PW Medtech Group Ltd. (1358) AI Stock Analysis

• Market Cap: HK$1.84B
• Dividend Yield: 7.76%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.27
• Revenue Growth: 21.39%
• EPS Growth: -0.57%
• Country: HK
• Employees: 1,415
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.05
• Shares Outstanding: 1,473,589,100
• 10 Day Avg. Volume: 754,100
• 30 Day Avg. Volume: 1,124,400
• PEG Ratio: -94.03
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 1.89
• P/FCF Ratio: 5.88
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: HK$1.50 ▲(19.05% Upside)

PW Medtech Group Ltd. is well-positioned with strong financial performance and a solid valuation. The primary concern is the recent decline in cash flow, which needs to be addressed to maintain long-term growth. Technical indicators suggest stable but cautious market sentiment.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective sales strategies, positioning the company well for future expansion.

Balance Sheet Strength

A strong balance sheet with low leverage enhances financial stability and provides flexibility for strategic investments and growth initiatives.

Profitability Metrics

Consistent profitability with strong margins demonstrates efficient cost management and a competitive advantage in pricing power.

Negative Factors

Operating Cash Flow Decline

The decline in operating cash flow raises concerns about cash generation capabilities, which could impact the company's ability to fund operations and growth.

Cash Flow Management

Challenges in cash flow management could hinder operational efficiency and limit the company's ability to invest in new opportunities.

Increase in Liabilities

An increase in liabilities may indicate rising financial obligations, which could pressure the company's financial health if not managed properly.

PW Medtech Group Ltd. Business Overview & Revenue Model

Company Description

PW Medtech Group Limited, an investment holding company, operates as a medical device company in the People's Republic of China. The company manufactures and sells infusion sets, such as non-PVC-based infusion sets, precision filter infusion sets, light resistant infusion sets, intravenous cannula products, and insulin needles and pens. It also provides property management services. The company was formerly known as Pyholding Limited. PW Medtech Group Limited was founded in 1997 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

PW Medtech generates revenue primarily through the sale of its medical devices and equipment across its core product lines. The company has established a diversified revenue model comprising direct sales to hospitals and healthcare institutions, as well as partnerships with distributors that expand its market reach. Key revenue streams include orthopedic implants, surgical instruments, and wound care products. Additionally, PW Medtech benefits from ongoing demand for its products in the rapidly growing healthcare sector in China, alongside strategic collaborations that enhance its distribution capabilities and product development initiatives.

PW Medtech Group Ltd. Financial Statement Overview

Summary

PW Medtech Group Ltd. shows strong revenue growth and solid profitability with a robust balance sheet. However, the recent decline in operating cash flow is a concern that needs addressing to ensure long-term sustainability.

Income Statement

PW Medtech Group Ltd. demonstrates strong revenue growth, with total revenue increasing from $247 million in 2020 to $768 million in 2024. Gross profit margins have been solid, averaging around 55% over the last few years. The net profit margin is also robust, with a net income of $150 million in 2024. The EBIT and EBITDA margins have been improving, indicating effective cost management. The company has shown resilience with consistent growth, although a slight decrease in EBIT in 2024 needs monitoring.

Balance Sheet

The company's balance sheet is very strong, with a low debt-to-equity ratio due to minimal total debt compared to substantial stockholders' equity. The equity ratio is favorable, reflecting financial stability. The substantial cash reserves, evidenced by significant cash and short-term investments, provide a buffer, enhancing liquidity. The growth in stockholders' equity is a positive indicator, although the increase in liabilities in 2024 should be observed.

Cash Flow

Cash flow management appears to be a challenge, as the operating cash flow dropped to zero in 2024 from $211 million in 2023. Despite this, the company has maintained positive free cash flow historically, signifying potential for recovery. The lack of operating and free cash flow in the most recent period raises concerns about operational efficiency and cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	844.86M	768.90M	675.08M	536.83M	271.40M	247.35M
Gross Profit	444.61M	419.45M	380.90M	298.82M	166.06M	148.60M
EBITDA	280.13M	270.97M	329.48M	175.49M	77.98M	2.94M
Net Income	146.56M	150.78M	153.18M	106.04M	739.12M	631.81M
Balance Sheet
Total Assets	5.29B	5.16B	5.15B	4.99B	3.92B	5.28B
Cash, Cash Equivalents and Short-Term Investments	1.78B	1.69B	1.59B	1.39B	2.41B	1.70B
Total Debt	20.28M	12.07M	1.13M	4.24M	2.44M	30.46M
Total Liabilities	433.20M	357.56M	327.06M	351.56M	122.64M	175.32M
Stockholders Equity	4.00B	3.97B	4.04B	3.95B	3.79B	5.11B
Cash Flow
Free Cash Flow	141.79M	246.34M	129.12M	216.77M	25.92M	70.33M
Operating Cash Flow	179.83M	318.43M	211.03M	269.23M	37.24M	78.20M
Investing Cash Flow	-26.24M	-20.32M	-26.66M	-1.08B	2.64B	2.07B
Financing Cash Flow	-208.47M	-210.66M	17.53M	-85.16M	-2.09B	-578.40M

PW Medtech Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1358, the sentiment is Negative. The current price of 1.26 is below the 20-day moving average (MA) of 1.34, below the 50-day MA of 1.39, and above the 200-day MA of 1.22, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 29.66 is Positive, neither overbought nor oversold. The STOCH value of 24.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1358.

PW Medtech Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9997	83 Outperform	HK$10.87B	17.90	23.40%	2.84%	6.51%	4.85%
1358	74 Outperform	HK$1.84B	11.94	3.76%	7.76%	21.39%	-0.57%
3600	74 Outperform	HK$5.07B	10.68	17.42%	3.66%	6.87%	18.37%
1501	70 Neutral	HK$5.46B	26.37	10.31%	―	14.06%	3.02%
1066	68 Neutral	HK$23.34B	11.07	8.34%	4.66%	0.74%	2.13%
6699	56 Neutral	HK$10.44B	221.07	―	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

PW Medtech Group Ltd. Corporate Events

PW Medtech Suspends Review Process for Sichuan Ruijian Medical’s Beijing Listing

PW Medtech Group Ltd. announced the voluntary suspension of the review process for the subsequent listing of its subsidiary, Sichuan Ruijian Medical, on the Beijing Stock Exchange. This decision was made due to the impending expiration of the financial statement cut-off date, with the review status now adjusted to suspension. The listing process remains ongoing, subject to market conditions and regulatory approvals, and shares of Sichuan Ruijian Medical remain suspended from trading on the NEEQs.