Rici Healthcare Holdings Ltd. (1526) AI Stock Analysis

• Market Cap: HK$1.67B
• Dividend Yield: 4.29%
• Average Volume (3M): 82.70K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 0.35
• Revenue Growth: -3.85%
• EPS Growth: -19.28%
• Country: HK
• Employees: 8,908
• Sector: Healthcare
• Sector Strength: 46
• Industry: Medical - Care Facilities
• EPS (TTM): 0.20
• Shares Outstanding: 1,590,324,000
• 10 Day Avg. Volume: 82,000
• 30 Day Avg. Volume: 82,700
• PEG Ratio: -0.11
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.84
• 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: 63 Neutral
• Price Target: ―

Rici Healthcare Holdings Ltd. presents a mixed investment case. The company shows strong profitability and valuation, with an attractive P/E ratio and dividend yield. However, technical indicators suggest a bearish market sentiment. The high leverage and zero free cash flow raise concerns about financial stability and liquidity. To improve its investment appeal, the company needs to address growth strategies and cash flow management.

Rici Healthcare Holdings Ltd. Business Overview & Revenue Model

Company Description

Rici Healthcare Holdings Ltd. (1526) is a Chinese company primarily engaged in the provision of premium healthcare services. The company operates through three main segments: medical examination, hospital, and medical consultancy and management services. It offers a variety of healthcare services, including medical examinations, diagnosis, and treatments, focusing on providing high-quality medical and healthcare services to its clients.

How the Company Makes Money

Rici Healthcare Holdings Ltd. generates revenue through its diversified healthcare operations. The medical examination segment is a major revenue stream, providing routine and comprehensive health check-ups to individuals and corporate clients. The hospital segment contributes to earnings by offering inpatient and outpatient services, including surgical operations, medical treatments, and specialized healthcare services. Additionally, the company benefits from its medical consultancy and management services, which involve providing consultancy services to other healthcare institutions and managing healthcare facilities. Strategic partnerships and collaborations with healthcare providers and corporate clients also play a significant role in enhancing the company's revenue streams.

Rici Healthcare Holdings Ltd. Financial Statement Overview

Summary

Rici Healthcare Holdings Ltd. demonstrates strong profitability and efficient operations, reflected in 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. Overall, while the company is financially stable, focusing on growth and reducing leverage could further enhance its financial health.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.92B	2.99B	2.38B	2.38B	1.93B
	Gross Profit
1.17B	1.25B	927.20M	975.22M	580.66M
	EBIT
607.50M	656.92M	431.95M	520.70M	76.36M
	EBITDA
798.69M	1.07B	572.61M	682.80M	234.75M
	Net Income Common Stockholders
297.32M	363.80M	290.79M	349.15M	-7.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.12B	811.21M	720.14M	784.36M	574.86M
	Total Assets
4.86B	4.64B	4.57B	4.54B	4.21B
	Total Debt
2.30B	2.27B	2.30B	2.74B	2.90B
	Net Debt
1.19B	1.46B	1.58B	1.97B	2.34B
	Total Liabilities
3.48B	3.52B	3.66B	3.95B	3.88B
	Stockholders Equity
1.35B	1.13B	953.92M	677.50M	505.81M
Cash Flow		Free Cash Flow
0.00	487.07M	396.33M	356.41M	77.71M
	Operating Cash Flow
0.00	826.29M	706.37M	681.07M	444.63M
	Investing Cash Flow
0.00	-147.00M	-273.99M	-269.13M	-355.44M
	Financing Cash Flow
0.00	-592.72M	-495.23M	-193.99M	169.32M

Rici Healthcare Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1.05 is below the 20-day moving average (MA) of 1.07, below the 50-day MA of 1.08, and below the 200-day MA of 1.17, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 44.61 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, 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
1513	74 Outperform	$32.28B	11.57	14.56%	4.18%	-5.37%	6.28%
3613	68 Neutral	$7.00B	13.99	12.58%	4.19%	5.69%	-7.43%
1526	63 Neutral	HK$1.67B	5.18	24.13%	4.29%	-3.85%	-19.28%
Sector *	53 Neutral	$5.22B	3.33	-44.36%	7.55%	16.78%	-0.12%
1833	51 Neutral	$16.82B	96.41	0.96%	―	1.01%	―
3886	50 Neutral	HK$1.61B	―	-6.55%	3.97%	0.04%	-4.88%
3869	48 Neutral	HK$594.23M	―	-10.78%	―	-0.95%	-128.35%

Rici Healthcare Holdings Ltd. Corporate Events

Rici Healthcare Announces AGM with Key Resolutions on Agenda

Rici Healthcare Holdings Ltd. has announced its annual general meeting scheduled for June 19, 2025, where shareholders will consider several resolutions, including the adoption of financial statements, re-election of directors, and re-appointment of the auditor. The meeting will also address granting the board authority to issue additional shares, which could impact the company’s capital structure and shareholder value.

Rici Healthcare Reports Decline in 2024 Financial Results

Rici Healthcare Holdings Ltd. reported a decrease in its financial performance for the year ended December 31, 2024. The company’s revenue fell by 2.3% to RMB2,924.5 million, and its gross profit decreased by 6.5% to RMB1,167.8 million compared to the previous year. The profit attributable to the company’s owners also saw a decline, amounting to RMB297.3 million, down from RMB363.8 million in 2023. Despite these declines, the company remains a significant player in the healthcare industry, and these results may impact its market positioning and stakeholder confidence.

Rici Healthcare Holdings Announces Board Composition and Governance Structure

Rici Healthcare Holdings Ltd. has announced the composition of its board of directors and their respective roles within the company. This announcement highlights the leadership structure and governance of the company, which is crucial for its strategic direction and operational effectiveness. The board includes a mix of executive and independent non-executive directors, with various committees such as Audit, Remuneration, and Nomination, each chaired by different members. This structured governance is expected to support the company’s growth and align with its strategic objectives.

Rici Healthcare Announces Changes in Nomination Committee

Rici Healthcare Holdings Ltd. announced a change in the composition of its Nomination Committee, effective March 28, 2025. Dr. Wang Yong has stepped down, and Ms. Wong Sze Wing has joined the committee, which now includes three members. This change may influence the company’s governance and strategic direction, potentially impacting stakeholders and the company’s positioning in the healthcare industry.

Rici Healthcare to Announce 2024 Annual Results and Consider Dividend

Rici Healthcare Holdings Ltd. has announced that its board of directors will meet on March 28, 2025, to discuss and approve the audited annual results for the year ending December 31, 2024. The meeting will also consider the potential payment of a final dividend, which could impact the company’s financial strategy and shareholder returns.