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

• Market Cap: HK$1.97B
• Dividend Yield: 8.99%
• Average Volume (3M): 722.53K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.79
• Revenue Growth: -3.19%
• EPS Growth: -20.30%
• Country: HK
• Employees: 2,608
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.18
• Shares Outstanding: 707,510,500
• 10 Day Avg. Volume: 521,468
• 30 Day Avg. Volume: 722,533
• PEG Ratio: -0.63
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 1.33
• P/FCF Ratio: 5.26
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: HK$3.00 ▲(9.89% Upside)

Chaoju Eye Care Holdings Ltd. has a solid financial foundation and attractive valuation, which are significant strengths. However, the technical analysis indicates bearish momentum, which is a concern. The absence of earnings call insights and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for services and effective market positioning, supporting long-term business expansion.

Cash Flow Management

Strong cash flow management enhances liquidity and provides financial flexibility for strategic investments and operational stability.

Balance Sheet Health

A low debt-to-equity ratio indicates financial stability and reduces risk, allowing for sustainable growth and resilience against economic fluctuations.

Negative Factors

Net Profit Margin Decline

A declining net profit margin may signal cost pressures or inefficiencies, potentially impacting profitability and requiring strategic cost management.

Decreased Return on Equity

A decrease in return on equity suggests reduced profitability relative to shareholder equity, which may affect investor confidence and capital efficiency.

Earnings Volatility

Significant earnings volatility can create uncertainty in financial performance, potentially affecting strategic planning and investor perception.

Chaoju Eye Care Holdings Ltd. Business Overview & Revenue Model

Company Description

Chaoju Eye Care Holdings Ltd. is a prominent player in the ophthalmic healthcare sector, primarily based in China. The company specializes in the research, development, manufacturing, and distribution of a wide range of eye care products, including intraocular lenses, surgical equipment, and diagnostic instruments. With a commitment to innovation, Chaoju Eye Care also offers specialized services in ophthalmic surgery and patient care, positioning itself as a comprehensive provider in the eye care industry.

How the Company Makes Money

Chaoju Eye Care Holdings Ltd. generates revenue through multiple streams, primarily from the sale of its core products such as intraocular lenses and surgical instruments used in eye care procedures. The company benefits from a growing demand for ophthalmic surgeries due to an increasing prevalence of eye-related disorders among the aging population. Additionally, it engages in partnerships with hospitals and healthcare providers, enhancing its distribution network and access to a broader customer base. The company may also explore opportunities in research collaborations and government contracts, contributing to its overall earnings.

Chaoju Eye Care Holdings Ltd. Financial Statement Overview

Summary

Chaoju Eye Care Holdings Ltd. is in a solid financial position with consistent revenue growth, strong profitability margins, a healthy balance sheet, and robust cash flow management. The company maintains low leverage and a strong equity base, which provides financial stability and potential for future growth. While net profit margins decreased slightly, the company continues to generate strong cash flows, indicating sustainable operations.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.37B	1.41B	1.37B	990.04M	997.79M	794.28M
Gross Profit	573.00M	611.30M	621.13M	434.70M	448.67M	349.48M
EBITDA	316.81M	335.37M	434.82M	267.87M	304.65M	225.18M
Net Income	172.27M	195.08M	228.91M	187.75M	161.75M	124.14M
Balance Sheet
Total Assets	3.00B	2.88B	2.92B	2.72B	2.51B	1.09B
Cash, Cash Equivalents and Short-Term Investments	1.47B	1.54B	1.55B	1.68B	1.78B	413.25M
Total Debt	253.76M	218.01M	200.80M	196.16M	178.65M	142.36M
Total Liabilities	638.53M	554.76M	544.38M	424.68M	378.11M	325.48M
Stockholders Equity	2.35B	2.32B	2.36B	2.27B	2.11B	737.25M
Cash Flow
Free Cash Flow	279.75M	354.36M	286.02M	148.29M	189.18M	196.16M
Operating Cash Flow	361.45M	354.36M	372.57M	273.41M	249.39M	248.75M
Investing Cash Flow	-315.07M	245.36M	-654.10M	-464.77M	-578.51M	-35.45M
Financing Cash Flow	-160.85M	-292.30M	-204.01M	-165.43M	1.19B	-39.61M

Chaoju Eye Care Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.73
• 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 2.73 is above the 20-day moving average (MA) of 2.65, above the 50-day MA of 2.59, and below the 200-day MA of 2.73, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 66.43 is Neutral, neither overbought nor oversold. The STOCH value of 83.08 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
3689	71 Outperform	HK$652.07M	7.90	5.33%	8.21%	0.47%	50.46%
1846	69 Neutral	HK$1.02B	13.46	6.35%	1.92%	-1.61%	-27.39%
2219	68 Neutral	HK$1.97B	10.35	7.31%	8.99%	-3.19%	-20.30%
1526	66 Neutral	HK$1.46B	5.04	20.47%	4.89%	-3.56%	-17.45%
3886	52 Neutral	HK$1.69B	-11.79	-4.66%	0.48%	-0.55%	45.36%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
3309	47 Neutral	HK$2.05B	-17.51	-6.41%	1.20%	2.05%	-285.88%

Chaoju Eye Care Holdings Ltd. Corporate Events

Chaoju Eye Care Announces HK$50 Million Share Repurchase Plan

Chaoju Eye Care Holdings Ltd. has announced its intention to conduct an on-market share repurchase of up to HK$50 million, demonstrating confidence in its business outlook and aiming to create value for its shareholders. This move, subject to market conditions and regulatory compliance, reflects the company’s strategic decision to utilize its financial resources effectively while maintaining a solid financial position.

Chaoju Eye Care Expands Investment in BOC Wealth Management Products

Chaoju Eye Care Holdings Ltd. has announced that its subsidiary, Chaoju Medical Technology, has subscribed to wealth management products offered by BOC, totaling RMB240 million. This transaction, funded by surplus cash, is part of a series of similar subscriptions and is classified as a discloseable transaction under the Hong Kong Stock Exchange’s Listing Rules. The subscription is expected to impact the company’s financial strategy by utilizing surplus cash for investment purposes, potentially influencing its financial positioning and offering insights into its cash management practices.