Yestar Healthcare Holdings Co Ltd (2393) AI Stock Analysis

• Market Cap: HK$232.96M
• Dividend Yield: N/A
• Average Volume (3M): 2.34M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: 6.10%
• EPS Growth: -115.12%
• Country: HK
• Employees: 627
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): <0.01
• Shares Outstanding: 2,331,590,000
• 10 Day Avg. Volume: 1,184,000
• 30 Day Avg. Volume: 2,342,546
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.06
• P/FCF Ratio: -5.14
• 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: 40 Underperform
• Price Target: HK$0.11 ▲(8.00% Upside)

The score is driven primarily by weak financial performance (declining profitability, leverage/negative equity history, and poor cash generation). Technical indicators are mixed but lean weak with negative MACD and the price not reclaiming key longer-term averages. Valuation provides limited support due to a negative P/E and no stated dividend yield.

Positive Factors

Recurring equipment sales and service contracts

A mix of equipment sales and recurring service/maintenance contracts creates a durable revenue base. Service contracts provide predictable annuity-like cash flows, smoothing cyclicality of capital sales and supporting long-term customer relationships and aftermarket margins over multiple quarters.

Expansion into digital healthcare and telemedicine

Moving into telemedicine and health IT is a structural positive: digital services scale with lower incremental cost, diversify revenue away from hardware, and align with long-term healthcare digitization trends. This can improve margins and recurring revenue over 2-6 months and beyond.

Positive shift in equity during 2024

An improvement in equity during 2024 reduces immediate solvency pressure and can lower apparent leverage, improving access to funding and strategic flexibility. Sustained equity recovery would materially reduce refinancing risk and support operational investments.

Negative Factors

Historical negative equity and weak balance sheet

Persistent negative equity historically signals cumulative losses and high financial risk. A structurally weak balance sheet limits the company's ability to invest, raises refinancing and covenant risks, and constrains strategic options if profits and cash flow do not sustainably recover.

Inconsistent operating cash flow and negative FCF

Inconsistent OCF and negative free cash flow erode financial flexibility and raise dependence on external financing to fund capex, R&D, and working capital. Structurally weak cash generation increases vulnerability to earnings shocks and limits reinvestment capacity.

Deteriorating gross and EBITDA margins with revenue volatility

Falling gross and EBITDA margins indicate rising cost pressure, pricing weakness, or adverse product mix. Coupled with volatile revenue, this undermines sustainable profitability and operating leverage, making long-term planning and margin recovery more challenging without structural changes.

Yestar Healthcare Holdings Co Ltd Business Overview & Revenue Model

Company Description

Yestar Healthcare Holdings Company Limited, an investment holding company, engages in the manufacture, distribution, and sale of medical imaging products in Mainland China. It operates through two segments, Imaging Printing Products, and Medical Products and Equipment. The Imaging Printing Products segment manufactures and sells Fujifilm color photographic paper, industrial NDT X-ray films, and PWB films; and trades in imaging equipment. Its products are used in professional and minilabs; and industrial imaging applications. This segment provides NDT X-ray films under the Yes!Star brand. The Medical Products and Equipment segment manufactures and sells medical dry and wet films, and dental films; and sells medical equipment and diagnostic reagents. The company also distributes in vitro diagnostic products. In addition, it engages in the biotechnology development activities; management of supply chain activities; and provision of freight transportation services. The company was formerly known as Yestar International Holdings Company Limited and changed its name to Yestar Healthcare Holdings Company Limited in January 2017. Yestar Healthcare Holdings Company Limited was founded in 1971 and is headquartered in Shanghai, the People's Republic of China.

How the Company Makes Money

Yestar Healthcare Holdings generates revenue through multiple key streams. Primarily, the company earns income from the sale of its medical imaging equipment and diagnostic devices to hospitals and healthcare facilities. Additionally, Yestar provides diagnostic imaging services, such as MRI, CT scans, and ultrasound services, which contribute significantly to its revenue. The company also capitalizes on partnerships with hospitals and healthcare providers by offering integrated healthcare solutions and management services, allowing for a recurring revenue model through service contracts and maintenance agreements. Furthermore, Yestar is expanding its digital healthcare initiatives, which include telemedicine services and health information technology, potentially creating new avenues for revenue generation as the demand for remote healthcare services continues to grow.

