EC Healthcare (2138) AI Stock Analysis

• Market Cap: HK$888.91M
• Dividend Yield: 1.33%
• Average Volume (3M): 735.73K
• Price to Earnings (P/E): 19.7
• Beta (1Y): 1.50
• Revenue Growth: -1.68%
• EPS Growth: -781.88%
• Country: HK
• Employees: 2,872
• Sector: Healthcare
• Sector Strength: 49
• Industry: Household & Personal Products
• EPS (TTM): -0.15
• Shares Outstanding: 1,185,211,300
• 10 Day Avg. Volume: 737,403
• 30 Day Avg. Volume: 735,733
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 1.19
• 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: HK$0.50
• Price Target Upside: -33.33% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: HK$0.50 ▼(-33.33% Downside)

The overall stock score of 56 reflects significant financial challenges, particularly in revenue and profitability, which are partially offset by strong cash flow generation. Technical analysis indicates bullish momentum, but the stock is overbought. Valuation concerns persist due to negative earnings, making the stock less attractive despite a modest dividend yield.

EC Healthcare Business Overview & Revenue Model

Company Description

EC 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 Money

EC Healthcare generates revenue through multiple streams, primarily from its outpatient services and aesthetic treatments, which include consultations, medical procedures, and wellness programs. The company also earns income from the sale of healthcare products, such as supplements and skincare items. Additionally, EC Healthcare has established partnerships with various medical professionals and clinics, enhancing its service offerings and expanding its customer base. The integration of technology, such as telemedicine and online booking systems, further contributes to its revenue by increasing accessibility and convenience for patients.

EC Healthcare Financial Statement Overview

Summary

EC Healthcare faces significant challenges with declining revenue and profitability, as evidenced by negative net income and shrinking margins. While the balance sheet shows moderate leverage, the negative return on equity is concerning. Cash flow generation remains a relative strength, providing some cushion against operational losses.

Income Statement

EC Healthcare's income statement shows a concerning trend with declining revenue and profitability. The gross profit margin remains high at 80.7% for 2025, but the net profit margin is negative, indicating losses. Revenue has decreased by 29.9% compared to the previous year, and EBIT and EBITDA margins have also declined, suggesting operational challenges.

Balance Sheet

The balance sheet reflects moderate financial stability with a debt-to-equity ratio of 0.75, which is manageable but has increased over the years. The return on equity is negative, indicating inefficiencies in generating returns for shareholders. However, the equity ratio remains stable, suggesting a reasonable proportion of equity financing.

Cash Flow

Cash flow analysis shows a positive trend with an 8.5% growth in free cash flow. The operating cash flow to net income ratio is 0.39, indicating that cash flows are not fully covering net losses. However, the free cash flow to net income ratio is strong at 0.92, suggesting efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.15B	4.14B	4.21B	3.88B	2.92B	2.08B
Gross Profit	1.34B	3.34B	704.74M	674.67M	753.05M	519.47M
EBITDA	428.83M	619.28M	737.83M	782.26M	807.25M	597.19M
Net Income	-11.50M	-167.19M	-18.95M	69.65M	197.50M	192.87M
Balance Sheet
Total Assets	5.53B	5.03B	5.37B	5.51B	4.86B	3.79B
Cash, Cash Equivalents and Short-Term Investments	833.97M	1.07B	606.32M	726.84M	874.07M	938.70M
Total Debt	1.51B	1.34B	1.60B	1.53B	944.89M	1.03B
Total Liabilities	2.98B	2.82B	2.97B	3.14B	2.51B	2.16B
Stockholders Equity	2.01B	1.79B	1.96B	1.85B	1.88B	1.27B
Cash Flow
Free Cash Flow	632.09M	686.07M	527.88M	195.83M	343.21M	467.35M
Operating Cash Flow	793.32M	743.24M	689.10M	608.32M	603.48M	616.45M
Investing Cash Flow	-119.44M	341.28M	-358.36M	-715.62M	-586.10M	-366.50M
Financing Cash Flow	-558.39M	-633.79M	-486.46M	-51.31M	-80.16M	158.62M

