Human Health Holdings Ltd. (1419) AI Stock Analysis

• Market Cap: HK$368.17M
• Dividend Yield: 2.89%
• Average Volume (3M): 91.07K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.08
• Revenue Growth: -0.69%
• EPS Growth: N/A
• Country: HK
• Employees: 388
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Care Facilities
• EPS (TTM): 0.04
• Shares Outstanding: 379,552,220
• 10 Day Avg. Volume: 147,000
• 30 Day Avg. Volume: 91,066
• PEG Ratio: -1.11
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.59
• 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$1.00
• Price Target Upside: 3.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: HK$1.00 ▲(3.09%Upside)

The overall score reflects significant financial challenges with declining revenue and income, negatively impacting cash flow. While technical analysis indicates some positive momentum, the high RSI suggests caution. Valuation remains moderate with a reasonable P/E ratio and dividend yield, but financial instability could influence future performance.

Human Health Holdings Ltd. Business Overview & Revenue Model

Company Description

Human Health Holdings Limited, an investment holding company, provides healthcare services in Hong Kong. The company offers general practice services, including general consultation, diagnostics and preventative health, minor procedure, vaccination, physical check-up, health education, occupational health advisory, Chinese medicine, work injury assessment, telemedicine, COVID-19 related, outreach services, and healthcare related services and products. It also provides specialty services in the areas of general surgery, orthopedics and traumatology, ophthalmology, otorhinolaryngology, pediatrics, obstetrics and gynecology, gastroenterology and hepatology, respiratory medicine, cardiology, pediatric surgery, dermatology and venereology, psychiatry, radiology, urology, nephrology, neurosurgery, anaesthesiology, and oncology, as well as physiotherapy, clinical psychology, medical aesthetics, nutritionist, health and wellness, endoscopy, and medical diagnostics. In addition, the company offers dental services comprising general dentistry, dental implant, 3D guided implant surgery, crown and bridge, periodontal treatment, prosthodontics, oral surgery, orthodontics, endodontics, cosmetic dentistry, teeth whitening, veneers and laser dentistry, advanced oral and maxillofacial surgery, CAD/CAM dentistry, panoramic radiography, and cone-beam computed tomography services. Further, it provides doctors and dentists agreements management, and medical imaging services. As of June 30, 2021, the company operated 58 medical centers and 103 service points. The company was founded in 1997 and is headquartered in Kowloon, Hong Kong. Human Health Holdings Limited is a subsidiary of Treasure Group Global Limited.

How the Company Makes Money

Human Health Holdings Ltd. generates revenue through its extensive network of medical centers by providing medical consultations, diagnostic testing, and health assessment services. The company's key revenue streams include fees for medical consultations and diagnostic services offered to both individual patients and corporate clients. Additionally, Human Health Holdings Ltd. partners with various insurance companies to offer services covered under health insurance plans, which contributes significantly to its earnings. The company also leverages its reputation and network to secure corporate health contracts, providing tailored healthcare solutions to businesses, which further enhances its revenue.

Human Health Holdings Ltd. Financial Statement Overview

Summary

Human Health Holdings Ltd. faces significant financial challenges with declining revenue and net income, impacting its income statement and cash flow. Despite a strong balance sheet with low leverage and strong liquidity, issues with negative free cash flow and reduced operating cash flow raise concerns about cash generation capabilities.

Income Statement

The income statement shows a concerning trend with declining revenues and profits over the past year. Revenue fell by approximately 41% from the previous year, and net income dropped by 87%. Gross profit margin stands at 45.7% and net profit margin at 4.1%, indicating the company's ability to manage costs relative to its revenue. However, the steep decline in both revenue and net income highlights significant financial challenges.

Balance Sheet

The balance sheet remains relatively strong, with a low debt-to-equity ratio of 0.19 and an equity ratio of 72.6%, indicating a solid financial foundation with low leverage. The company maintains a strong cash position, evidenced by a net debt of -343 million, suggesting a healthy liquidity buffer. Despite these strengths, the decline in stockholders' equity from the previous year is a concern.

Cash Flow

Cash flow analysis reveals significant issues, with free cash flow turning negative (-28 million) from a positive position in the previous year, indicating potential liquidity challenges. The operating cash flow to net income ratio is low, highlighting inefficiencies in converting profits into cash. The sharp decline in operating cash flow further exacerbates concerns about the company's cash generation capabilities.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	611.42M	590.82M	1.00B	1.12B	654.71M	453.74M
Gross Profit	279.63M	269.85M	593.24M	659.68M	376.69M	189.84M
EBITDA	37.19M	104.06M	323.46M	513.25M	238.36M	42.16M
Net Income	20.98M	24.19M	180.84M	375.31M	144.45M	-40.37M
Balance Sheet
Total Assets	1.03B	1.06B	1.26B	1.16B	612.39M	427.99M
Cash, Cash Equivalents and Short-Term Investments	479.84M	489.58M	641.26M	270.33M	162.83M	137.19M
Total Debt	132.16M	146.46M	182.49M	188.47M	67.08M	102.17M
Total Liabilities	258.48M	289.71M	455.27M	416.67M	202.26M	168.94M
Stockholders Equity	771.37M	766.67M	808.22M	741.95M	410.13M	259.05M
Cash Flow
Free Cash Flow	69.49M	-28.17M	580.24M	219.30M	71.44M	26.03M
Operating Cash Flow	85.25M	11.34M	664.26M	295.81M	85.49M	37.50M
Investing Cash Flow	201.63M	-47.63M	-335.34M	-203.22M	-4.77M	-18.99M
Financing Cash Flow	-73.29M	-122.66M	-178.28M	-67.45M	-59.30M	-64.75M

Human Health Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1419, the sentiment is Positive. The current price of 0.97 is above the 20-day moving average (MA) of 0.85, above the 50-day MA of 0.83, and above the 200-day MA of 0.79, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 71.09 is Negative, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1419.

Human Health Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0722	78 Outperform	HK$384.46M	9.12	5.95%	9.79%	0.81%	27.55%
2293	68 Neutral	HK$229.40M	9.60	10.72%	4.46%	-22.12%	-28.95%
2189	64 Neutral	HK$445.00M	20.09	5.02%	11.24%	-15.22%	-21.37%
3689	61 Neutral	HK$635.35M	38.23	1.07%	4.68%	-1.20%	-87.51%
1419	55 Neutral	HK$368.17M	17.72	2.73%	2.89%	-0.69%	―
Sector *	52 Neutral	$7.61B	0.10	-63.03%	2.08%	16.34%	0.32%
8143	51 Neutral	HK$146.55M	―	-18.22%	―	-56.16%	62.50%

Human Health Holdings Ltd. Corporate Events

Human Health Holdings Extends Limited Partnership Term Amid Market Challenges

Human Health Holdings Ltd. announced a further extension of the term for its investment in a Limited Partnership until June 30, 2026. This decision, made in light of challenging market conditions in the PRC, allows the company to explore better exit options without incurring additional management fees, which is considered beneficial for the company and its shareholders.