Kato (Hong Kong) Holdings Ltd. (HK:2189)
:2189
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Kato (Hong Kong) Holdings Ltd.
(2189)
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Rating:60Neutral
Price Target:
HK$0.47
▲(3.78% Upside)
Action:ReiteratedDate:03/24/26
The score is driven primarily by weakening financial quality (sharp margin and ROE compression and weaker free cash flow) despite revenue growth and improving leverage. Technical indicators are also soft, while the low P/E and ~4.5% dividend yield meaningfully support the overall score.
Positive Factors
Revenue Growth
Sustained top-line growth (+11.6% in FY2025) reflects rising demand for residential elderly care and stronger occupancy/fee intake. Over a multi-month horizon this supports stable revenue base, capacity utilization, and scalability of care services amid demographic tailwinds.
Negative Factors
Margin Compression
Sharp net margin decline signals meaningful pressure on profitability, potentially from higher operating costs, pricing mix shifts, or one-off changes. Persistently lower margins erode earnings power, reduce reinvestment capacity, and make dividends and returns more sensitive to revenue shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained top-line growth (+11.6% in FY2025) reflects rising demand for residential elderly care and stronger occupancy/fee intake. Over a multi-month horizon this supports stable revenue base, capacity utilization, and scalability of care services amid demographic tailwinds.
Read all positive factors
Kato (Hong Kong) Holdings Ltd. (2189) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$475.00M
Dividend Yield4.49%
Average Volume (3M)297.35K
Price to Earnings (P/E)4.1
Beta (1Y)0.07
Revenue Growth20.85%
EPS Growth-66.81%
CountryHK
Employees581
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.03
Shares Outstanding1,000,000,000
10 Day Avg. Volume72,800
30 Day Avg. Volume297,350
Financial Highlights & Ratios
PEG Ratio-0.33
Price to Book (P/B)1.08
Price to Sales (P/S)1.48
P/FCF Ratio6.61
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Kato (Hong Kong) Holdings Ltd. Business Overview & Revenue Model
Company Description
Kato (Hong Kong) Holdings Limited, an investment holding company, engages in the provision of residential and day care services for the elderly in Hong Kong. The company provides a range of residential care services for the elderly, including acco...
Kato (Hong Kong) Holdings Ltd. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
64
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 343.39M | 317.11M | 271.33M | 408.30M | 320.34M | 256.53M |
| Gross Profit | 109.32M | 296.85M | 135.21M | 185.43M | 143.75M | 123.15M |
| EBITDA | 119.28M | 96.84M | 133.61M | 206.90M | 161.67M | 131.88M |
| Net Income | 23.20M | 21.88M | 64.19M | 126.15M | 98.94M | 79.87M |
Balance Sheet | ||||||
| Total Assets | 791.44M | 809.57M | 863.30M | 699.30M | 621.62M | 602.60M |
| Cash, Cash Equivalents and Short-Term Investments | 57.06M | 52.66M | 68.71M | 78.53M | 58.24M | 109.12M |
| Total Debt | 379.32M | 332.96M | 384.30M | 270.03M | 294.79M | 342.05M |
| Total Liabilities | 339.75M | 367.34M | 428.77M | 326.36M | 329.41M | 369.44M |
| Stockholders Equity | 443.73M | 436.75M | 434.29M | 372.63M | 291.53M | 232.63M |
Cash Flow | ||||||
| Free Cash Flow | 78.40M | 71.11M | 108.10M | 103.78M | 42.00M | 111.80M |
| Operating Cash Flow | 101.40M | 90.89M | 132.42M | 159.91M | 118.98M | 117.95M |
| Investing Cash Flow | -17.10M | 9.29M | -236.10M | -55.89M | -75.39M | -105.33M |
| Financing Cash Flow | -82.29M | -86.55M | 69.67M | -84.02M | -93.67M | 52.25M |
Kato (Hong Kong) Holdings Ltd. Technical Analysis
Positive
0.45
Price Trends
0.45
Positive
0.45
Positive
0.44
Positive
Market Momentum
<0.01
Negative
68.40
Neutral
70.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2189, the sentiment is Positive. The current price of 0.45 is below the 20-day moving average (MA) of 0.45, above the 50-day MA of 0.45, and above the 200-day MA of 0.44, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 68.40 is Neutral, neither overbought nor oversold. The STOCH value of 70.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2189.
Kato (Hong Kong) Holdings Ltd. Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | HK$356.42M | 4.98 | 4.28% | 7.10% | -2.88% | -22.83% | |
71 Outperform | HK$678.82M | 3.30 | 5.29% | 9.14% | 0.47% | 50.46% | |
60 Neutral | HK$475.00M | 4.08 | 5.27% | 4.49% | 20.85% | -66.81% | |
56 Neutral | HK$545.87M | 5.00 | 31.63% | ― | 2.30% | ― | |
54 Neutral | HK$263.57M | -2.55 | -25.22% | 3.16% | -21.31% | -149.92% | |
52 Neutral | HK$311.23M | 4.11 | 3.54% | 3.75% | 9.07% | 8.95% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
HK:2189
Kato (Hong Kong) Holdings Ltd.
0.48
0.07
15.85%
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0.82
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New Century Healthcare Holding Co. Ltd.
0.54
-0.59
-52.21%
HK:3689
Guangdong Kanghua Healthcare Co., Ltd. Class H
2.03
0.21
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Hospital Corporation of China Ltd
3.95
-2.85
-41.91%
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UMP Healthcare Holdings Limited
0.45
0.08
20.92%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.