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EC Healthcare (HK:2138)
:2138
Hong Kong Market
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EC Healthcare (2138) AI Stock Analysis

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HK:2138

EC Healthcare

(2138)

Rating:66Neutral
Price Target:
EC Healthcare's overall score reflects the company's solid revenue growth and cash flow generation capabilities, yet profitability issues and technical analysis indicators suggest caution. The stock is undervalued relative to its growth potential but remains under pressure from market trends. Investors may find the valuation fair, but should be cautious of the stock's current technical weakness.

EC Healthcare (2138) vs. iShares MSCI Hong Kong ETF (EWH)

EC Healthcare Business Overview & Revenue Model

Company DescriptionEC Healthcare, an investment holding company, engages in the provision of medical and healthcare services in Hong Kong, Macau, and the People's Republic of China. The company operates through three segments: Medical, Aesthetic Medical and Beauty and Wellness, and Others. It provides quasi-medical, beauty and wellness, medical imaging, medical surgery, aesthetic medical beauty, aesthetic medical, dental, hair treatment, vaccine, chiropractic, psychological, and orthopedics services. It also offers administrative, management, laboratory testing, performance marketing, marketing, and travel agency services; sells beauty and skincare products; operates in healthcare machines and property investment holding businesses; and provides multi-channel networking and related services, and veterinary services. The company offers products and services primarily under private-label brands, such as PRODERMA LAB, Swissline, Suissebeaute, and re:HEALTH. The company was formerly known as Union Medical Healthcare Limited and changed its name to EC Healthcare in April 2021. EC Healthcare was founded in 2005 and is headquartered in Mong Kok, Hong Kong.
How the Company Makes MoneyEC Healthcare generates revenue through multiple streams. Its primary source of income is derived from the provision of medical services, which includes outpatient consultations, diagnostic services, and specialized medical treatments. The company also earns a significant portion of its revenue from aesthetic medical and beauty services, offering procedures such as laser treatments, skincare therapies, and cosmetic surgeries. Additionally, EC Healthcare benefits from healthcare management services, which encompass health screening programs and chronic disease management. Strategic partnerships with medical institutions and collaborations with healthcare professionals further enhance the company's service offerings and market reach, contributing to its overall earnings.

EC Healthcare Financial Statement Overview

Summary
EC Healthcare exhibits strong revenue growth and cash flow generation, which are positives for its financial health. However, profitability metrics such as net income and return on equity are areas of concern. The company maintains a moderate leverage position, providing some financial stability. Overall, while there are strengths in growth and cash generation, improving profitability remains a key focus.
Income Statement
70
Positive
EC Healthcare shows a strong revenue growth with a 8.65% increase from the previous year, indicating a positive growth trajectory. However, the net profit margin is negative at -0.45%, which reflects operational challenges. The gross profit margin stands at 16.74%, and the EBIT margin at 4.42%, both indicating room for improvement in profitability. The EBITDA margin at 17.52% is healthy, suggesting good operational cash flow generation.
Balance Sheet
65
Positive
The balance sheet shows a moderate debt-to-equity ratio of 0.82, indicating a balanced leverage position. Return on equity is negative at -0.97%, reflecting recent profitability issues. However, the equity ratio is strong at 36.50%, showing a solid equity base relative to total assets.
Cash Flow
75
Positive
The company demonstrates strong cash flow performance with a free cash flow growth rate of 169.56%, indicating enhanced liquidity. Operating cash flow to net income ratio is robust at 36.39, suggesting efficient cash generation relative to net income challenges. The free cash flow to net income ratio is significant at -27.86, highlighting the company's capability to generate cash despite net income losses.
BreakdownMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue4.21B3.88B2.92B2.08B1.95B
Gross Profit704.74M674.67M753.05M519.47M649.93M
EBITDA737.83M782.26M807.25M597.19M624.25M
Net Income-18.95M69.65M197.50M192.87M286.58M
Balance Sheet
Total Assets5.37B5.51B4.86B3.79B2.56B
Cash, Cash Equivalents and Short-Term Investments606.32M726.84M874.07M938.70M632.35M
Total Debt1.60B1.53B944.89M1.03B719.90M
Total Liabilities2.97B3.14B2.51B2.16B1.39B
Stockholders Equity1.96B1.85B1.88B1.27B1.00B
Cash Flow
Free Cash Flow527.88M195.83M343.21M467.35M504.58M
Operating Cash Flow689.10M608.32M603.48M616.45M574.37M
Investing Cash Flow-358.36M-715.62M-586.10M-366.50M314.91M
Financing Cash Flow-486.46M-51.31M-80.16M158.62M-735.82M

EC Healthcare Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.63
Price Trends
50DMA
0.60
Positive
100DMA
0.63
Negative
200DMA
0.67
Negative
Market Momentum
MACD
<0.01
Negative
RSI
60.01
Neutral
STOCH
71.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2138, the sentiment is Positive. The current price of 0.63 is above the 20-day moving average (MA) of 0.59, above the 50-day MA of 0.60, and below the 200-day MA of 0.67, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.01 is Neutral, neither overbought nor oversold. The STOCH value of 71.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2138.

EC Healthcare Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
HK$746.68M19.67-8.91%1.59%169.20%
60
Neutral
HK$16.95B5.65-7.44%2.87%11.55%-28.15%
$135.19M-20.26%
77
Outperform
HK$31.52B35.9037.28%0.03%59.83%68.29%
67
Neutral
HK$60.81B25.2536.16%1.15%54.44%35.90%
64
Neutral
HK$777.66M12.128.96%30.72%-35.61%
63
Neutral
HK$403.28M7.2512.01%25.55%14.47%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2138
EC Healthcare
0.63
-0.39
-38.24%
NBBTF
Natural Beauty Bio-Technology
0.05
0.01
25.00%
HK:2023
China Ludao Technology Co. Ltd.
0.82
0.00
0.00%
HK:2145
Shanghai Chicmax Cosmetics Co., Ltd. Class H
76.40
42.08
122.61%
HK:2367
Giant Biogene Holding Co. Ltd.
57.50
18.94
49.12%
HK:3332
Nanjing Sinolife United Co., Ltd. Class H
0.48
-0.31
-39.24%

EC Healthcare Corporate Events

EC Healthcare Completes Major Disposal and Acquisition Transactions
Mar 3, 2025

EC Healthcare announced the completion of a significant transaction involving the disposal of 51% of the issued share capital in a target company and the acquisition of 40% of the issued share capital in a non-wholly owned subsidiary. As a result, the company no longer holds interests in the target group, and these entities will not be included in the company’s consolidated financial statements, potentially impacting its financial reporting and market positioning.

EC Healthcare Revises Long Stop Date for Share Purchase Agreement
Feb 7, 2025

EC Healthcare, a company incorporated in the Cayman Islands, has announced a change in the Long Stop Date for its Share Purchase Agreement. Initially set for February 6, 2025, the date has been revised to February 21, 2025. The Board believes this adjustment aligns with the interests of the company and its shareholders, while all other terms of the agreement remain unchanged.

EC Healthcare Secures Shareholder Approval for Key Acquisitions and Disposals
Feb 5, 2025

EC Healthcare announced that the resolutions proposed at its Extraordinary General Meeting (EGM) were successfully passed by shareholders. The approved resolutions included acquisition and disposal agreements, with a significant 64.1% of total shares represented at the meeting. This approval is expected to impact the company’s operational strategies and strengthen its market positioning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 22, 2025