Universal Health International Group Holding Ltd. (2211) AI Stock Analysis

• Market Cap: HK$120.16M
• Dividend Yield: N/A
• Average Volume (3M): 199.61K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 1.20
• Revenue Growth: -15.49%
• EPS Growth: N/A
• Country: HK
• Employees: 1,198
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Pharmaceuticals
• EPS (TTM): -0.11
• Shares Outstanding: 80,105,960
• 10 Day Avg. Volume: 208,419
• 30 Day Avg. Volume: 199,608
• 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$1.50
• Price Target Upside: -2.60% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: HK$1.50 ▼(-2.60% Downside)

The stock's overall score is primarily influenced by its financial performance, which highlights significant challenges such as declining revenues and profitability. Technical analysis provides a positive outlook with strong momentum, offsetting some of the financial concerns. Valuation suggests the stock may be undervalued, but the lack of a dividend yield reduces its appeal. Earnings call and corporate events do not contribute to the score due to lack of data.

Positive Factors

Strategic Share Capital Increase

The increase in share capital enhances financial flexibility, supporting growth initiatives and potentially improving market positioning.

Partnerships with Manufacturers

Strategic partnerships allow access to a wide product range, bolstering competitive advantage and market reach in the healthcare sector.

Expansive Distribution Network

A strong distribution network enhances market penetration and customer reach, crucial for sustained growth in the healthcare industry.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market demand or competitive positioning, potentially impacting long-term growth prospects.

Negative Cash Flow

Negative cash flow reflects operational inefficiencies and limits the ability to reinvest in growth, affecting financial stability.

Weak Profit Margins

Weak profit margins suggest cost management issues, reducing profitability and potentially hindering investment in strategic initiatives.

Universal Health International Group Holding Ltd. Business Overview & Revenue Model

Company Description

Universal Health International Group Holding Limited, an investment holding company, engages in the distribution, wholesale, and retail of drugs, healthcare products, and other pharmaceutical products in the northeastern region of the People's Republic of China. Its product categories include Chinese patent medicines, chemical preparations, antibiotics and biochemical drugs, traditional Chinese medicine decoction pieces, biological products, protein assimilation preparations, peptide hormones, blood products, disinfection products, medical equipment, prepackaged foods, nutritional foods, health care products, stereotyped packaging cosmetics, and daily necessities, as well as family planning supplies, such as contraceptives and utensils; dairy products comprise infant formula milk powder; etc. The company also provides storage services. It serves pharmaceutical retailers, hospitals, clinics, and distributors. The company was formerly known as Jintian Pharmaceutical Group Limited and changed its name to Universal Health International Group Holding Limited in July 2015. Universal Health International Group Holding Limited was founded in 1998 and is headquartered in Shenyang, the People's Republic of China.

How the Company Makes Money

Universal Health International Group Holding Ltd. generates revenue through the sale of pharmaceutical and healthcare products. Its primary revenue streams include the wholesale distribution of medicines to healthcare institutions, retail sales through pharmacies and online platforms, and the provision of medical devices. The company benefits from strategic partnerships with pharmaceutical manufacturers, enabling it to offer a diverse range of products. Additionally, its expansive distribution network and focus on the growing Chinese healthcare market contribute significantly to its earnings.

Universal Health International Group Holding Ltd. Financial Statement Overview

Summary

Universal Health International Group Holding Ltd. is experiencing financial difficulties with declining revenues and profitability. Although there's a positive net income for 2024, operational and cash flow challenges persist, with weak margins and a negative operating cash flow.

Income Statement

The company has experienced declining revenue over the past few years, with a significant drop from 2019 to 2024. In 2024, the gross profit margin is approximately 16.52%, which is low, indicating cost management issues. Despite a positive net income for the first time in years, the net profit margin remains minimal at 0.38%. The EBIT and EBITDA margins are also very slim, highlighting operational inefficiencies.

Balance Sheet

The balance sheet shows a relatively stable equity position, with a modest debt-to-equity ratio of 0.20 in 2024, suggesting reasonable leverage. However, the equity ratio has decreased over the years, standing at 50.90% in 2024. The return on equity in 2024 is low at 0.12%, indicating limited profitability from shareholders' equity.

Cash Flow

Cash flow analysis reveals significant challenges, with negative operating cash flow and free cash flow in 2024. The company has not shown substantial improvement in cash flow generation over the years. The operating cash flow to net income ratio is negative, reflecting poor cash conversion from profits.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	938.85M	1.09B	1.46B	1.54B	1.39B	1.67B
Gross Profit	154.07M	179.88M	222.60M	215.32M	56.19M	160.56M
EBITDA	32.99M	12.59M	-82.27M	-160.78M	-560.83M	-446.66M
Net Income	13.33M	413.00K	-118.73M	-226.85M	-790.91M	-544.69M
Balance Sheet
Total Assets	606.06M	692.88M	797.10M	983.55M	1.15B	1.64B
Cash, Cash Equivalents and Short-Term Investments	50.71M	36.92M	89.37M	103.48M	81.51M	193.43M
Total Debt	22.00M	70.60M	93.18M	81.56M	46.46M	65.05M
Total Liabilities	265.63M	339.99M	457.57M	504.47M	459.02M	273.63M
Stockholders Equity	339.93M	352.72M	339.53M	478.40M	691.04M	1.36B
Cash Flow
Free Cash Flow	8.69M	-101.75M	-19.47M	-47.94M	-126.92M	-555.63M
Operating Cash Flow	8.69M	-101.73M	-19.40M	-47.81M	-124.67M	-449.52M
Investing Cash Flow	14.24M	54.88M	460.72K	4.81M	9.33M	-109.65M
Financing Cash Flow	-8.60M	40.23M	12.70M	67.66M	-11.96M	7.85M

Universal Health International Group Holding Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2211, the sentiment is Positive. The current price of 1.54 is above the 20-day moving average (MA) of 1.39, above the 50-day MA of 1.32, and above the 200-day MA of 1.27, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 60.99 is Neutral, neither overbought nor oversold. The STOCH value of 62.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2211.