EC Healthcare Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.75
• 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:2138, the sentiment is Positive. The current price of 0.75 is above the 20-day moving average (MA) of 0.66, above the 50-day MA of 0.62, and above the 200-day MA of 0.66, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 75.77 is Negative, neither overbought nor oversold. The STOCH value of 74.87 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2145	77 Outperform	HK$38.74B	44.12	37.28%	1.74%	59.83%	68.29%
2367	67 Neutral	HK$62.82B	26.08	36.16%	1.11%	54.44%	35.90%
2023	65 Neutral	HK$422.95M	7.43	12.01%	―	25.55%	14.47%
3332	61 Neutral	HK$648.05M	10.10	8.96%	―	30.72%	-35.61%
Sector *	57 Neutral	£5.18B	4.90	-44.55%	2.33%	28.89%	-10.08%
2138	56 Neutral	HK$888.91M	19.67	-8.91%	1.33%	-1.68%	-781.88%
NBBTF	―	$143.27M	―	-12.38%	―	―	―

EC Healthcare Corporate Events

EC Healthcare Announces Annual General Meeting and Key Resolutions

EC Healthcare has announced its upcoming annual general meeting, scheduled for August 22, 2025. Key agenda items include the adoption of financial statements, re-election of directors, and re-appointment of auditors. The meeting will also address the authorization for directors to manage share allotments and related securities, which could impact the company’s capital structure and shareholder value.

EC Healthcare Announces Change in Share Registrar

EC Healthcare has announced a change in its Hong Kong Share Registrar and Transfer Office, effective from July 14, 2025. This transition to Tricor Investor Services Limited is expected to streamline the registration and transfer of shares, potentially impacting shareholder operations and enhancing the company’s administrative efficiency.

EC Healthcare Updates Nomination Committee Terms to Enhance Governance

EC Healthcare has revised the terms of reference for its Nomination Committee, which is responsible for ensuring the board’s composition aligns with the company’s strategic goals. The committee will focus on maintaining a balance of skills, diversity, and knowledge among board members, assisting in succession planning, and reviewing the board’s structure and composition annually. This move is aimed at enhancing corporate governance and aligning with the company’s diversity policy, potentially impacting the company’s strategic direction and stakeholder relations.

EC Healthcare Updates Board of Directors and Committee Roles

EC Healthcare has announced an updated list of its board of directors, effective from June 23, 2025. The announcement outlines the roles of executive, non-executive, and independent non-executive directors, as well as the composition of the Audit, Remuneration, and Nomination Committees. This update may impact the company’s governance and strategic direction, potentially influencing its market positioning and stakeholder confidence.

EC Healthcare Strengthens Governance with New Nomination Committee Appointments

EC Healthcare, a company incorporated in the Cayman Islands, has announced the appointment of Mrs. Leung Yang, Shih Ti Marianne, a non-executive director, and Mr. Ma Ching Nam, an independent non-executive director, as members of its nomination committee effective from June 23, 2025. This strategic move is expected to enhance the governance structure of EC Healthcare, potentially impacting its operational efficiency and stakeholder confidence positively.

EC Healthcare Reports Annual Results with Revenue Decline and Net Loss

EC Healthcare reported its annual results for the year ended March 31, 2025, showing a slight decline in total revenue by 1.7% to HK$4,140.2 million. The company experienced a significant net loss of HK$111.9 million compared to a profit of HK$15.7 million the previous year, largely due to a decrease in EBITDA by 20.7%. Despite the financial downturn, the company managed to increase its net cash generated from operating activities by 7.9% and reduced its total debt, indicating a focus on strengthening its financial position.

EC Healthcare Issues Profit Warning Amidst Impairments

EC Healthcare has issued a profit warning for the fiscal year ending March 2025, anticipating a significant decrease in EBITDA to approximately HK$300-310 million from HK$388.1 million in the previous year. The company expects to report a loss attributable to equity holders between HK$170 million and HK$190 million, largely due to non-cash impairments and fair value losses. Despite these challenges, the company maintains a strong cash position of approximately HK$1,000 million, indicating resilience in its balance sheet. The announcement highlights the impact of weakened consumer sentiment on future cash flow expectations, though the impairments are non-cash and will not affect operational cash flow.