JBM (Healthcare) Ltd. (2161) AI Stock Analysis

• Market Cap: HK$2.20B
• Dividend Yield: 9.98%
• Average Volume (3M): 599.79K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.17
• Revenue Growth: 12.83%
• EPS Growth: 36.12%
• Country: HK
• Employees: 279
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.14
• Shares Outstanding: 822,000,000
• 10 Day Avg. Volume: 515,131
• 30 Day Avg. Volume: 599,792
• PEG Ratio: 0.12
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 1.87
• P/FCF Ratio: 7.12
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: HK$3.50 ▲(28.68% Upside)

JBM (Healthcare) Ltd. demonstrates strong financial performance with robust revenue growth and profitability, supported by a solid balance sheet. The valuation is attractive with a reasonable P/E ratio and high dividend yield. However, technical indicators suggest a neutral market sentiment, which slightly tempers the overall score.

Positive Factors

Revenue Growth

The company's robust revenue growth of 20.65% indicates strong market demand and effective business strategies, supporting long-term expansion.

Profitability Margins

High profitability margins suggest efficient cost management and pricing power, which can sustain long-term financial health and shareholder value.

Balance Sheet Strength

Low leverage enhances financial flexibility and reduces risk, allowing the company to invest in growth opportunities and weather economic downturns.

Negative Factors

Decline in Free Cash Flow Growth

A decline in free cash flow growth may limit the company's ability to fund new projects or return capital to shareholders, impacting long-term growth potential.

Cash Flow Management

While cash generation is adequate, the ratios indicate that cash flow management needs improvement to ensure sufficient liquidity for future investments.

Monitoring Debt Levels

Although current leverage is low, vigilance is required to prevent any future increase in debt that could compromise financial stability.

JBM (Healthcare) Ltd. Business Overview & Revenue Model

Company Description

JBM (Healthcare) Limited, an investment holding company, develops, manufactures, markets, distributes, and sells healthcare and wellness products in Asia. The company offers consumer healthcare and proprietary Chinese medicines, such as over-the-counter medicines, and medicated and non-medicated solutions, as well as diagnostic devices; and pharmaceutical products. It is also involved in the trading, wholesaling, and retailing of Chinese medicines; trading of medical supplies and pharmaceutical products; and sale of healthcare and herbal products. The company was incorporated in 2020 and is headquartered in Kwun Tong, Hong Kong. JBM (Healthcare) Limited is a subsidiary of JBM Group (BVI) Limited.

How the Company Makes Money

JBM (Healthcare) Ltd. generates revenue primarily through the sale of its medical devices and healthcare solutions. The company operates on a business-to-business (B2B) model, supplying products directly to hospitals, clinics, and healthcare providers. Key revenue streams include direct product sales, recurring revenue from maintenance and service agreements, and potential licensing fees from proprietary technology. Additionally, strategic partnerships with healthcare organizations and distributors enhance market reach and drive sales growth. The company may also benefit from research and development grants or government contracts aimed at healthcare innovation.

JBM (Healthcare) Ltd. Financial Statement Overview

Summary

JBM (Healthcare) Ltd. exhibits strong financial health with impressive revenue growth and profitability margins. The balance sheet is robust with low leverage, and the company is effectively generating cash relative to its net income. However, the decline in free cash flow growth is a potential risk that needs attention.

Income Statement

JBM (Healthcare) Ltd. has demonstrated strong revenue growth with an 8.57% increase in the latest year. The company maintains healthy profitability margins, with a gross profit margin of 52.88% and a net profit margin of 25.22%. The EBIT and EBITDA margins are also robust at 31.46% and 38.15%, respectively, indicating efficient operational management. Overall, the income statement reflects a solid financial performance with consistent growth and profitability.

