Vincent Medical Holdings Limited (1612) AI Stock Analysis

• Market Cap: HK$586.55M
• Dividend Yield: 4.94%
• Average Volume (3M): 785.93K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.63
• Revenue Growth: 17.93%
• EPS Growth: 36.82%
• Country: HK
• Employees: 1,328
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.08
• Shares Outstanding: 659,049,800
• 10 Day Avg. Volume: 481,400
• 30 Day Avg. Volume: 785,933
• PEG Ratio: 0.15
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.32
• P/FCF Ratio: -9.70
• 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: 71 Outperform
• Price Target: HK$1.00 ▲(20.48% Upside)

The score is driven primarily by solid financial positioning and profitability trends alongside an attractive valuation (low P/E and strong dividend yield). These positives are partially offset by weak 2024 cash flow conversion (FCF at zero) and technically overbought momentum signals that raise near-term downside risk.

Positive Factors

Revenue growth and market demand

Consistent double-digit revenue growth in 2024 reflects sustained demand for its respiratory and critical-care devices and validates its commercial reach. Durable growth supports capacity to invest in R&D, expand distribution, and scale production over the next several quarters.

Conservative capital structure

A strong equity base and low leverage give the company financial flexibility to fund product development, absorb cyclical pressures, and pursue strategic partnerships without high interest burden, preserving resilience across a multi-quarter horizon.

Healthy gross and EBITDA margins

Sizable gross margin and positive EBITDA margin point to effective product pricing and manufacturing efficiency in core device lines. Sustained margins support reinvestment into R&D and distribution, underpinning longer-term competitive positioning.

Negative Factors

Weak cash flow conversion

A collapse of free cash flow and zero OCF-to-net-income conversion in 2024 signals difficulty turning accounting profits into cash. This undermines the firm’s ability to self-fund capex, R&D, dividends, or M&A without relying on external financing over coming quarters.

Earnings volatility

Material swings in EBIT and net income reduce predictability of profits and cash generation. For investors and management, volatility complicates capacity planning, budgeting, and long-term investment decisions, elevating execution risk over a 2–6 month horizon.

Relatively low net margin

A single-digit net margin limits the buffer to absorb commodity, supply-chain or pricing shocks and constrains internal funding for growth initiatives. Over time, this can reduce free cash flow resilience and the ability to scale without margin improvement.

Vincent Medical Holdings Limited Business Overview & Revenue Model

Company Description

Vincent Medical Holdings Limited, an investment holding company, researches, develops, manufactures, markets, and sells medical devices. It operates in two segments, Original Equipment Manufacturing (OEM) and Original Brand Manufacturing. The company develops medical devices focusing on respiratory products; imaging contrast media power injector disposables; and orthopedic and rehabilitation products for OEM customers. Its respiratory products portfolio includes humidification systems, nCPAP interface systems, respiratory care units, electronic air-oxygen blenders, and anesthesia systems. The company's orthopedic and rehabilitation products comprise various adjustable rehabilitation braces for support and protection, and rehabilitation of various skeletomuscular parts after injury or surgery. It also develops robotic hand training devices. Vincent Medical Holdings Limited sells its products under the Inspired Medical, Hand of Hope, and Hypnus brand names in the People's Republic of China, the United States, the Netherlands, Australia, Japan, and internationally. The company was founded in 1997 and is headquartered in Hung Hom, Hong Kong. Vincent Medical Holdings Limited is a subsidiary of Vincent Raya International Limited.

How the Company Makes Money

Vincent Medical Holdings generates revenue primarily through the sale of its medical devices and equipment to healthcare providers, hospitals, and distributors. The company benefits from a diversified revenue model that includes direct sales, partnerships with medical institutions, and distribution agreements with regional partners. Additionally, Vincent Medical may engage in research and development collaborations with healthcare organizations, which can create supplementary revenue streams through grants or joint ventures. The continued demand for respiratory therapies and the expansion of healthcare services in emerging markets also contribute positively to the company's earnings.

Vincent Medical Holdings Limited Financial Statement Overview

Summary

Vincent Medical Holdings Limited shows strong revenue growth and solid equity positioning, reflective of its potential in the medical devices industry. However, cash flow management and income volatility remain areas for improvement. Despite these challenges, the company's low leverage and improving profitability metrics suggest a stable financial foundation with room for growth.

