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

• Market Cap: HK$390.48M
• Dividend Yield: 2.76%
• Average Volume (3M): 44.27K
• Price to Earnings (P/E): 7.5
• Beta (1Y): >-0.01
• Revenue Growth: -10.82%
• EPS Growth: -44.11%
• Country: HK
• Employees: 1,255
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Care Facilities
• EPS (TTM): 0.05
• Shares Outstanding: 490,025,000
• 10 Day Avg. Volume: 84,200
• 30 Day Avg. Volume: 44,266
• PEG Ratio: -0.18
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.01
• 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

• Rating: 59 Neutral
• Price Target: HK$1.00 ▲(20.48%Upside)

The overall score is primarily impacted by declining financial performance and bearish technical indicators. Despite a favorable valuation, liquidity and momentum concerns weigh heavily on the stock's outlook.

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

Company Description

New Century Healthcare Holding Co. Limited, an investment holding company, provides healthcare services to women and children in the People's Republic of China. The company offers paediatric, obstetric, and gynaecologic specialty services, as well as hospital consulting services. It also provides online healthcare services, as well as operates cafeteria and gift shop at its medical institutions. The company was founded in 2002 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

New Century Healthcare Holding Co. Ltd. generates revenue through its network of hospitals and clinics by providing a variety of healthcare services. The company earns income from outpatient and inpatient services, which include consultations, medical treatments, and surgeries for pediatric and obstetric care. Additionally, the company offers health management services, further contributing to its revenue streams. The company may also generate revenue through strategic partnerships with medical suppliers and insurance companies, enhancing its service offerings and patient reach. Key factors contributing to its earnings include the growing demand for specialized healthcare services in China, particularly in pediatric and maternal care, and the company's ability to maintain a strong reputation in delivering high-quality medical services.

New Century Healthcare Holding Co. Ltd. Financial Statement Overview

Summary

New Century Healthcare's financial performance is mixed. While the balance sheet shows stability with a favorable debt-to-equity ratio, declining revenue and profitability from the income statement, along with weakened cash flow, highlight challenges in operational efficiency and liquidity.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	846.50M	933.07M	636.46M	632.57M	512.78M
Gross Profit	344.96M	407.09M	202.14M	198.74M	135.76M
EBITDA	170.68M	234.18M	-209.54M	41.78M	-218.17M
Net Income	47.38M	84.16M	-291.57M	-85.26M	-377.53M
Balance Sheet
Total Assets	939.13M	944.39M	901.38M	1.27B	1.47B
Cash, Cash Equivalents and Short-Term Investments	354.52M	304.31M	226.08M	223.84M	299.21M
Total Debt	185.83M	206.07M	217.02M	280.24M	361.10M
Total Liabilities	430.26M	492.63M	540.03M	586.66M	659.19M
Stockholders Equity	553.83M	522.28M	438.26M	737.46M	838.63M
Cash Flow
Free Cash Flow	114.10M	148.21M	66.16M	9.10M	-18.73M
Operating Cash Flow	135.92M	158.92M	76.28M	22.25M	-4.22M
Investing Cash Flow	-21.03M	-8.64M	-23.07M	-15.74M	47.82M
Financing Cash Flow	-65.18M	-73.07M	-57.26M	-79.84M	-86.47M

New Century Healthcare Holding Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 0.83 is below the 20-day moving average (MA) of 0.98, below the 50-day MA of 1.09, and below the 200-day MA of 1.02, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 25.80 is Positive, neither overbought nor oversold. The STOCH value of 25.00 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	75 Outperform	HK$384.46M	8.94	5.95%	11.67%	0.81%	27.55%
3689	66 Neutral	HK$601.91M	36.22	1.07%	8.89%	-1.20%	-87.51%
2189	64 Neutral	HK$450.00M	20.55	5.02%	11.11%	-15.22%	-21.37%
1518	59 Neutral	HK$390.48M	7.53	8.82%	2.76%	-10.82%	-44.11%
1419	58 Neutral	HK$315.03M	15.01	2.73%	3.46%	-0.69%	―
Sector *	51 Neutral	$7.55B	0.30	-61.90%	2.27%	17.11%	1.58%
3869	48 Neutral	HK$718.61M	―	-10.78%	―	-0.95%	-128.35%

New Century Healthcare Holding Co. Ltd. Corporate Events

New Century Healthcare Announces Board Composition

New Century Healthcare Holding Co. Ltd. has announced the composition of its board of directors and their roles, effective June 30, 2025. The board includes executive, non-executive, and independent non-executive directors, with specific members assigned to the audit, remuneration, and nomination committees. This announcement reflects the company’s commitment to structured governance and may influence its strategic decisions and stakeholder relations.

New Century Healthcare Updates Nomination Committee Terms

New Century Healthcare Holding Co. Ltd. has revised the terms of reference for its Nomination Committee, effective June 30, 2025. This update may impact the company’s governance structure and align its practices with the Listing Rules, potentially affecting its market positioning and stakeholder relations.

New Century Healthcare Announces Changes in Nomination Committee

New Century Healthcare Holding Co. Ltd. has announced a change in the composition of its Nomination Committee, effective June 30, 2025. Mr. Jiang Yanfu, an independent non-executive Director, has been re-designated as the chairman of the Nomination Committee, while Ms. Xin Hong, an executive Director, has been appointed as a new member. These changes align with upcoming amendments to the Listing Rules and Corporate Governance Code, aimed at enhancing the Board’s effectiveness and diversity, thereby improving corporate governance practices.

New Century Healthcare’s AGM Resolutions Passed Unanimously

New Century Healthcare Holding Co. Ltd. successfully held its Annual General Meeting on May 22, 2025, where all proposed resolutions were unanimously passed by shareholders. Key resolutions included the adoption of the company’s financial statements, re-election of directors, re-appointment of PricewaterhouseCoopers as auditors, and the declaration of a final dividend, reflecting strong shareholder support and stable governance.

New Century Healthcare Announces 2025 Annual General Meeting Agenda

New Century Healthcare Holding Co. Ltd. has announced its upcoming annual general meeting scheduled for May 22, 2025, in Beijing. Key agenda items include the adoption of the 2024 financial statements, re-election of directors, re-appointment of auditors, and approval of a final dividend of HK$0.0221 per share. The meeting will also consider granting the board a mandate to issue additional shares, which could impact the company’s capital structure and shareholder value.