New Century Healthcare Holding Co. Ltd. (1518) AI Stock Analysis

• Market Cap: HK$341.67M
• Dividend Yield: 3.16%
• Average Volume (3M): 149.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: -21.31%
• EPS Growth: -149.92%
• Country: HK
• Employees: 1,255
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): -0.14
• Shares Outstanding: 490,025,000
• 10 Day Avg. Volume: 100
• 30 Day Avg. Volume: 149,133
• PEG Ratio: -0.23
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 3.98
• 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: 54 Neutral
• Price Target: HK$0.50 ▼(-37.50% Downside)

New Century Healthcare's stock score is primarily impacted by its mixed financial performance and bearish technical indicators. The stable balance sheet provides some support, but declining profitability and cash flow, along with a negative P/E ratio, weigh heavily on the score. The oversold RSI suggests potential for a rebound, but risks remain significant.

Positive Factors

Favorable Debt-to-Equity Ratio

A favorable debt-to-equity ratio suggests that the company maintains a stable capital structure, providing financial stability and flexibility for future growth.

Stable Gross Profit Margins

Stable gross profit margins indicate consistent cost management and pricing power, which are crucial for sustaining profitability in the long term.

Healthcare Technology Partnerships

Collaborations with technology firms can improve operational efficiency and expand market reach, supporting long-term growth and competitive advantage.

Negative Factors

Declining Revenue

A declining revenue trend can indicate challenges in market demand or competitive pressures, potentially impacting the company's ability to grow and invest in future opportunities.

Weak Cash Flow Performance

Weak cash flow limits the company's ability to reinvest in its business, pay down debt, or return capital to shareholders, posing a risk to financial flexibility.

Decreased Net Profit Margins

Decreased net profit margins reflect reduced profitability, which can hinder the company's ability to generate returns for shareholders and invest in growth initiatives.

New Century Healthcare Holding Co. Ltd. Business Overview & Revenue Model

Company Description

New Century Healthcare Holding Co. Ltd. (1518) is a leading healthcare service provider based in China, primarily focused on delivering high-quality medical services and products. The company operates in various sectors, including hospital management, healthcare technology, and integrated healthcare services. Its core offerings include outpatient and inpatient services, diagnostic services, and a range of health-related products designed to enhance patient care and streamline healthcare operations.

How the Company Makes Money

New Century Healthcare generates revenue through multiple streams, primarily from its hospital management services, which include patient fees for medical consultations, treatments, and surgeries. The company also earns income from diagnostic services, such as laboratory tests and imaging services, that are essential for patient care. Additionally, New Century Healthcare has developed partnerships with various healthcare technology firms, enhancing its service offerings and expanding its market reach. These collaborations often lead to improved operational efficiency and increased patient throughput, further contributing to the company's profitability.

New Century Healthcare Holding Co. Ltd. Financial Statement Overview

Summary

New Century Healthcare's financial performance is mixed. The income statement shows declining revenue and profitability, while the balance sheet reflects moderate leverage and stability. The concerning cash flow situation, with a significant drop in operating cash flow, raises liquidity concerns.

Income Statement

New Century Healthcare has shown a declining revenue trend, with a significant drop from 2023 to 2024. Gross profit margins have remained relatively stable, but net profit margins have decreased due to lower net income. EBIT and EBITDA margins also reflect a decrease, indicating a challenge in maintaining operational efficiency.

Balance Sheet

The company has a favorable debt-to-equity ratio, indicating moderate leverage, and shows a healthy equity ratio, suggesting stability in its capital structure. However, the return on equity has been negatively impacted by the reduction in net income, which is a concern for profitability.

Cash Flow

Cash flow performance has weakened, with operating cash flow dropping significantly from 2023 to 2024. There is no available data for free cash flow growth or its ratio to net income, but the absence of positive cash flow trends is a risk factor for financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	735.07M	846.50M	933.07M	636.46M	632.57M	512.78M
Gross Profit	265.88M	344.96M	407.09M	202.14M	198.74M	135.76M
EBITDA	89.84M	170.68M	234.18M	-209.54M	41.78M	-218.17M
Net Income	-43.05M	47.38M	84.16M	-297.73M	-101.46M	-371.38M
Balance Sheet
Total Assets	836.78M	939.13M	944.39M	901.38M	1.27B	1.47B
Cash, Cash Equivalents and Short-Term Investments	331.90M	354.52M	304.31M	226.08M	223.84M	299.21M
Total Debt	172.62M	185.83M	206.07M	217.02M	280.24M	361.10M
Total Liabilities	396.45M	430.26M	492.63M	540.03M	586.66M	659.19M
Stockholders Equity	478.86M	553.83M	522.28M	438.26M	737.46M	838.63M
Cash Flow
Free Cash Flow	57.38M	114.10M	148.21M	66.16M	9.10M	-18.73M
Operating Cash Flow	75.98M	135.92M	158.92M	76.28M	22.25M	-4.22M
Investing Cash Flow	-18.16M	-21.03M	-8.64M	-23.07M	-15.74M	47.82M
Financing Cash Flow	-58.08M	-65.18M	-73.07M	-57.26M	-79.84M	-86.47M

New Century Healthcare Holding Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1518, the sentiment is Negative. The current price of 0.8 is above the 20-day moving average (MA) of 0.70, above the 50-day MA of 0.75, and below the 200-day MA of 0.92, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 44.56 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1518.

New Century Healthcare Holding Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0722	78 Outperform	HK$372.44M	11.68	4.28%	7.10%	-2.88%	-22.83%
3689	71 Outperform	HK$652.07M	7.90	5.33%	8.21%	0.47%	50.46%
2189	65 Neutral	HK$450.00M	19.40	5.24%	4.44%	20.85%	-66.81%
3869	56 Neutral	HK$829.16M	5.69	30.40%	―	2.30%	―
1419	55 Neutral	HK$303.64M	11.53	3.40%	3.75%	9.07%	8.95%
1518	54 Neutral	HK$341.67M	-7.31	-8.40%	3.16%	-21.31%	-149.92%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

New Century Healthcare Holding Co. Ltd. Corporate Events

New Century Healthcare Ends Voting Agreement with Shareholder

New Century Healthcare Holding Co. Ltd. announced the termination of a voting agreement between its chairman and CEO, Mr. Jason Zhou, and substantial shareholder Ms. Liang Yanqing. This agreement, initially established in 2016 and extended to 2028, allowed Ms. Liang to follow Mr. Zhou’s voting directions. The termination, effective November 25, 2025, concludes all legal obligations under the agreement, allowing Ms. Liang independent voting rights. This change may impact the company’s governance dynamics and is a significant shift in shareholder relations.