Yunkang Group Limited (2325) AI Stock Analysis

• Market Cap: HK$602.61M
• Dividend Yield: 2.15%
• Average Volume (3M): 1.61M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: -18.98%
• EPS Growth: -164.82%
• Country: HK
• Employees: 1,249
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -1.44
• Shares Outstanding: 621,250,500
• 10 Day Avg. Volume: 4,171,850
• 30 Day Avg. Volume: 1,613,200
• PEG Ratio: >-0.01
• Price to Book (P/B): 4.52
• Price to Sales (P/S): 7.26
• P/FCF Ratio: 22.64
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$1.00 ▲(1.01% Upside)

The overall stock score of 46 reflects significant financial challenges, including declining revenues and negative profitability. Technical analysis indicates bearish momentum, and valuation metrics are concerning with a negative P/E ratio. The company's modest dividend yield provides limited support.

Positive Factors

Market Position

A strong market presence in domestic and international markets provides a competitive edge, allowing the company to leverage global demand for its products.

Revenue Streams

Diverse revenue streams from multiple channels enhance resilience against market fluctuations and support long-term growth potential.

Cash Flow Stability

Positive free cash flow suggests operational efficiency, providing the company with the ability to reinvest in growth and manage financial obligations.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share and demand, potentially impacting long-term financial health and growth prospects.

Negative Profitability

Negative profitability reflects operational inefficiencies and financial strain, which could hinder the company's ability to invest in future growth.

Weakening Equity Base

A weakening equity base can limit financial flexibility and increase vulnerability to economic downturns, affecting long-term sustainability.

Yunkang Group Limited Business Overview & Revenue Model

Company Description

Yunkang Group Limited operates as a medical operation service provider in the People's Republic of China. The company offers diagnostic testing services for medical institution alliances, including setting up or upgrading diagnostic centers, the establishment of standard operating procedures for diagnostic testing, diagnostic consultation and staff training, procurement of equipment, smart internet of things, and logistics assistance. It also provides diagnostic outsourcing services comprising pathology tests; infectious disease diagnostic tests, including hepatitis B virus, tuberculosis, human papilloma virus, EB virus, rabies virus, and nucleic acid tests for respiratory pathogens; genetic reproduction and screening tests; and routine diagnostic tests for chronic kidney, blood, autoimmune, endocrine metabolism, and other diseases. In addition, the company offers diagnostic testing services for financial institutions and insurance companies, including personalized diagnostic testing, medical report consultation, and hospital referral services; information technology, medical logistics, and medical equipment procurement; healthcare technology development; and project investment. It provides its services through independent clinical laboratories and on-site diagnostic centers. Yunkang Group Limited was founded in 2008 and is headquartered in Guangzhou, the People's Republic of China.

How the Company Makes Money

Yunkang Group Limited generates revenue through multiple streams, primarily from the sale of its traditional Chinese medicine products and health supplements. The company capitalizes on the increasing consumer interest in natural and holistic health solutions. Key revenue streams include direct sales through retail outlets, online platforms, and partnerships with healthcare providers and distributors. Additionally, Yunkang Group may benefit from licensing agreements and collaborations with other firms in the healthcare sector, allowing them to expand their product range and market reach. The company's focus on innovation and quality in its product offerings also plays a significant role in driving sales and enhancing customer loyalty.

Yunkang Group Limited Financial Statement Overview

Summary

Yunkang Group Limited is facing financial headwinds with declining revenues and profitability. While the balance sheet shows manageable leverage, the weakening equity base is a concern. Cash flow remains relatively stable, but the company needs to address its profitability and operational efficiency to improve its financial health.

Income Statement

The company has experienced declining revenue with a significant drop from 2022 to 2023. Gross profit margins have decreased, and the net profit margin is negative, indicating losses. The EBIT and EBITDA margins are also negative, reflecting operational challenges and inefficiencies.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, indicating manageable leverage. However, the decline in stockholders' equity over recent years suggests weakening financial stability. The equity ratio shows a slight decrease, highlighting potential risks in asset management.