Yestar Healthcare Holdings Co Ltd Financial Statement Overview

Summary

Financial statements indicate material weakness: declining and volatile revenue, deteriorating gross/EBITDA margins, negative equity in recent years (implying high financial risk), and inconsistent operating cash flow with negative free cash flow.

Income Statement

Yestar Healthcare Holdings has experienced significant revenue volatility with a declining trend from 2019 to 2024. The gross profit margin has deteriorated from 25.8% in 2019 to 16.6% in 2024, indicating reduced profitability. The net profit margin has shown improvement, turning positive in 2024, but is largely due to a significant one-time gain rather than operational performance. EBIT and EBITDA margins have also decreased, reflecting operational challenges.

Balance Sheet

The company has a weak balance sheet characterized by negative stockholders' equity in recent years, indicating potential financial distress. The Debt-to-Equity ratio is not meaningful given the negative equity, suggesting high leverage. Despite a positive shift in equity in 2024, the overall financial stability remains questionable with a low equity ratio.

Cash Flow

Cash flow performance has been inconsistent, with operating cash flow declining from 2020 to 2024 and free cash flow turning negative. The operating cash flow to net income ratio is not meaningful for 2024 due to zero operating cash flow. The company has struggled to generate sustainable free cash flow, impacting its financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.94B	2.41B	2.91B	2.80B	4.93B	4.11B
Gross Profit	315.30M	399.20M	512.78M	397.55M	848.70M	806.88M
EBITDA	-78.16M	-51.93M	376.81M	19.13M	315.89M	305.49M
Net Income	-161.86M	921.61M	-13.89M	-992.23M	3.33M	-590.49M
Balance Sheet
Total Assets	1.36B	1.43B	3.43B	3.37B	4.56B	4.66B
Cash, Cash Equivalents and Short-Term Investments	249.36M	151.78M	251.56M	418.15M	751.77M	625.20M
Total Debt	281.42M	316.90M	1.63B	1.90B	1.79B	1.84B
Total Liabilities	839.91M	921.84M	3.82B	3.71B	3.73B	3.80B
Stockholders Equity	469.65M	461.60M	-457.50M	-408.87M	755.23M	757.04M
Cash Flow
Free Cash Flow	239.65M	-26.45M	294.22M	-115.58M	665.55M	591.92M
Operating Cash Flow	272.74M	12.72M	387.67M	-91.73M	715.22M	670.73M
Investing Cash Flow	-31.65M	380.42M	-89.82M	-18.72M	-47.67M	-37.21M
Financing Cash Flow	-124.65M	-502.63M	-234.37M	-180.86M	-654.20M	-604.74M

Yestar Healthcare Holdings Co Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2393, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.11, and below the 200-day MA of 0.12, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.89 is Neutral, neither overbought nor oversold. The STOCH value of 6.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2393.

Yestar Healthcare Holdings Co Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1763	74 Outperform	HK$7.01B	15.19	8.59%	2.76%	13.59%	6.31%
1612	71 Outperform	HK$652.46M	7.50	14.73%	4.94%	17.93%	36.82%
1696	64 Neutral	HK$1.95B	12.58	4.46%	2.82%	-3.32%	-12.94%
6118	52 Neutral	HK$420.32M	11.08	4.40%	―	-2.77%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
2170	44 Neutral	HK$527.91M	-2.05	-20.60%	―	11.43%	4.88%
2393	40 Underperform	HK$232.96M	-1.33	-29.79%	―	6.10%	-115.12%

Yestar Healthcare Holdings Co Ltd Corporate Events

Yestar Healthcare Ventures into Advanced Materials Industry

Yestar Healthcare Holdings Co Ltd has announced its strategic move to invest in the advanced materials industry, recognizing the sector’s robust global growth. The company aims to become a pioneer in Southeast Asia by acquiring coating technology and related patents, which are crucial for transforming base materials into high-performance products. This initiative aligns with Yestar’s goal to diversify its business and enhance its market positioning, initially targeting applications in the oil & gas, hydrogen, and new energy industries.

The most recent analyst rating on (HK:2393) stock is a Sell with a HK$0.12 price target. To see the full list of analyst forecasts on Yestar Healthcare Holdings Co Ltd stock, see the HK:2393 Stock Forecast page.