Income Statement

Vincent Medical Holdings Limited demonstrated a positive revenue growth rate of approximately 11.56% for 2024 compared to 2023. The gross profit margin for 2024 was approximately 32.48%, indicating healthy profitability, although the net profit margin was lower at about 8.64%. The EBIT margin was approximately 9.95%, and the EBITDA margin was 12.49%, showing reasonable operational efficiency. However, past fluctuations in EBIT and net income suggest some volatility.

Balance Sheet

The company maintains a solid equity base with an equity ratio of approximately 62.93% in 2024. The debt-to-equity ratio is relatively low at about 0.17, suggesting a conservative leverage approach. Return on equity improved to approximately 11.95% in 2024, indicating good returns on shareholder investment, although past years showed significant swings.

Cash Flow

The company's free cash flow was positive in 2023 but declined to zero in 2024, indicating potential challenges in cash generation. The operating cash flow to net income ratio was zero in 2024, highlighting a need for improvement in converting income to cash. Historical free cash flow growth was volatile, reflecting the need for better cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	869.70M	800.96M	717.97M	629.24M	777.72M	1.16B
Gross Profit	299.82M	259.99M	240.39M	147.83M	243.83M	478.79M
EBITDA	137.82M	100.00M	104.43M	29.95M	114.55M	329.25M
Net Income	87.51M	69.17M	57.27M	-17.40M	60.70M	216.87M
Balance Sheet
Total Assets	1.08B	919.68M	786.61M	726.70M	846.15M	946.87M
Cash, Cash Equivalents and Short-Term Investments	204.33M	173.44M	175.78M	159.34M	173.17M	169.07M
Total Debt	162.80M	99.65M	37.38M	60.39M	62.96M	84.69M
Total Liabilities	452.36M	336.33M	243.52M	228.09M	245.72M	341.69M
Stockholders Equity	623.44M	578.55M	541.84M	498.01M	598.36M	611.56M
Cash Flow
Free Cash Flow	-46.94M	-26.52M	61.28M	57.67M	94.48M	142.19M
Operating Cash Flow	84.23M	73.48M	124.97M	76.27M	119.43M	204.77M
Investing Cash Flow	-137.85M	-98.81M	-62.37M	-18.61M	-20.69M	-132.19M
Financing Cash Flow	89.10M	26.39M	-45.37M	-67.84M	-101.16M	10.13M

Vincent Medical Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.83
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1612, the sentiment is Positive. The current price of 0.83 is below the 20-day moving average (MA) of 0.85, below the 50-day MA of 0.84, and above the 200-day MA of 0.71, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 59.28 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1612.

Vincent Medical Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1612	71 Outperform	HK$586.55M	6.54	14.73%	4.94%	17.93%	36.82%
6118	52 Neutral	HK$502.33M	13.24	4.40%	―	-2.77%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
2170	44 Neutral	HK$582.61M	-2.26	-20.60%	―	11.43%	4.88%
2393	44 Neutral	HK$279.56M	-1.59	-29.79%	―	6.10%	-115.12%
2500	41 Neutral	HK$1.12B	-1.59	-26.80%	―	-8.56%	-14.84%
2216	40 Neutral	HK$1.27B	-9.86	-8.93%	―	-30.60%	28.61%

Vincent Medical Holdings Limited Corporate Events

Vincent Medical Renews Key Lease and Service Agreements

Vincent Medical Holdings Limited has announced the renewal of its lease agreements with VRDL and VRDG for properties in Hong Kong and the PRC, extending the lease term from January 2026 to December 2027. Additionally, the company has renewed its agreement with VRDG for the supply of plastic and metal components and related services for the same period. These transactions are considered connected transactions under the Listing Rules, requiring announcement and reporting but exempt from circular and independent shareholders’ approval. The renewal agreements will result in the recognition of additional right-of-use assets valued at approximately HK$21.6 million, impacting the company’s financial statements.

The most recent analyst rating on (HK:1612) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Vincent Medical Holdings Limited stock, see the HK:1612 Stock Forecast page.