Chaoju Eye Care Holdings Ltd. (2219) AI Stock Analysis

• Market Cap: HK$1.97B
• Dividend Yield: 8.55%
• Average Volume (3M): 555.84K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.91
• Revenue Growth: 0.61%
• EPS Growth: -15.89%
• Country: HK
• Employees: 2,608
• Sector: Healthcare
• Sector Strength: 44
• Industry: Medical - Care Facilities
• EPS (TTM): 0.09
• Shares Outstanding: 707,510,500
• 10 Day Avg. Volume: 485,050
• 30 Day Avg. Volume: 555,844
• PEG Ratio: 3.65
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.79
• 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

• Rating: 74 Outperform
• Price Target: HK$3.00 ▲(7.53%Upside)

Chaoju Eye Care Holdings Ltd. achieves a solid stock score driven by strong financial performance, attractive valuation metrics, and moderate technical indicators. The company's robust cash flow and low leverage provide financial stability, while its undervaluation suggests potential for price appreciation.

Chaoju Eye Care Holdings Ltd. Business Overview & Revenue Model

Company Description

Chaoju Eye Care Holdings Limited owns and operates a network of ophthalmic hospitals and optical centers in China. Its consumer ophthalmic services include treatments and prevention for various ophthalmic disorders, such as refractive and presbyopia correction, and myopia control, as well as optical products and services. The company also provides basic ophthalmic services, including cataract, glaucoma, ocular fundus diseases, ocular muscle diseases, refraction errors, pediatric ophthalmology, ocular surface diseases, lacrimal diseases, orbital diseases, oculoplastic, and ocular trauma. As of December 31, 2021, it operated a network of 17 ophthalmic hospitals, 24 optical centers, and 2 clinics in Zhejiang, Jiangsu, Shanxi, and Hebei provinces, as well as in Inner Mongolia. The company was founded in 1988 and is headquartered in Beijing, China.

How the Company Makes Money

Chaoju Eye Care Holdings Ltd. generates revenue primarily through the provision of medical services related to eye care. The company's key revenue streams include fees from outpatient consultations, diagnostic services, and surgical procedures. These services are provided in their network of hospitals and eye clinics, which are strategically located to serve a wide population base. Additionally, the company may engage in partnerships with other healthcare providers and institutions to expand its service offerings and reach more patients, thereby increasing its revenue potential. Factors contributing to its earnings include the growing demand for eye care services in China, driven by an aging population and increased awareness of ocular health.

Chaoju Eye Care Holdings Ltd. Financial Statement Overview

Summary

Chaoju Eye Care Holdings Ltd. demonstrates consistent revenue growth, strong gross profit margins, a healthy balance sheet with low leverage, and robust cash flow management. The slight decline in net profit margin is a minor concern but overall financial stability is solid.

Income Statement

Chaoju Eye Care Holdings Ltd. shows steady revenue growth, with a noticeable increase from 2019 to 2024. The gross profit margin has been consistent around 43-44%, indicating strong operational efficiency. However, the net profit margin saw a slight decline from 16.7% in 2023 to 13.9% in 2024, suggesting potential cost pressures or increased expenses. EBIT and EBITDA margins remain healthy, reflecting good earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio of 0.094 in 2024, indicating low leverage and financial stability. The return on equity is solid, although it decreased slightly from 9.7% in 2023 to 8.4% in 2024, reflecting reduced net income. The equity ratio remains robust at approximately 80%, showing a strong capital structure.

Cash Flow

Chaoju Eye Care demonstrates strong cash flow management, with operating cash flow consistently exceeding net income. The free cash flow grew significantly by 23.9% from 2023 to 2024, indicating improved cash generation capabilities. The free cash flow to net income ratio is high, suggesting efficient cash conversion and strong liquidity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.41B	1.37B	990.04M	997.79M	794.28M
Gross Profit	611.30M	621.13M	434.70M	448.67M	349.48M
EBITDA	335.37M	434.82M	234.40M	304.65M	259.78M
Net Income	195.08M	228.91M	187.75M	161.75M	124.14M
Balance Sheet
Total Assets	2.88B	2.92B	2.72B	2.51B	1.09B
Cash, Cash Equivalents and Short-Term Investments	1.53B	1.55B	1.68B	1.78B	415.97M
Total Debt	218.01M	200.80M	196.16M	178.65M	142.36M
Total Liabilities	554.76M	544.38M	424.68M	378.11M	325.48M
Stockholders Equity	2.32B	2.36B	2.27B	2.11B	737.25M
Cash Flow
Free Cash Flow	354.36M	286.02M	148.29M	189.18M	196.16M
Operating Cash Flow	354.36M	372.57M	273.41M	249.39M	248.75M
Investing Cash Flow	245.36M	-654.10M	-464.77M	-578.51M	-35.45M
Financing Cash Flow	-292.30M	-204.01M	-165.43M	1.19B	-39.61M

Chaoju Eye Care Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2219, the sentiment is Positive. The current price of 2.79 is above the 20-day moving average (MA) of 2.75, above the 50-day MA of 2.64, and above the 200-day MA of 2.77, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 61.49 is Neutral, neither overbought nor oversold. The STOCH value of 89.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2219.

