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Yestar Healthcare Holdings Co Ltd (HK:2393)
:2393
Hong Kong Market

Yestar Healthcare Holdings Co Ltd (2393) AI Stock Analysis

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HK

Yestar Healthcare Holdings Co Ltd

(2393)

Rating:51Neutral
Price Target:
Yestar Healthcare Holdings has a low overall stock score, primarily due to significant financial challenges including declining revenues, high leverage, and inconsistent cash flow generation. While the technical analysis shows some potential for upward momentum, it is offset by negative MACD and neutral RSI signals. Despite an attractive valuation based on a low P/E ratio, the lack of dividend yield and potential financial instability present substantial risks. Improvements in financial performance are crucial for a more favorable stock outlook.

Yestar Healthcare Holdings Co Ltd (2393) vs. iShares MSCI Hong Kong ETF (EWH)

Yestar Healthcare Holdings Co Ltd Business Overview & Revenue Model

Company DescriptionYestar Healthcare Holdings Co Ltd (2393) is a prominent player in the healthcare sector, primarily focusing on the distribution and sale of medical equipment and consumables. The company is engaged in the provision of high-quality medical imaging products and services, including diagnostic imaging equipment and reagents, which cater to hospitals and other healthcare institutions across China.
How the Company Makes MoneyYestar Healthcare Holdings Co Ltd generates revenue through the sale of medical imaging equipment, diagnostic reagents, and consumables to healthcare facilities. The company has established a robust distribution network to supply these products to hospitals and clinics, ensuring efficient delivery and service. Key revenue streams include the sale of advanced diagnostic imaging systems and related consumables, which are essential for medical diagnostics. Additionally, Yestar leverages strategic partnerships with international medical equipment manufacturers to enhance its product offerings and expand market reach, contributing significantly to its earnings.

Yestar Healthcare Holdings Co Ltd Financial Statement Overview

Summary
Yestar Healthcare Holdings is facing financial challenges with declining revenues, deteriorating profitability, high leverage, and inconsistent cash flow generation. Despite a one-time net income gain in 2024, underlying operational issues persist. The company needs to stabilize its operations, improve profitability, and strengthen its balance sheet to ensure long-term financial health.
Income Statement
45
Neutral
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
35
Negative
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
30
Negative
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
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
2.41B2.91B4.29B4.93B4.11B
Gross Profit
399.20M512.78M708.71M848.70M806.88M
EBIT
-153.66M143.59M-77.51M184.37M158.14M
EBITDA
-51.93M376.81M19.13M315.89M-317.26M
Net Income Common Stockholders
921.61M-13.89M-992.23M3.33M-590.49M
Balance SheetCash, Cash Equivalents and Short-Term Investments
151.78M251.56M418.15M751.77M687.13M
Total Assets
1.43B3.43B3.37B4.56B4.66B
Total Debt
316.90M1.63B1.90B1.79B1.84B
Net Debt
223.13M1.43B1.60B1.21B1.27B
Total Liabilities
921.84M3.82B3.71B3.73B3.80B
Stockholders Equity
461.60M-457.50M-408.87M755.23M757.04M
Cash FlowFree Cash Flow
0.00294.22M-115.58M665.55M591.92M
Operating Cash Flow
0.00387.67M-91.73M715.22M670.73M
Investing Cash Flow
0.00-89.82M-18.72M-47.67M-37.21M
Financing Cash Flow
0.00-234.37M-180.86M-654.20M-604.74M

Yestar Healthcare Holdings Co Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.17
Price Trends
50DMA
0.09
Positive
100DMA
0.08
Positive
200DMA
0.07
Positive
Market Momentum
MACD
0.02
Negative
RSI
83.27
Negative
STOCH
81.18
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2393, the sentiment is Positive. The current price of 0.17 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.09, and above the 200-day MA of 0.07, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 83.27 is Negative, neither overbought nor oversold. The STOCH value of 81.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2393.

