Beijing Health (Holdings) Limited (2389) AI Stock Analysis

• Market Cap: HK$460.47M
• Dividend Yield: N/A
• Average Volume (3M): 1.21M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• Revenue Growth: 12.99%
• EPS Growth: 13.02%
• Country: HK
• Employees: 179
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): >-0.01
• Shares Outstanding: 6,058,772,000
• 10 Day Avg. Volume: 988,800
• 30 Day Avg. Volume: 1,211,200
• PEG Ratio: -0.05
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 3.11
• P/FCF Ratio: -11.05
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: HK$0.07 ▲(1.43% Upside)

The overall stock score is primarily influenced by the company's financial challenges, including declining revenues and persistent losses. Technical analysis indicates bearish momentum, and valuation metrics are unattractive due to negative earnings and lack of dividends.

Positive Factors

Low Leverage

Low leverage provides financial flexibility and reduces risk, allowing the company to potentially invest in growth opportunities without the burden of high-interest obligations.

Partnerships

Strategic partnerships can drive revenue growth and market expansion, leveraging external expertise and networks to enhance product development and distribution.

Revenue Growth

Positive revenue growth indicates increasing demand for the company's products and services, which can lead to improved market positioning and financial performance over time.

Negative Factors

Negative Cash Flow

Negative cash flow can strain the company's ability to fund operations and investments, potentially leading to liquidity issues and limiting growth prospects.

Declining Revenue

Declining revenue suggests challenges in maintaining market share or product competitiveness, which can impact long-term profitability and strategic positioning.

Persistent Losses

Persistent losses undermine financial stability and can erode shareholder value, requiring strategic changes to improve operational efficiency and profitability.

Beijing Health (Holdings) Limited Business Overview & Revenue Model

Company Description

Beijing Health (Holdings) Limited (2389) is a healthcare and pharmaceutical company based in Hong Kong, primarily engaged in the research, development, manufacturing, and sale of pharmaceutical products. The company operates in various sectors of the health industry, focusing on areas such as traditional Chinese medicine, over-the-counter drugs, and healthcare services. Its core products include a range of medicinal preparations and health supplements aimed at improving overall well-being and treating specific health conditions.

How the Company Makes Money

Beijing Health (Holdings) Limited generates revenue through several key streams, including the sale of pharmaceutical products, which encompass traditional Chinese medicine and contemporary pharmaceuticals. The company leverages its research and development capabilities to innovate and expand its product offerings, thereby attracting a diverse customer base. Additionally, it forms strategic partnerships with healthcare providers and distributors, enhancing its market reach and operational efficiencies. The company's revenue is also bolstered by its involvement in healthcare services, which may include wellness programs and consultations, further diversifying its income sources.

Beijing Health (Holdings) Limited Financial Statement Overview

Summary

The company faces significant financial challenges, with declining revenues and persistent losses impacting profitability. Despite a strong equity position and low leverage, the company struggles with negative cash flows and operational inefficiencies.

Income Statement

The company has faced declining revenue over the past few years, with a notable decrease from 203.8M in 2021 to 149.9M in 2024. Gross profit margin has been inconsistent, with a recent drop to 23.8% in 2024. Net profit margin remains negative, indicating ongoing losses, with a net income of -116.2M in 2024. EBIT and EBITDA margins are also negative, reflecting operational challenges.

Balance Sheet

The balance sheet shows a strong equity base with a debt-to-equity ratio of 0.003 in 2024, indicating low leverage. However, the equity ratio has slightly decreased to 88.0% in 2024 from 86.6% in 2023. Return on equity remains negative due to persistent losses. The company maintains a healthy cash position, with cash and equivalents of 211.1M in 2024.

Cash Flow

Operating cash flow remains negative, at -35.6M in 2024, indicating cash flow challenges. Free cash flow has also been negative, with a slight improvement from -45.1M in 2023 to -42.2M in 2024. The free cash flow to net income ratio is negative, reflecting difficulties in generating cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	153.22M	149.94M	140.35M	166.48M	203.78M	149.89M
Gross Profit	39.69M	35.68M	38.47M	46.51M	46.99M	32.79M
EBITDA	-56.17M	-97.47M	-44.19M	-75.25M	-10.37M	-122.87M
Net Income	-89.04M	-116.22M	-61.88M	-97.70M	-39.41M	-185.32M
Balance Sheet
Total Assets	1.92B	1.95B	2.18B	2.42B	2.84B	2.81B
Cash, Cash Equivalents and Short-Term Investments	258.81M	211.08M	335.96M	440.76M	496.30M	504.63M
Total Debt	6.23M	5.65M	4.89M	32.75M	48.37M	41.64M
Total Liabilities	199.43M	209.74M	223.82M	271.77M	341.34M	317.57M
Stockholders Equity	1.69B	1.72B	1.89B	2.04B	2.29B	2.28B
Cash Flow
Free Cash Flow	10.30M	-42.20M	-45.10M	-12.34M	406.00K	17.02M
Operating Cash Flow	19.10M	-35.56M	-43.72M	-11.19M	1.99M	26.73M
Investing Cash Flow	-9.42M	-33.80M	74.76M	22.77M	-227.83M	122.22M
Financing Cash Flow	-4.64M	-5.28M	-68.40M	-17.71M	-20.46M	-83.56M

Beijing Health (Holdings) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.07
• 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:2389, the sentiment is Negative. The current price of 0.07 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.08, and below the 200-day MA of 0.08, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.57 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2389.

Beijing Health (Holdings) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0722	78 Outperform	HK$396.47M	12.44	4.28%	7.01%	-2.88%	-22.83%
3689	71 Outperform	HK$601.91M	7.29	5.33%	7.73%	0.47%	50.46%
2189	65 Neutral	HK$430.00M	19.63	5.24%	4.71%	20.85%	-66.81%
3869	56 Neutral	HK$827.78M	5.69	30.40%	―	2.30%	―
1518	54 Neutral	HK$327.03M	―	-8.40%	3.30%	-21.31%	-149.92%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
2389	43 Neutral	HK$460.47M	-5.17	-5.09%	―	12.99%	13.02%

Beijing Health (Holdings) Limited Corporate Events

Beijing Health Gains Control Over Target Company Through Strategic Agreement

Beijing Health (Holdings) Limited has announced a significant development involving its financial and operational structure. The company has entered into an Acting in Concert Agreement with Jinfu, effectively gaining control over the Target Company by holding a majority of its voting power. This strategic move will result in the Target Company becoming a subsidiary of Beijing Health, with its financial results consolidated into the company’s financial statements, marking a deemed acquisition.

Beijing Health Announces Executive Director Resignation Following Regulatory Censure

Beijing Health (Holdings) Limited announced the resignation of executive director Mr. Siu Kin Wai following regulatory actions by the Hong Kong Stock Exchange. Mr. Siu was publicly censured due to breaches of listing rules during his tenure at Orient Securities International Holdings Limited. The company clarified that this matter is unrelated to its operations and will not impact its management.