Universal Health International Group Holding Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0722	78 Outperform	HK$388.46M	8.94	5.95%	6.87%	0.81%	27.55%
2211	59 Neutral	HK$120.16M	6.30	4.03%	―	-15.49%	―
1110	56 Neutral	HK$327.51M	55.10	0.86%	5.87%	-10.78%	-82.81%
3390	52 Neutral	HK$290.55M	76.19	-4.89%	21.21%	-1.68%	-111.10%
Sector *	51 Neutral	$8.02B	-0.31	-43.38%	2.24%	22.31%	-2.14%
2197	51 Neutral	HK$2.22B	―		―	79.98%	-3.40%
2393	40 Underperform	HK$291.20M	0.31	-29.79%	―	6.10%	-115.12%

Universal Health International Group Holding Ltd. Corporate Events

Universal Health International Plans Share Capital Increase

Universal Health International Group Holding Ltd. has announced an extraordinary general meeting to consider an increase in its authorized share capital from US$10,000,000 to US$50,000,000. This strategic move aims to enhance the company’s financial flexibility and support its growth initiatives, potentially impacting its market positioning and shareholder value.

Universal Health International Proposes Significant Increase in Share Capital

Universal Health International Group Holding Ltd. has announced a proposal to increase its authorised share capital from US$10 million to US$50 million, creating an additional 400 million shares. This move is intended to accommodate a subscription of new shares and provide flexibility for future fundraising to support the company’s growth and development. The proposal is subject to shareholder approval at an upcoming extraordinary general meeting. While the company currently has no immediate plans for equity fundraising, it remains open to potential opportunities to support its operations and future development.

Universal Health International Approves Key Subscription Agreement

Universal Health International Group Holding Ltd. announced the successful passage of a resolution at its extraordinary general meeting held on July 23, 2025. The resolution, which was approved unanimously, involves a subscription agreement with Huang Yu Holdings Limited, allowing the company to issue new shares. This move is expected to enhance the company’s financial flexibility and support its growth strategy, potentially impacting its market positioning positively.

Universal Health International Announces EGM for Strategic Share Issuance

Universal Health International Group Holding Limited has announced an extraordinary general meeting (EGM) to be held on July 23, 2025, in Shenyang City, China. The meeting will address a subscription agreement with Huang Yu Holdings Limited, involving the issuance of over 30 million shares at HK$0.80 each. This strategic move is expected to impact the company’s capital structure and potentially enhance its market positioning.

Universal Health International Delays Circular Dispatch for Share Subscription

Universal Health International Group Holding Limited, a company incorporated in the Cayman Islands, has announced a delay in the dispatch of a circular related to the subscription of new shares under a specific mandate. The circular, which was initially expected to be sent to shareholders by June 30, 2025, will now be dispatched on or before July 4, 2025, due to the need for additional time to prepare and finalize certain information.

Universal Health International Delays Circular Dispatch for Share Subscription

Universal Health International Group Holding Ltd., incorporated in the Cayman Islands, has announced a delay in the dispatch of a circular related to the subscription of new shares under a specific mandate. The circular, initially expected to be sent to shareholders by June 17, 2025, will now be dispatched by June 30, 2025, due to the need for additional time to prepare and finalize certain information.

Universal Health International Announces Delay in Circular Dispatch

Universal Health International Group Holding Ltd. announced a delay in the dispatch of a circular related to the subscription of new shares. The circular, originally expected by June 3, 2025, will now be dispatched by June 17, 2025, due to the need for additional time to prepare and finalize certain information. This delay may impact shareholder expectations and the company’s timeline for executing its strategic initiatives.

Universal Health International Approves Share Consolidation

Universal Health International Group Holding Ltd. announced the results of its Extraordinary General Meeting held on May 28, 2025, where a resolution for share consolidation was approved unanimously. The share consolidation will be effective on May 30, 2025, impacting the trading of shares and the adjustment of share options, which could influence the company’s stock market performance and shareholder value.

Universal Health Clarifies Ownership Structure in Share Subscription

Universal Health International Group Holding Ltd. issued a clarification regarding the ownership structure of a subscriber involved in a share subscription under a specific mandate. The company corrected a clerical error, confirming that the subscriber is wholly owned by Ms. Guo Bing, with a subsidiary owned 89% by the subscriber and 11% by the company. This announcement maintains the integrity of the company’s disclosure practices, ensuring accurate information for stakeholders.

Universal Health International Announces New Share Subscription to Boost Capital

Universal Health International Group Holding Ltd. has entered into a Subscription Agreement to issue new shares, raising approximately HK$24.35 million. This move, which involves a significant portion of the company’s share capital, is intended to bolster the company’s general working capital and enhance its financial stability. The subscription is contingent upon several conditions, including shareholder approval and share consolidation, highlighting the company’s strategic efforts to strengthen its market position.

Universal Health International Proposes Share Consolidation at Upcoming EGM

Universal Health International Group Holding Ltd. has announced an extraordinary general meeting (EGM) to discuss a proposed share consolidation. The proposal involves consolidating every ten issued and unissued ordinary shares into one, subject to approval by the Stock Exchange of Hong Kong Limited. This move is aimed at streamlining the company’s share structure and potentially enhancing share value, which could have implications for shareholders and market positioning.