Rici Healthcare Holdings Ltd. (1526) AI Stock Analysis

• Market Cap: HK$1.42B
• Dividend Yield: 5%
• Average Volume (3M): 144.79K
• Price to Earnings (P/E): 4.9
• Beta (1Y): 0.27
• Revenue Growth: -3.56%
• EPS Growth: -17.45%
• Country: HK
• Employees: 8,908
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.04
• Shares Outstanding: 1,590,324,000
• 10 Day Avg. Volume: 124,800
• 30 Day Avg. Volume: 144,786
• PEG Ratio: -0.36
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 3.20
• 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: 66 Neutral
• Price Target: HK$1.00 ▲(1.01% Upside)

Rici Healthcare Holdings Ltd. scores well on valuation due to its low P/E ratio and attractive dividend yield, making it appealing for value and income investors. However, financial performance is mixed, with strong profitability offset by revenue decline and high leverage. Technical indicators suggest a bearish trend, which could limit short-term upside potential.

Positive Factors

Profitability

High profit margins indicate efficient cost management and strong pricing power, supporting long-term profitability and competitiveness.

Return on Equity

A high return on equity suggests effective use of shareholder capital, enhancing investor confidence and supporting sustainable growth.

Operational Efficiency

Strong operational efficiency reflects the company's ability to convert revenue into profit, ensuring long-term financial health and resilience.

Negative Factors

Revenue Growth Challenges

Declining revenue growth suggests potential market saturation or competitive pressures, necessitating strategic initiatives to drive future expansion.

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth opportunities.

Cash Flow Management

Lack of free cash flow growth indicates potential liquidity issues, which could affect the company's ability to sustain operations and fund future growth.

Rici Healthcare Holdings Ltd. Business Overview & Revenue Model

Company Description

Rici Healthcare Holdings Ltd. (1526) is a healthcare investment company based in Hong Kong, primarily focusing on the development, manufacturing, and distribution of medical devices and healthcare products. The company operates within the healthcare sector, with a portfolio that includes innovative medical technologies, diagnostic tools, and healthcare solutions aimed at improving patient outcomes and enhancing the efficiency of healthcare delivery.

How the Company Makes Money

Rici Healthcare generates revenue through multiple streams, including the sale of its proprietary medical devices and healthcare products to hospitals, clinics, and healthcare providers. The company also earns income from partnerships with other healthcare organizations for research and development projects, licensing agreements, and collaborative ventures aimed at bringing new medical technologies to market. Additionally, Rici Healthcare may benefit from government contracts and grants related to public health initiatives, further contributing to its overall revenue. The company's focus on innovation and quality in healthcare solutions positions it to capitalize on the growing demand for advanced medical technologies and services.

Rici Healthcare Holdings Ltd. Financial Statement Overview

Summary

Rici Healthcare Holdings Ltd. demonstrates strong profitability with solid profit margins and return on equity. However, the decline in revenue growth and high leverage pose potential risks. Cash flow management is a critical area for improvement, as recent metrics indicate challenges in maintaining liquidity.

Income Statement

Rici Healthcare Holdings Ltd. shows a strong gross profit margin of 39.9% and a net profit margin of 10.2% for the latest year. Revenue showed a slight decline of 2.3% compared to the previous year, indicating some challenges in maintaining growth. The EBIT margin is healthy at 20.8%, and the EBITDA margin stands at 27.3%, reflecting solid operational efficiency. While profitability remains robust, the recent revenue contraction highlights the need for strategic growth initiatives.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 1.71, indicating leverage that could pose risks if not managed carefully. However, the return on equity is strong at 22.1%, showing effective use of equity capital. With an equity ratio of 27.7%, the company maintains a balanced asset structure, though the high debt level suggests potential volatility in financial stability.

Cash Flow

Rici Healthcare's free cash flow is currently zero, which poses concerns about liquidity and operational cash coverage. The previous year showed a positive operating cash flow to net income ratio of 2.27, indicating healthy cash generation relative to net income in the past. The absence of free cash flow growth in the latest year suggests cash flow management may need attention to sustain operations and fund growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.27B	2.92B	2.99B	2.38B	2.38B	1.93B
Gross Profit	975.27M	1.17B	1.25B	927.20M	975.22M	580.66M
EBITDA	651.40M	798.69M	1.07B	572.61M	682.80M	234.75M
Net Income	240.30M	297.32M	363.80M	290.79M	181.55M	-7.88M
Balance Sheet
Total Assets	4.72B	4.86B	4.64B	4.57B	4.54B	4.21B
Cash, Cash Equivalents and Short-Term Investments	1.03B	1.12B	811.21M	720.14M	784.36M	574.86M
Total Debt	2.25B	2.30B	2.27B	2.30B	2.74B	2.90B
Total Liabilities	3.30B	3.48B	3.52B	3.66B	3.95B	3.88B
Stockholders Equity	1.40B	1.35B	1.13B	953.92M	677.50M	505.81M
Cash Flow
Free Cash Flow	311.65M	584.35M	487.07M	396.33M	356.41M	77.71M
Operating Cash Flow	358.39M	790.58M	826.29M	706.37M	681.07M	444.63M
Investing Cash Flow	-15.50M	-140.02M	-147.00M	-273.99M	-269.13M	-355.44M
Financing Cash Flow	-81.44M	-351.23M	-592.72M	-495.23M	-193.99M	169.32M

Rici Healthcare Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1526, the sentiment is Negative. The current price of 0.99 is above the 20-day moving average (MA) of 0.97, below the 50-day MA of 0.99, and below the 200-day MA of 1.07, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 30.09 is Neutral, neither overbought nor oversold. The STOCH value of 14.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1526.

Rici Healthcare Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3689	71 Outperform	HK$652.07M	7.90	5.33%	8.21%	0.47%	50.46%
1526	66 Neutral	HK$1.42B	4.87	20.47%	5.00%	-3.56%	-17.45%
9906	57 Neutral	HK$1.05B	84.95	1.87%	―	-13.22%	-69.35%
3869	56 Neutral	HK$829.16M	5.70	30.40%	―	2.30%	―
1419	55 Neutral	HK$303.64M	11.53	3.40%	3.75%	9.07%	8.95%
3886	52 Neutral	HK$1.69B	-11.79	-4.66%	0.48%	-0.55%	45.36%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Rici Healthcare Holdings Ltd. Corporate Events

Rici Healthcare Acquires Shanghai Property in Major Transaction

Rici Healthcare Holdings Ltd., through its wholly-owned subsidiary, has entered into a significant real estate transaction by acquiring a residential property in Shanghai for RMB198,950,940. This acquisition, classified as a discloseable transaction under Hong Kong Stock Exchange rules, involves a property with a gross floor area of approximately 570.06 square meters. The purchase is structured with an initial deposit followed by a balance payment due by the end of November 2025, and includes provisions for contract termination under specific conditions.