Chaoju Eye Care Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2219	74 Outperform	HK$1.97B	9.09	8.35%	8.55%	0.61%	-15.89%
1526	68 Neutral	HK$1.73B	5.38	24.13%	4.13%	-3.85%	-19.28%
3689	66 Neutral	HK$601.91M	36.14	1.07%	8.89%	-1.20%	-87.51%
Sector *	66 Neutral	€1.72B	33.86	8.73%	1.75%	7.10%	103.68%
1846	61 Neutral	HK$895.36M	11.23	7.39%	4.99%	0.20%	-36.95%
3886	56 Neutral	HK$1.59B	―	-6.55%	0.51%	0.04%	-4.88%
3309	54 Neutral	HK$2.27B	33.92	-7.51%	1.10%	-0.56%	-323.09%

Chaoju Eye Care Holdings Ltd. Corporate Events

Chaoju Eye Care Expands with Strategic Acquisitions in Zhejiang and Ningxia

Chaoju Eye Care Holdings Ltd. announced the acquisition of equity interests in Ningbo Boshi Eye Hospital Co., Ltd. and Wuzhong Yunshikang Eye Hospital Co., Ltd. These strategic acquisitions aim to integrate medical resources, optimize hospital operations, and expand the company’s service network in Zhejiang and Ningxia. By consolidating these entities into its financial statements, Chaoju Eye Care seeks to strengthen its market position and mitigate risks, aligning with its strategic growth plans.

Chaoju Eye Care Enhances Governance with Nomination Committee Amendments

Chaoju Eye Care Holdings Ltd. has amended the terms of reference for its Nomination Committee to enhance corporate governance and protect shareholder interests. The committee, composed mainly of independent non-executive directors, is tasked with recommending candidates for directors and senior management, ensuring diversity and adherence to regulatory standards.

Chaoju Eye Care Updates Nomination Committee for Governance Compliance

Chaoju Eye Care Holdings Limited has announced a change in its Nomination Committee to comply with the revised Corporate Governance Code effective from July 1, 2025. Ms. GUO Hongyan, an independent non-executive Director, has been appointed to the committee, which now includes three independent non-executive Directors and one executive Director, ensuring gender diversity.

Chaoju Eye Care Holdings Ltd. Announces Board Composition and Committee Roles

Chaoju Eye Care Holdings Ltd. has announced the composition of its board of directors, detailing the roles and functions of each member. The board comprises executive, non-executive, and independent non-executive directors, with various members assigned to four key committees: Audit, Remuneration, Nomination, and Environmental, Social, and Governance. This announcement highlights the company’s structured governance approach, which could impact its strategic decision-making and stakeholder engagement.

Chaoju Eye Care Expands Financial Portfolio with New Structured Deposits

Chaoju Eye Care Holdings Ltd. has announced a new subscription of structured deposit products through its subsidiary, Chaoju Medical Technology, totaling RMB100 million with the Bank of China. This move is part of a series of transactions with the bank, aggregating previous subscriptions to exceed a 5% but less than 25% threshold, thereby classifying them as discloseable transactions under Hong Kong’s Listing Rules. The subscriptions are funded by surplus cash, indicating a strategic financial management approach without tapping into global offering proceeds.

Chaoju Eye Care Successfully Concludes AGM with Unanimous Support for Resolutions

Chaoju Eye Care Holdings Ltd. held its Annual General Meeting on June 6, 2025, where all proposed resolutions were passed with significant shareholder support. Key resolutions included the adoption of financial statements, declaration of a final dividend, re-election of directors, and re-appointment of auditors, reflecting strong governance and shareholder confidence.

Chaoju Eye Care Hospitals Achieve Top Ratings, Boosting Reputation and Resources

Chaoju Eye Care Holdings Ltd. announced that two of its hospitals, Inner Mongolia Chaoju Eye Hospital and Baotou Chaoju Eye Hospital, have been rated as Grade 3A specialized hospitals, reflecting their excellence in medical services, technology, and research capabilities. This achievement is expected to enhance the hospitals’ reputation, attract more resources, and contribute to local healthcare development. Additionally, Chifeng Chaoju Eye Hospital received a Grade 3B rating, indicating progress in the company’s service network. Chaoju Eye Care plans to leverage these ratings to further invest in medical technology and service quality, aiming to improve patient experience and expand the reach of quality ophthalmic healthcare.

Chaoju Eye Care Holdings Ltd. Announces AGM with Key Resolutions

Chaoju Eye Care Holdings Ltd. has announced its upcoming Annual General Meeting (AGM) scheduled for June 6, 2025, in Beijing, China. Key agenda items include the adoption of financial statements, declaration of a final dividend, re-election of directors, and re-appointment of auditors. The company also seeks approval to empower its directors to issue additional shares, which could potentially impact its market operations and shareholder value.