Yestar Healthcare Holdings Co Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$27.41B12.278.95%4.44%-3.09%0.67%
74
Outperform
HK$34.08B12.8014.56%3.79%-5.37%6.28%
66
Neutral
$98.90B52.126.14%1.09%7.63%-24.23%
56
Neutral
HK$59.66B251.270.42%0.56%-2.06%-83.44%
54
Neutral
$5.38B3.27-45.10%3.30%16.81%0.02%
51
Neutral
HK$393.71M0.401417.08%-20.01%
48
Neutral
HK$594.23M-10.78%-0.95%-128.35%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2393
Yestar Healthcare Holdings Co Ltd
0.17
0.12
240.00%
HK:3869
Hospital Corporation of China Ltd
4.30
-2.10
-32.81%
HK:1347
Hua Hong Semiconductor Ltd.
29.70
6.20
26.38%
HK:1177
Sino Biopharmaceutical
5.53
2.81
103.08%
HK:1066
Shandong Weigao Group Medical Polymer Co
6.06
1.81
42.52%
HK:1513
Livzon Pharmaceutical Group
31.70
7.12
28.98%

Yestar Healthcare Holdings Co Ltd Corporate Events

Yestar Healthcare Announces 2025 AGM and Key Resolutions
Apr 25, 2025

Yestar Healthcare Holdings Co Ltd has announced its Annual General Meeting scheduled for May 30, 2025, in Shanghai. The meeting will address several key agenda items, including the re-election of directors, the authorization of directors’ remuneration, and the re-appointment of auditors. Additionally, a resolution will be considered to allow the directors to issue additional shares, which could impact the company’s capital structure and shareholder value.

Yestar Healthcare Relocates Shanghai Office to Enhance Operations
Apr 15, 2025

Yestar Healthcare Holdings Co Ltd has announced a change in its principal place of business in Shanghai, effective from April 15, 2025. This relocation to a new address in Pudong New District signifies a strategic move that could enhance operational efficiency and potentially strengthen its market position in the region.

Yestar Healthcare Announces Leadership Changes
Apr 2, 2025

Yestar Healthcare Holdings Co Ltd has announced key leadership changes effective April 2, 2025. Mr. Wang Chunlai has been appointed as an executive director, bringing extensive experience within the company since 2000. Concurrently, Ms. Liao Changxiang has resigned as CEO and member of the investment committee, transitioning to a general manager role for the Guangxi operations. These changes are part of a succession plan aimed at strengthening the company’s management structure and operational focus.

Yestar Healthcare Announces Board and Committee Roles
Apr 2, 2025

Yestar Healthcare Holdings Co Ltd has announced the composition of its board of directors and the roles within its various committees. This organizational update, effective immediately, includes the appointment of members to the Audit, Nomination, Remuneration, and Investment Committees, which could influence the company’s governance and strategic decisions.

Yestar Healthcare Implements CEO Succession Plan to Enhance Growth
Mar 28, 2025

Yestar Healthcare Holdings Co Ltd has announced the implementation of a succession plan for the role of chief executive officer as part of its strategy to diversify and strengthen its management team. This plan includes a rotating CEO management system aimed at promoting sustainable development, enhancing organizational efficiency, and fostering innovation within the company. The board believes this initiative will improve corporate governance and support the company’s long-term success, benefiting both the group and its shareholders.

Yestar Healthcare Reports Significant Profit Increase in 2024
Mar 28, 2025

Yestar Healthcare Holdings Co Ltd announced its annual results for the year ended December 31, 2024, reporting a significant increase in profit from continuing operations, reaching RMB 902,977,000 compared to RMB 1,478,000 in the previous year. This improvement is attributed to a substantial gain on the extinguishment of senior notes and a reduction in finance costs, despite a decrease in revenue and an impairment loss on non-financial assets. The results indicate a positive shift in the company’s financial health, potentially strengthening its market position and offering reassurance to stakeholders.

Yestar Healthcare to Review Annual Results and Dividend Proposal
Mar 17, 2025

Yestar Healthcare Holdings Co Ltd has announced a board meeting scheduled for March 28, 2025, to discuss and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend, highlighting the company’s ongoing financial strategies and potential returns for stakeholders.

Yestar Healthcare Projects Significant Profit Turnaround for FY2024
Mar 14, 2025

Yestar Healthcare Holdings Co Ltd has announced a positive profit alert, expecting to report a consolidated net profit of at least RMB880 million for the fiscal year 2024, a significant turnaround from the previous year’s net loss of approximately RMB1.3 million. This improvement is attributed to gains from the redemption of senior notes, reduced finance costs, and a reversal of impairment loss on financial assets, although partially offset by increased impairment losses on other assets. The final audited results will be released on March 28, 2025.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.