Suzhou Basecare Medical Corp. Ltd. Class H (2170) AI Stock Analysis

• Market Cap: HK$582.61M
• Dividend Yield: N/A
• Average Volume (3M): 121.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: 11.43%
• EPS Growth: 4.88%
• Country: HK
• Employees: 497
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.45
• Shares Outstanding: 82,713,840
• 10 Day Avg. Volume: 98,950
• 30 Day Avg. Volume: 121,733
• PEG Ratio: -0.12
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 2.35
• P/FCF Ratio: -2.18
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: HK$2.00 ▲(1.52% Upside)

The overall stock score of 44 reflects significant challenges in financial performance, technical analysis, and valuation. The company's strong revenue growth is overshadowed by high operating costs and leverage risks, while bearish technical indicators and a negative P/E ratio further weigh down the score. Improvement in operational efficiency and financial stability is crucial for enhancing the stock's attractiveness.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates successful market penetration and product adoption, which can drive long-term business expansion and stability.

Product Diversification

A diversified product portfolio reduces dependency on a single revenue stream, enhancing resilience against market fluctuations and supporting sustainable growth.

Innovation Focus

Continuous innovation through R&D strengthens competitive advantage and positions the company to adapt to industry changes, ensuring long-term relevance.

Negative Factors

High Operating Costs

High operating costs can erode profit margins and limit the company's ability to reinvest in growth initiatives, potentially impacting long-term profitability.

Leverage Risks

Excessive leverage can strain financial resources, increasing vulnerability to economic downturns and limiting strategic flexibility.

Cash Flow Challenges

Negative cash flow from operations indicates difficulty in generating cash internally, which may necessitate external financing and affect financial health.

Suzhou Basecare Medical Corp. Ltd. Class H Business Overview & Revenue Model

Company Description

Suzhou Basecare Medical Corporation Limited, an investment holding company, engages in the research, development, manufacture, and provision of genetic testing solutions for assisted reproduction and sale of genetic testing devices and instruments in the People's Republic of China. The company offers genetic test kit products, which include pre-implantation genetic test kits, such as PGT-A to detect aneuploidy; PGT-M to detect single-gene or monogenic defects in pre-implantation embryos; and PGT-SR kits to detect chromosome structural rearrangements, which are common causes of recurrent miscarriage. It also provides prenatal test kit products comprising CNV kits; postnatal test kit products consist of WES kits; and devices and instruments, including liquid nitrogen storage dewar, cryostorage system, automated workstation, sperm quality analyzer, and NGS sequencer. The company also engages in the research, development, manufacture, and sale of medical devices and instruments. In addition, it provides marketing services; and engages in the research and development of software for medical devices and instruments. The company serves hospitals and reproductive clinics. Suzhou Basecare Medical Corporation Limited was incorporated in 2010 and is headquartered in Suzhou, China.

How the Company Makes Money

Suzhou Basecare Medical Corp. Ltd. generates revenue through multiple streams, primarily by selling its medical devices and diagnostic products to hospitals, clinics, and healthcare providers. The company benefits from a diversified product portfolio, including imaging systems and diagnostic kits, which contribute significantly to its sales. Additionally, Basecare may engage in strategic partnerships with other medical technology firms or research institutions to co-develop products, thereby expanding its market reach and enhancing its revenue potential. The company's focus on research and development enables it to innovate continuously, which helps maintain a competitive edge and drives sales growth. Furthermore, Basecare may also generate income through service contracts, maintenance agreements, and training programs related to its products.

Suzhou Basecare Medical Corp. Ltd. Class H Financial Statement Overview

Summary

Suzhou Basecare Medical Corp. Ltd. exhibits robust revenue growth driven by increased sales, but struggles with profitability due to high operating costs. The balance sheet indicates a sound equity base but is offset by high leverage, posing risks in financial stability. Cash flow generation remains a critical challenge, with persistent operational cash deficits undermining financial resilience.

Income Statement

The company shows strong revenue growth with a consistent increase in total revenue over the years, indicating solid sales expansion. However, the net profit margin remains negative due to high operating expenses, impacting overall profitability. The gross profit margin is healthy, suggesting effective cost management in production, but the negative EBIT and EBITDA margins highlight ongoing challenges in operating efficiency.

Balance Sheet

The balance sheet reflects a stable equity base with a solid equity ratio, indicating strong capital structure. However, the high debt-to-equity ratio suggests potential leverage risk. The positive cash and short-term investments position bolsters liquidity, yet the negative net income limits return on equity, which remains a concern for investors.

Cash Flow

The cash flow statement shows consistent negative operating cash flow, raising concerns about the company's ability to generate cash from its core operations. The free cash flow position is improving, yet still negative, highlighting challenges in sustaining growth without external financing. The inability to convert operating cash flow to net income efficiently is a key area that needs attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	275.71M	299.11M	207.98M	140.90M	107.30M	81.11M
Gross Profit	131.54M	136.22M	91.35M	59.53M	51.15M	27.71M
EBITDA	-226.62M	-253.30M	-174.14M	-117.73M	-118.88M	-873.32M
Net Income	-238.59M	-237.03M	-191.69M	-123.16M	-143.65M	-877.05M
Balance Sheet
Total Assets	1.57B	1.67B	1.90B	1.78B	1.80B	350.30M
Cash, Cash Equivalents and Short-Term Investments	545.48M	684.63M	945.71M	1.33B	1.52B	192.32M
Total Debt	342.23M	328.42M	281.92M	75.54M	48.57M	31.47M
Total Liabilities	535.35M	527.47M	499.98M	188.33M	85.85M	68.96M
Stockholders Equity	1.03B	1.14B	1.40B	1.59B	1.72B	281.33M
Cash Flow
Free Cash Flow	-297.35M	-322.41M	-371.44M	-317.52M	-234.71M	-72.38M
Operating Cash Flow	-207.59M	-229.12M	-267.23M	-188.77M	-197.85M	-64.29M
Investing Cash Flow	-1.63M	-181.19M	-324.81M	-88.70M	-56.60M	33.53M
Financing Cash Flow	-2.45M	33.78M	190.55M	23.51M	1.60B	207.47M

Suzhou Basecare Medical Corp. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2170, the sentiment is Neutral. The current price of 1.97 is below the 20-day moving average (MA) of 2.06, below the 50-day MA of 2.20, and below the 200-day MA of 2.86, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 51.74 is Neutral, neither overbought nor oversold. The STOCH value of 82.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2170.

Suzhou Basecare Medical Corp. Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
2160	46 Neutral	HK$7.64B	545.45	0.22%	―	-4.38%	―
2170	44 Neutral	HK$582.61M	-2.26	-20.60%	―	11.43%	4.88%
2235	44 Neutral	HK$3.15B	-103.74	-1.39%	―	49.86%	80.35%
2500	41 Neutral	HK$1.12B	-1.59	-26.80%	―	-8.56%	-14.84%
2216	40 Neutral	HK$1.27B	-9.86	-8.93%	―	-30.60%	28.61%
9996	39 Underperform	HK$4.43B	-18.06	-11.20%	―	29.25%	9.02%