AK Medical Holdings Ltd. (1789) AI Stock Analysis

• Market Cap: HK$6.72B
• Dividend Yield: 1.26%
• Average Volume (3M): 4.30M
• Price to Earnings (P/E): 21.0
• Beta (1Y): 1.22
• Revenue Growth: 25.18%
• EPS Growth: 55.79%
• Country: HK
• Employees: 950
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.16
• Shares Outstanding: 1,123,920,300
• 10 Day Avg. Volume: 3,969,892
• 30 Day Avg. Volume: 4,297,109
• PEG Ratio: 0.33
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 3.78
• P/FCF Ratio: 17.58
• 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: 69 Neutral
• Price Target: HK$6.50 ▲(9.98% Upside)

AK Medical Holdings Ltd. has a strong financial foundation with robust revenue growth and profitability, which is the most significant factor in its score. Technical analysis indicates moderate momentum, while valuation metrics suggest the stock is fairly priced. The absence of earnings call insights and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates a strong market position and effective product adoption, supporting long-term business expansion.

Balance Sheet Health

A strong balance sheet with low leverage ensures financial stability and flexibility, enabling the company to invest in growth opportunities.

Profitability

Improving net profit margins reflect effective cost control and operational efficiency, enhancing long-term profitability and shareholder value.

Negative Factors

Cash Flow Management

Inconsistent cash flow management can hinder the company's ability to fund operations and growth initiatives, posing a risk to financial stability.

Free Cash Flow Volatility

Volatile free cash flow suggests difficulties in capital allocation, which could impact the company's ability to invest in strategic projects.

Cash Flow Consistency

The need for improved cash flow consistency highlights potential risks in liquidity management, which could affect operational and strategic flexibility.

AK Medical Holdings Ltd. Business Overview & Revenue Model

Company Description

AK Medical Holdings Limited, an investment holding company, designs, develops, produces, and markets orthopedic joint implants and related products under the AK Medical brand in China and internationally. It offers knee, hip, and spine replacement implants; and 3D-printed products, such as 3D-printed hip replacement implants, 3D-printed artificial vertebral bodies, and 3D-printed spinal interbody cages. The company also distributes third party orthopedic products; and manufactures surgical instruments and medical irrigators. Its principal customers include distributors, hospitals, physicians and surgeons, and patients. The company was founded in 2003 and is headquartered in Beijing, the People's Republic of China. AK Medical Holdings Limited is a subsidiary of Ximalaya Limited.

How the Company Makes Money

AK Medical Holdings generates revenue through the sale of its orthopedic products, including joint implants and surgical instruments, to hospitals and clinics. The company has multiple revenue streams, primarily from the direct sales of its products and through partnerships with healthcare institutions that utilize its technologies for surgeries. Additionally, AK Medical may benefit from licensing agreements or collaborations with other medical technology firms, enhancing its product offerings and expanding its market reach. The company's focus on innovation and continuous improvement in product design also plays a critical role in driving sales and maintaining competitive advantage in the medical device industry.

AK Medical Holdings Ltd. Financial Statement Overview

Summary

AK Medical Holdings Ltd. displays a strong financial position with impressive revenue growth and profitability metrics. The balance sheet is solid, with low leverage and high equity, ensuring financial stability. However, cash flow management poses some risks, requiring attention to improve consistency and support growth initiatives.

Income Statement

AK Medical Holdings Ltd. has demonstrated strong revenue growth over the years, with a significant increase from 2023 to 2024. The gross profit margin has remained healthy, with a slight improvement. Net profit margin has also seen an upward trend, indicating efficient cost management. EBIT and EBITDA margins are stable, showcasing effective operational management.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio, indicating low financial leverage. A high equity ratio reflects strong capitalization. The return on equity is solid, showcasing effective use of shareholder funds. Overall, the company is financially stable with a strong equity base and manageable liabilities.

Cash Flow

Cash flow from operations has been inconsistent, with a significant drop in the latest year. The free cash flow has also been volatile, reflecting potential challenges in managing capital expenditures and investments. However, the company's ability to generate operating cash flow relative to net income indicates potential for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.38B	1.35B	1.09B	1.05B	761.44M	1.04B
Gross Profit	820.05M	808.19M	674.49M	636.43M	499.19M	714.53M
EBITDA	383.27M	371.66M	323.34M	322.87M	184.33M	438.41M
Net Income	295.28M	273.93M	182.10M	204.77M	92.62M	314.01M
Balance Sheet
Total Assets	3.56B	3.34B	3.00B	2.77B	2.61B	2.53B
Cash, Cash Equivalents and Short-Term Investments	1.52B	1.05B	726.67M	1.04B	841.13M	901.49M
Total Debt	153.99M	99.39M	84.20M	38.78M	41.56M	26.85M
Total Liabilities	828.14M	697.21M	611.12M	530.73M	573.73M	484.13M
Stockholders Equity	2.73B	2.64B	2.39B	2.24B	2.03B	2.04B
Cash Flow
Free Cash Flow	281.75M	289.11M	-162.14M	121.20M	100.39M	115.47M
Operating Cash Flow	354.22M	451.07M	33.94M	242.92M	176.62M	205.26M
Investing Cash Flow	-526.02M	-393.35M	-318.15M	-82.29M	-297.10M	-356.41M
Financing Cash Flow	-40.87M	-39.43M	-14.02M	-36.80M	-100.70M	611.74M

AK Medical Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1789, the sentiment is Positive. The current price of 5.91 is above the 20-day moving average (MA) of 5.71, above the 50-day MA of 5.73, and above the 200-day MA of 5.87, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 61.31 is Neutral, neither overbought nor oversold. The STOCH value of 84.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1789.

AK Medical Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1789	69 Neutral	HK$6.72B	20.99	11.24%	1.26%	25.18%	55.79%
2190	58 Neutral	HK$8.65B	49.00	4.99%	0.48%	35.01%	483.73%
1302	57 Neutral	HK$7.17B	93.26	1.98%	―	3.42%	-70.82%
1858	55 Neutral	HK$9.49B	21.07	8.69%	1.88%	14.56%	61.60%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
9996	39 Underperform	HK$4.43B	-18.06	-11.20%	―	29.25%	9.02%

AK Medical Holdings Ltd. Corporate Events

AK Medical Holdings Ltd. Strengthens Governance with New Nomination Committee

AK Medical Holdings Ltd. has established a nomination committee as part of its corporate governance structure. The committee, primarily composed of independent non-executive directors, is tasked with reviewing the board’s structure, diversity, and size, and making recommendations for changes to align with the company’s corporate strategy. This move is expected to enhance the company’s governance practices and ensure a diverse and skilled board, potentially impacting its industry positioning and stakeholder relations positively.

The most recent analyst rating on (HK:1789) stock is a Hold with a HK$6.50 price target. To see the full list of analyst forecasts on AK Medical Holdings Ltd. stock, see the HK:1789 Stock Forecast page.