Raily Aesthetic Medicine International Holdings Limited (2135) AI Stock Analysis

• Market Cap: HK$94.15M
• Dividend Yield: N/A
• Average Volume (3M): 289.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: -20.66%
• EPS Growth: -77.84%
• Country: HK
• Employees: 290
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): -0.01
• Shares Outstanding: 557,077,330
• 10 Day Avg. Volume: 121,000
• 30 Day Avg. Volume: 289,644
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.09
• Price to Sales (P/S): 0.05
• P/FCF Ratio: -0.25
• 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: 50 Neutral
• Price Target: HK$0.15 ▼(-14.71% Downside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by persistent losses and increasing leverage. While technical analysis shows a positive short-term trend, the overbought RSI suggests caution. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield, further weighing down the score.

Positive Factors

Market Growth

The aesthetic medicine market's growth supports long-term demand for Raily's services, providing a tailwind for revenue expansion.

Business Model

A diversified service offering allows Raily to capture a broad customer base and adapt to changing consumer preferences, enhancing resilience.

Brand Presence

A strong brand presence and effective marketing can drive customer loyalty and repeat business, supporting sustained revenue growth.

Negative Factors

Financial Performance

Ongoing losses and increasing leverage pose risks to financial stability, potentially limiting investment in growth initiatives.

Revenue Decline

Declining revenue growth indicates challenges in maintaining market position and could pressure margins if not addressed.

Cash Flow Challenges

Negative free cash flow limits Raily's ability to reinvest in business operations and may necessitate external financing, increasing financial risk.

Raily Aesthetic Medicine International Holdings Limited Business Overview & Revenue Model

Company Description

Raily Aesthetic Medicine International Holdings Limited, an investment holding company, provides aesthetic medical services. The company operates through three segments: Aesthetic Medical Services, Consulting Services, and Aesthetic Medical Equipment Products. Its services include aesthetic surgery services, including aesthetic surgical procedures performed on various parts of the face or body; minimally invasive aesthetic services, primarily comprising aesthetic injection procedures; aesthetic dermatology services, such as various aesthetic energy-based procedures; and aesthetic medical management consulting services. The company also offers aesthetic dental services, including orthodontics, and dental implant and whitening; and trades in medical equipment. In addition, it sells surgical implants and aesthetic medical skincare products. The company owns and operates a network of four private for-profit aesthetic medical institutions in Zhejiang and Anhui Province, the People's Republic of China. It serves individual retail clients and aesthetic medical institutions. The company was founded in 2008 and is headquartered in Hangzhou, the People's Republic of China. Raily Aesthetic Medicine International Holdings Limited operates as a subsidiary of Ruide Consultation Limited.

How the Company Makes Money

Raily Aesthetic Medicine generates revenue primarily through its diverse offerings of aesthetic treatments and services. The company's revenue model is centered around fee-for-service income from patients seeking cosmetic procedures, which can include consultations, injectables such as Botox and dermal fillers, laser treatments, and other skin care services. Additionally, Raily may generate income through the sale of related skincare products and equipment used in treatments. Key revenue streams include repeat business from returning clients and referrals, as well as potential partnerships with beauty and wellness brands that enhance their service offerings. The growth of the aesthetic medicine market, along with strategic marketing efforts and a strong brand presence, contributes significantly to the company's earnings.

Raily Aesthetic Medicine International Holdings Limited Financial Statement Overview

Summary

Raily Aesthetic Medicine International Holdings Limited faces significant financial challenges, with declining profitability and increasing leverage. The income statement shows persistent losses, while the balance sheet indicates rising debt levels. Cash flow issues further exacerbate the company's financial position, requiring strategic adjustments to improve financial health.

Income Statement

The company has shown a decline in revenue growth, with a slight increase in revenue from 2023 to 2024. Gross profit margin has decreased over the years, indicating pressure on profitability. The net profit margin remains negative, reflecting ongoing losses. The EBIT and EBITDA margins are also negative, highlighting operational challenges.

Balance Sheet

The debt-to-equity ratio has increased, indicating higher leverage and potential financial risk. The return on equity is negative due to net losses, which is concerning for shareholders. However, the equity ratio remains relatively stable, suggesting a balanced asset structure.

Cash Flow

The company has experienced negative free cash flow, which has worsened from 2023 to 2024. The operating cash flow to net income ratio is positive, indicating some ability to generate cash from operations despite losses. However, the free cash flow to net income ratio is negative, reflecting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	166.47M	199.34M	189.38M	164.52M	188.37M	164.54M
Gross Profit	52.08M	71.41M	71.49M	66.78M	69.69M	80.17M
EBITDA	-14.90M	-34.29M	-6.03M	3.89M	-6.00M	17.48M
Net Income	-65.17M	-59.21M	-32.46M	-15.91M	-17.69M	4.25M
Balance Sheet
Total Assets	240.89M	249.92M	273.60M	302.65M	344.73M	272.33M
Cash, Cash Equivalents and Short-Term Investments	35.73M	28.87M	39.79M	78.78M	121.72M	148.40M
Total Debt	72.96M	56.37M	51.78M	48.22M	67.45M	32.19M
Total Liabilities	152.57M	154.41M	141.01M	136.77M	162.37M	85.58M
Stockholders Equity	97.97M	104.13M	138.12M	166.08M	178.22M	185.87M
Cash Flow
Free Cash Flow	4.53M	-38.59M	-10.00M	-21.13M	-18.25M	5.56M
Operating Cash Flow	10.29M	6.01M	8.02M	-2.27M	-2.47M	14.16M
Investing Cash Flow	-10.61M	-12.70M	-26.14M	558.00K	-82.45M	-13.34M
Financing Cash Flow	1.51M	19.43M	-10.48M	-25.65M	11.97M	92.67M

Raily Aesthetic Medicine International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2135, the sentiment is Positive. The current price of 0.17 is above the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.13, and above the 200-day MA of 0.12, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 70.30 is Negative, neither overbought nor oversold. The STOCH value of 34.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2135.

Raily Aesthetic Medicine International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2373	66 Neutral	HK$6.20B	21.12	31.23%	1.97%	28.53%	22.34%
8161	53 Neutral	HK$25.79M	2.88	125.77%	―	-20.81%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
8357	51 Neutral	HK$63.65M	-8.64	-10.31%	―	-11.68%	-71.01%
2135	50 Neutral	HK$94.15M	-1.33	-51.07%	―	-20.66%	-77.84%
8307	48 Neutral	HK$63.48M	-48.48	-19.93%	―	-2.91%	55.41%
8437	44 Neutral	HK$21.31M	-0.72	―	―	14.64%	-81.95%

Raily Aesthetic Medicine International Holdings Limited Corporate Events

Raily Aesthetic Medicine Delays Utilization of Proceeds Amid COVID-19 Challenges

Raily Aesthetic Medicine International Holdings Limited announced a delay in utilizing HK$8.6 million of its proceeds intended for organic growth due to challenges in identifying suitable locations in Shanghai during the COVID-19 pandemic. Additionally, HK$7.6 million from the Rights Issue remains unutilized as the company prepares for the registration of aesthetic medical equipment products. The company plans to use these funds by the end of 2025 and March 2026, respectively, and will keep stakeholders informed of any progress.