5.56%-3.59%4.81%
55
Neutral
HK$192.61M53.14-8.51%8.38%-10.93%-143.61%
54
Neutral
$5.38B3.40-45.06%3.28%16.75%-0.02%
51
Neutral
HK$127.38M-18.22%-56.16%62.50%
36
Underperform
HK$156.20M-7.42%10.93%-159.62%
DE2E5
€7.02B4.238.19%4.46%
47
Neutral
HK$82.99M10.681.60%-4.52%55.30%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1312
Kontafarma China Holdings Ltd
0.03
-0.01
-25.00%
DE:2E5
China Energy Engineering Corp. Ltd. Class H
0.11
0.02
22.22%
HK:8143
Good Fellow Healthcare Holdings Limited
0.12
-0.03
-20.00%
HK:1110
Kingworld Medicines Group Ltd.
0.58
0.05
9.43%
HK:1143
Link-Asia International Medtech Group Ltd.
0.36
-2.01
-84.81%
HK:1181
Tang Palace (China) Holdings Limited
0.17
-0.23
-57.50%

Kontafarma China Holdings Ltd Corporate Events

Kontafarma China Holdings Announces 2025 AGM Agenda
Apr 29, 2025

Kontafarma China Holdings Limited has announced its upcoming annual general meeting, scheduled for June 24, 2025, in Hong Kong. The meeting will address several key agenda items, including the adoption of the company’s audited financial statements for 2024, the re-election of directors, the authorization of directors’ fees for 2025, and the re-appointment of BDO Limited as the independent auditor. Additionally, the meeting will consider resolutions to authorize the directors to allot and issue shares, with certain limitations, to enhance the company’s operational flexibility.

Kontafarma China Reschedules 2025 AGM and Adjusts Book Closure Period
Apr 25, 2025

Kontafarma China Holdings Limited has announced a rescheduling of its 2025 Annual General Meeting (AGM) and a change in the book closure period. Originally set for June 5, 2025, the AGM will now take place on June 24, 2025, due to administrative reasons. Consequently, the book closure period, initially from May 30 to June 5, 2025, will now be from June 18 to June 24, 2025. This adjustment affects the period during which no share transfers will be registered, impacting shareholders’ eligibility to attend and vote at the AGM.

Kontafarma China Holdings Reports Increased Revenue but Higher Losses in 2024
Mar 28, 2025

Kontafarma China Holdings Ltd reported its audited consolidated results for the year ended December 31, 2024, showing a revenue increase to HK$897.5 million from HK$809.1 million in 2023. Despite the revenue growth, the company experienced a net loss of HK$99 million, up from a HK$61.1 million loss the previous year, attributed to increased distribution, selling, and administrative expenses. The announcement highlights the financial challenges faced by the company, impacting its market positioning and raising concerns for stakeholders about the company’s future profitability and operational efficiency.

Kontafarma China Holdings to Review Annual Results and Dividend
Mar 17, 2025

Kontafarma China Holdings Limited has announced a board meeting scheduled for March 28, 2025, to discuss and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the potential payment of a final dividend, which could impact shareholder returns and reflect the company’s financial health.

Kontafarma China Announces Increased Losses Despite Revenue Growth
Mar 11, 2025

Kontafarma China Holdings Ltd has issued a profit warning, projecting a consolidated net loss between HK$79.2 million and HK$118.8 million for FY 2024, a significant increase from the previous year’s loss. The loss is attributed to the absence of a one-off gain from subsidiary disposal and an impairment on intangible assets due to slow recovery in its Taiwan fitness business. Despite this, the company anticipates an increase in overall revenue and gross profit, driven by rising demand for its pharmaceutical products and effective marketing strategies, as well as a rebound in its Singapore fitness business and reduced administrative expenses.

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.