EC Healthcare (2138) AI Stock Analysis

• Market Cap: HK$675.57M
• Dividend Yield: 1.75%
• Average Volume (3M): 629.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.47
• Revenue Growth: -3.49%
• EPS Growth: -1567.01%
• Country: HK
• Employees: 2,872
• Sector: Healthcare
• Sector Strength: 45
• Industry: Household & Personal Products
• EPS (TTM): >-0.01
• Shares Outstanding: 1,185,211,300
• 10 Day Avg. Volume: 673,306
• 30 Day Avg. Volume: 629,783
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$0.50 ▼(-12.28% Downside)

The overall stock score of 45 reflects significant financial challenges, including declining revenue and profitability, and bearish technical indicators. The valuation is unattractive due to negative earnings. Despite some strength in cash flow generation, the stock faces considerable headwinds.

Positive Factors

Cash Flow Generation

The growth in free cash flow indicates strong cash generation capabilities, providing a buffer against operational challenges and supporting potential investments or debt reduction.

High Gross Profit Margin

A high gross profit margin suggests efficient cost management and pricing power, which can contribute to long-term profitability if operational issues are addressed.

Diverse Revenue Streams

Diverse revenue streams from various healthcare services and products reduce dependency on a single segment, enhancing resilience against market fluctuations.

Negative Factors

Declining Revenue

A significant decline in revenue indicates potential loss of market share or demand, which could impact long-term growth and sustainability if not addressed.

Negative Net Profit Margin

A negative net profit margin reflects ongoing losses, which can erode shareholder value and limit the company's ability to reinvest in growth opportunities.

Negative Return on Equity

Negative return on equity suggests the company is not effectively using shareholder funds to generate profits, which could deter investment and impact long-term viability.

EC Healthcare Business Overview & Revenue Model

Company Description

EC Healthcare (2138) is a leading healthcare service provider based in Hong Kong, specializing in a wide range of medical and wellness services. The company operates an extensive network of clinics and healthcare facilities, offering services that include general medical consultations, specialized treatments, diagnostic services, and aesthetic medical services. EC Healthcare focuses on delivering high-quality care through its integrated healthcare model, which combines traditional medical practices with innovative health solutions to meet the diverse needs of its patients.

How the Company Makes Money

EC Healthcare generates revenue primarily through the provision of healthcare services across its various clinics and facilities. Key revenue streams include consultation fees, treatment charges, and diagnostic services. The company also earns income from its aesthetic services, which have gained popularity in recent years. Additionally, EC Healthcare may have partnerships with insurance companies, which can provide a steady flow of patients and reimbursement for services rendered. The company’s expansion strategy, including potential mergers and acquisitions, further enhances its revenue potential by increasing its market presence and service offerings.

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 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.14B	4.14B	4.21B	3.88B	2.92B	2.08B
Gross Profit	3.34B	3.34B	3.54B	3.32B	2.57B	1.85B
EBITDA	619.28M	619.28M	743.26M	786.56M	802.68M	599.41M
Net Income	-167.19M	-167.19M	-18.95M	69.65M	197.50M	192.87M
Balance Sheet
Total Assets	5.03B	5.03B	5.37B	5.51B	4.86B	3.79B
Cash, Cash Equivalents and Short-Term Investments	1.07B	1.07B	606.32M	726.84M	872.07M	938.70M
Total Debt	1.34B	1.34B	1.60B	1.53B	941.11M	1.03B
Total Liabilities	2.82B	2.82B	2.97B	3.14B	2.51B	2.16B
Stockholders Equity	1.79B	1.79B	1.96B	1.85B	1.88B	1.27B
Cash Flow
Free Cash Flow	686.07M	686.07M	527.88M	195.83M	348.09M	471.71M
Operating Cash Flow	743.24M	743.24M	689.10M	608.32M	608.36M	620.81M
Investing Cash Flow	341.28M	341.28M	-358.36M	-715.62M	-571.19M	-369.02M
Financing Cash Flow	-633.79M	-633.79M	-486.46M	-51.31M	-99.95M	156.78M

EC Healthcare Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2138, the sentiment is Negative. The current price of 0.57 is below the 20-day moving average (MA) of 0.58, below the 50-day MA of 0.62, and below the 200-day MA of 0.67, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 45.87 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2138.

EC Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2023	66 Neutral	HK$359.01M	6.31	10.92%	―	11.10%	-4.38%
2367	66 Neutral	HK$38.13B	15.02	29.64%	1.86%	36.70%	22.26%
2145	61 Neutral	HK$35.99B	35.24	39.62%	2.50%	20.78%	18.37%
3332	56 Neutral	HK$631.85M	18.18	3.92%	―	-0.92%	-71.88%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
2138	45 Neutral	HK$675.57M	-3.59	-10.08%	1.75%	-3.49%	-1567.01%
0157	41 Neutral	HK$981.03M	-15.76	-12.38%	―	39.29%	-71.82%

EC Healthcare Corporate Events

EC Healthcare Reports Decline in Interim Financial Results

EC Healthcare reported its interim financial results for the six months ending September 30, 2025, showing a decline in total revenue by 6.4% compared to the previous year. The company experienced a significant drop in net profit by 89.5%, primarily due to decreased revenue in its medical segment and increased costs. Despite these challenges, the aesthetic medical and beauty segment saw a growth of 7.3%. The financial results indicate a challenging period for EC Healthcare, impacting its profitability and market positioning.

EC Healthcare Issues Profit Warning Amid Declining Revenue and Profit

EC Healthcare has issued a profit warning, indicating a potential decrease in revenue, EBITDA, and net profit for the six months ending September 2025. This decline is attributed to weak local consumption sentiment, reduced revenue from disposed medical assets, and a less favorable service mix. Despite these challenges, the company maintains a strong balance sheet with significant cash reserves.

EC Healthcare Schedules Board Meeting to Review Interim Results

EC Healthcare has announced that its board of directors will meet on 28 November 2025 to consider and approve the interim results for the six months ending 30 September 2025. The board will also discuss the potential payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial health and potential returns for stakeholders.