Balance Sheet

The balance sheet of JBM (Healthcare) Ltd. shows a strong equity position with a debt-to-equity ratio of 0.16, indicating low leverage and financial stability. The return on equity is 18.23%, which is a positive sign of shareholder value creation. The equity ratio stands at 70.05%, reflecting a solid capital structure. However, the company should monitor its debt levels to maintain this stability.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth by 19.05%, which could be a concern if it persists. However, the operating cash flow to net income ratio is 0.81, and the free cash flow to net income ratio is 0.91, indicating that the company generates sufficient cash to cover its net income. While cash flow management appears adequate, the negative growth trend should be addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	782.29M	782.29M	648.41M	520.32M	406.14M	397.16M
Gross Profit	413.71M	413.71M	338.08M	187.92M	142.30M	180.94M
EBITDA	283.54M	298.41M	220.73M	111.40M	84.14M	114.51M
Net Income	197.26M	197.26M	130.46M	57.09M	24.62M	22.60M
Balance Sheet
Total Assets	1.55B	1.55B	1.39B	1.40B	1.33B	1.38B
Cash, Cash Equivalents and Short-Term Investments	205.85M	205.85M	140.81M	152.27M	69.84M	94.38M
Total Debt	171.75M	171.75M	133.41M	180.10M	213.09M	267.92M
Total Liabilities	381.16M	381.16M	366.75M	372.10M	363.30M	434.25M
Stockholders Equity	1.08B	1.08B	970.68M	985.51M	929.20M	904.71M
Cash Flow
Free Cash Flow	205.94M	205.92M	181.00M	137.75M	52.96M	35.97M
Operating Cash Flow	226.95M	226.94M	191.22M	145.89M	60.01M	58.93M
Investing Cash Flow	-75.82M	-120.48M	8.31M	-7.05M	-7.57M	-24.63M
Financing Cash Flow	-84.20M	-41.54M	-210.72M	-56.04M	-76.85M	-13.92M

JBM (Healthcare) Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.72
• 50DMA: Negative
• 100DMA: Negative
• 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:2161, the sentiment is Neutral. The current price of 2.72 is below the 20-day moving average (MA) of 2.72, below the 50-day MA of 2.79, and above the 200-day MA of 2.56, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 49.14 is Neutral, neither overbought nor oversold. The STOCH value of 82.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2161.

JBM (Healthcare) Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2161	75 Outperform	HK$2.20B	10.09	20.78%	9.98%	12.83%	36.12%
2348	72 Outperform	HK$1.83B	9.63	5.34%	5.16%	2.89%	-68.83%
2633	69 Neutral	HK$2.38B	8.23	12.97%	15.40%	-1.88%	17.57%
3737	61 Neutral	HK$448.91M	20.15	1.87%	9.43%	-1.99%	-81.52%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1498	41 Neutral	HK$192.58M	-3.74	-33.22%	―	-17.32%	55.74%

JBM (Healthcare) Ltd. Corporate Events

JBM (Healthcare) Limited Reports Strong Interim Results with Increased Revenue and Dividends

JBM (Healthcare) Limited reported a significant financial performance for the six months ended 30 September 2025, with a 7.7% increase in revenue to approximately HK$429.6 million and a 23.8% rise in profit from operations to about HK$150.6 million compared to the same period in 2024. The company declared an interim dividend of HK9.75 cents per ordinary share, marking a 77.3% increase from the previous year, reflecting strong operational growth and a positive outlook for shareholders.

JBM (Healthcare) Ltd. Declares Interim Dividend

JBM (Healthcare) Limited announced an interim cash dividend of HKD 0.0975 per share for the six months ending on September 30, 2025, with a payment date set for December 17, 2025. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders, potentially impacting its market positioning and stakeholder relations positively.

JBM (Healthcare) Limited Schedules Board Meeting for Interim Results and Dividend Consideration

JBM (Healthcare) Limited has announced that its board of directors will meet on November 17, 2025, to review and approve the interim results for the six months ending September 30, 2025. The meeting will also consider the recommendation of an interim dividend and address any other business matters, potentially impacting the company’s financial strategy and shareholder returns.

JBM (Healthcare) Ltd. Enters New License Agreement with Europharm

JBM (Healthcare) Ltd. has entered into a new license agreement with Europharm to utilize a portion of a factory from December 2025 to January 2028. This transaction is considered a connected transaction under the Listing Rules, requiring reporting and announcement but exempt from circular and independent shareholders’ approval due to its financial scale. The agreement is expected to impact JBM’s asset acquisition strategy and reflects its ongoing operational alignment with Europharm.

JBM (Healthcare) Ltd. Appoints Dr. Xu Hong Xi as Non-Executive Director

JBM (Healthcare) Limited has appointed Dr. Xu Hong Xi as a non-executive director effective from October 2, 2025. Dr. Xu brings extensive expertise in traditional Chinese medicine and pharmaceuticals, holding significant positions in academia and industry. His appointment is expected to enhance the company’s strategic direction in traditional Chinese medicine, potentially impacting its market positioning and stakeholder interests positively.

JBM (Healthcare) Limited Updates Board of Directors

JBM (Healthcare) Limited has announced the updated list of its board of directors and their respective roles within the company, effective from October 2, 2025. This update reflects the company’s ongoing commitment to strong governance and strategic leadership, potentially impacting its operational efficiency and stakeholder confidence.