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

• Market Cap: HK$932.72M
• Dividend Yield: N/A
• Average Volume (3M): 1.10M
• 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: 52
• Industry: Medical - Devices
• EPS (TTM): -0.44
• Shares Outstanding: 82,713,840
• 10 Day Avg. Volume: 1,291,500
• 30 Day Avg. Volume: 1,101,283
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$3.50
• Price Target Upside: 2.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: HK$3.50 ▲(2.64% Upside)

The overall stock score is primarily influenced by financial performance, which highlights strong revenue growth but significant challenges in profitability and cash flow management. Technical analysis suggests a bullish trend, though the stock may be overbought. Valuation concerns persist due to negative earnings and lack of dividends, impacting the overall attractiveness of the stock.

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. primarily generates revenue through the sale of genetic testing kits and precision medicine solutions. The company's revenue streams include direct sales to hospitals and healthcare providers, partnerships with research institutions for collaborative developments, and licensing agreements for proprietary technologies. Additionally, Suzhou Basecare may derive income from government grants and subsidies aimed at promoting innovation in biotechnology. The company's focus on R&D and strategic alliances with industry leaders further bolster its market position and financial performance.

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

Summary

Suzhou Basecare Medical Corp. Ltd. exhibits robust revenue growth, driven by increased sales, however, it 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. Overall, while the company shows promising growth prospects, improving operational efficiency and managing leverage are essential for enhancing financial health.

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

Suzhou Basecare Medical Corp. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2170, the sentiment is Positive. The current price of 3.41 is below the 20-day moving average (MA) of 3.51, above the 50-day MA of 3.14, and above the 200-day MA of 3.06, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 54.52 is Neutral, neither overbought nor oversold. The STOCH value of 16.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
2170	55 Neutral	HK$932.72M	―	-20.60%	―	11.43%	4.88%
Sector *	51 Neutral	$7.95B	-0.38	-42.44%	2.22%	22.30%	-1.83%
4WO	―	€558.27M	―	-11.20%	―	―	―
2216	57 Neutral	HK$1.85B	―	-8.93%	―	-30.60%	28.61%
2160	51 Neutral	HK$3.55B	668.18	0.22%	―	-4.38%	―
2235	―	HK$3.60B	―	-1.39%	―	―	―
2500	51 Neutral	HK$1.86B	―	-26.80%	―	-8.56%	-14.84%

Suzhou Basecare Medical Corp. Ltd. Class H Corporate Events

Suzhou Basecare Medical Updates Nomination Committee for Governance Compliance

Suzhou Basecare Medical Corp. Ltd. announced changes to its Nomination Committee to align with the revised Corporate Governance Code effective from July 1, 2025. The appointment of Ms. Jiang Junchao and Dr. Yeung Shu Biu William as new members is expected to enhance the company’s governance structure and compliance with regulatory requirements.

Suzhou Basecare Medical Enhances Governance with New Nomination Committee

Suzhou Basecare Medical Corporation Limited has established a Nomination Committee as a specialized body under its Board to oversee the selection of candidates for directors and senior management positions. This move is designed to improve the company’s corporate governance by ensuring a well-structured and rationalized board composition, which is expected to positively impact its operational efficiency and strategic decision-making.

Suzhou Basecare Medical Announces AGM and Shareholder Meeting Results

Suzhou Basecare Medical Corp. Ltd. announced the poll results of its 2024 Annual General Meeting and the 2025 First Class Meetings for various shareholders. While most resolutions were passed, a resolution at the H Shareholders Class Meeting was not approved. The meetings were conducted in compliance with relevant laws and regulations, and the results are considered lawful and valid. This announcement reflects the company’s ongoing governance processes and may impact its shareholder relations and strategic decisions moving forward.