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

• Market Cap: $2.46B
• Dividend Yield: 3.19%
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.29
• Revenue Growth: 18.06%
• EPS Growth: 80.57%
• Country: HK
• Employees: 279
• Sector: Healthcare
• Sector Strength: 39
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.13
• Shares Outstanding: 822,000,000
• 10 Day Avg. Volume: 1,119,829
• 30 Day Avg. Volume: 1,426,473
• 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: 0.61
• Enterprise Value/Revenue: 1.92
• Enterprise Value/Gross Profit: 3.64
• Enterprise Value/Ebitda: 5.31
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ―

JBM (Healthcare) Ltd. exhibits a strong financial performance with robust revenue and profit growth, prudent financial management, and a solid cash flow position. The technical indicators suggest a stable trend, though further momentum analysis is constrained. The stock's low P/E ratio and high dividend yield enhance its attractiveness for investors, contributing to a positive overall score. These factors collectively position the company well for future growth, providing resilience against market fluctuations.

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 healthcare products, including medical devices, health supplements, and personal care items. The company engages in both direct sales and distribution partnerships, allowing it to reach a broader market. Additionally, JBM (Healthcare) Ltd. may leverage strategic partnerships with healthcare providers and retailers to increase its market presence and drive sales. The company's earnings are significantly influenced by its ability to innovate and introduce new products that meet the evolving needs of consumers in the healthcare industry.

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: 2.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 2.95 is below the 20-day moving average (MA) of 3.06, above the 50-day MA of 2.93, and above the 200-day MA of 2.04, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.75 is Neutral, neither overbought nor oversold. The STOCH value of 22.73 is Neutral, 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	79 Outperform	$2.46B	12.42	19.22%	3.19%	18.06%	80.57%
2633	74 Outperform	$3.12B	10.83	12.47%	3.96%	7.43%	21.88%
2348	73 Outperform	HK$2.01B	3.29	18.33%	5.57%	-9.95%	67.56%
3737	70 Outperform	HK$686.07M	7.04	8.81%	5.95%	5.79%	-43.49%
Sector *	60 Neutral	HK$17.46B	5.12	-4.88%	3.74%	9.34%	-38.39%
1498	45 Neutral	HK$185.62M	―	-26.80%	―	-6.09%	66.59%

JBM (Healthcare) Ltd. Corporate Events

JBM (Healthcare) Completes Strategic Acquisition to Expand Chinese Medicine Portfolio

JBM (Healthcare) Limited has completed the acquisition of a target company, gaining a 90% interest and making it a non-wholly owned subsidiary. This acquisition, valued at HK$171 million, is expected to enhance JBM’s portfolio by integrating the target company’s well-known product, Tin Hee Tong Tin Hee Pills, into its offerings. The move is anticipated to create synergies and expand JBM’s market reach, leveraging its experience in brand management and distribution networks.

JBM Enters 2025 License Agreement with Europharm

JBM (Healthcare) Ltd. has entered into a 2025 License Agreement with Europharm, a subsidiary of Jacobson Pharma Corporation Limited, to use a portion of a factory for three years starting from January 2025. This agreement, involving a monthly license fee of HK$218,000, is classified as a connected transaction under Hong Kong’s Listing Rules, requiring reporting and announcement but exempt from circular and independent shareholders’ approval due to its financial scale.

JBM (Healthcare) Announces Major Acquisition to Expand Market Presence

JBM (Healthcare) Limited has announced a significant acquisition of a target company, purchasing 90% of its issued share capital for HK$171,000,000. This acquisition, categorized as a discloseable transaction under Hong Kong’s Listing Rules, is expected to strengthen JBM’s market position by expanding its operational capabilities and enhancing its business portfolio.