Cash Flow

The company shows positive free cash flow, indicating some operational efficiency despite declining revenue. However, the free cash flow growth rate is fluctuating, and the operating cash flow to net income ratio reflects the company's ongoing profitability challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	645.16M	711.88M	891.50M	3.76B	1.70B	1.20B
Gross Profit	189.24M	211.07M	325.79M	1.47B	1.07B	726.08M
EBITDA	-597.39M	-668.52M	25.07M	569.53M	496.15M	366.88M
Net Income	-720.89M	-791.68M	-102.26M	377.31M	380.93M	255.33M
Balance Sheet
Total Assets	3.06B	3.23B	4.53B	5.51B	3.00B	2.32B
Cash, Cash Equivalents and Short-Term Investments	1.69B	1.73B	1.87B	1.43B	800.70M	485.83M
Total Debt	1.02B	1.07B	1.39B	786.12M	362.02M	497.23M
Total Liabilities	1.96B	2.08B	2.41B	2.66B	1.23B	1.06B
Stockholders Equity	1.10B	1.14B	2.33B	2.84B	1.45B	1.24B
Cash Flow
Free Cash Flow	161.48M	228.38M	271.63M	-239.05M	141.06M	-86.66M
Operating Cash Flow	171.25M	258.84M	333.84M	130.33M	413.26M	221.08M
Investing Cash Flow	63.78M	354.02M	-153.94M	-1.25B	310.72M	-191.09M
Financing Cash Flow	-202.32M	-535.63M	276.48M	1.10B	-215.32M	260.99M

Yunkang Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2325, the sentiment is Negative. The current price of 0.99 is above the 20-day moving average (MA) of 0.99, below the 50-day MA of 1.01, and below the 200-day MA of 2.46, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 46.96 is Neutral, neither overbought nor oversold. The STOCH value of 28.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2325.

Yunkang Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
3309	47 Neutral	HK$2.01B	-17.19	-6.41%	1.20%	2.05%	-285.88%
2325	46 Neutral	HK$602.61M	-0.74	-47.91%	2.15%	-18.98%	-164.82%
2160	46 Neutral	HK$7.64B	545.45	0.22%	―	-4.38%	―
2251	40 Neutral	HK$1.23B	-6.67	-12.97%	―	-32.17%	-1.20%

Yunkang Group Limited Corporate Events

Yunkang Group Signs New Three-Year Connected Lease with Controlling Shareholder

Yunkang Group Limited has entered into a new three-year property lease agreement under which its subsidiary Guangzhou Daan will lease around 10,468 sq m of premises in Guangzhou’s Science City from controlling shareholder Da An Gene, along with related services such as water and electricity supply, from 1 January 2026 to 31 December 2028. The arrangement, treated as an acquisition of a right-of-use asset of about RMB9.5 million under IFRS 16 and as continuing connected transactions for service fees, falls within thresholds that require reporting and public announcement but are exempt from independent shareholders’ approval, ensuring continuity of facilities for the group while maintaining compliance with Hong Kong connected-transaction rules.

The most recent analyst rating on (HK:2325) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Yunkang Group Limited stock, see the HK:2325 Stock Forecast page.

Yunkang Group Announces Change in Board Lot Size

Yunkang Group Limited has announced a change in the board lot size for its shares traded on The Stock Exchange of Hong Kong Limited. Effective January 2, 2026, the board lot size will increase from 500 shares to 3,000 shares. This change is intended to reduce transaction and registration costs for shareholders and potential investors. The company assures that this adjustment will not affect shareholders’ rights and is in their best interest. Additionally, Yunkang Group is exploring future fundraising opportunities to support its development, though no immediate corporate actions are planned.

The most recent analyst rating on (HK:2325) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Yunkang Group Limited stock, see the HK:2325 Stock Forecast page.