Gaush Meditech Ltd. (2407) AI Stock Analysis

• Market Cap: HK$1.13B
• Dividend Yield: 3.48%
• Average Volume (3M): 147.22K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.93
• Revenue Growth: 6.63%
• EPS Growth: 12.96%
• Country: HK
• Employees: 884
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.29
• Shares Outstanding: 147,887,860
• 10 Day Avg. Volume: 84,250
• 30 Day Avg. Volume: 147,220
• PEG Ratio: -0.32
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 51.36
• 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: 74 Outperform
• Price Target: HK$8.50 ▲(11.26% Upside)

Gaush Meditech Ltd. receives a solid score driven by strong technical indicators and a fair valuation. The financial performance is moderate, with stable revenue growth but challenges in profit margins and cash flow. The absence of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Improved leverage

A lower debt-to-equity ratio (0.35) indicates materially improved leverage, boosting financial flexibility and lowering interest burden. Over 2–6 months this enhances capacity to fund working capital, invest in product development, and withstand reimbursement or demand shocks without overreliance on external debt.

Stable revenue growth and profitability

Consistent revenue growth and continued profitability suggest enduring product demand and a viable business model in medical devices. Even modest top-line expansion sustained earnings, which supports incremental reinvestment, customer retention efforts, and multi-quarter planning versus cyclical or one-off sales spikes.

Stable equity base

A stable equity ratio reflects a resilient capital structure and asset foundation. This persistent balance-sheet strength underpins credit access, funds long-term R&D or capacity expansion, and reduces insolvency risk, supporting strategic initiatives and partner or supplier confidence over multiple quarters.

Negative Factors

Declining profit margins

Widening margin pressure across gross, EBIT and net margins signals persistent cost or pricing challenges. If structural (supply costs, pricing competition, product mix) these compress long‑term earnings power, limiting free cash generation and the ability to fund R&D or margin-accretive investments without corrective action.

Deteriorating cash generation

A significant FCF decline and weak conversion of income into cash erode liquidity and constrain discretionary spending. Over several quarters this reduces capacity to invest, service debt, or sustain dividends, increasing reliance on external financing and raising execution risk for strategic growth initiatives.

Lower return on equity

A falling ROE indicates the company is generating less profit per unit of shareholder capital. Persistently lower ROE can signal inefficient capital allocation or slowing operational leverage, undermining long-term shareholder returns and making future equity funding or investor support more costly.

Gaush Meditech Ltd. Business Overview & Revenue Model

Company Description

Gaush Meditech Ltd., together with its subsidiaries, researches and develops, produces, and sells ophthalmic medical devices in the People's Republic of China and internationally. The company operates through Proprietary Products, Distribution, Technical, and Others segments. Its ophthalmic medical devices are used for diagnosis, treatment, or surgeries, including vitreoretinal diseases, cataract, glaucoma, refractive surgery, ocular surface diseases, optometry, and pediatric ophthalmology. The Proprietary Products segment develops and produces surgical equipment and related supporting software, intra optical lens, and ophthalmic disease diagnosis and treatment equipment and related supporting consumables. The Distribution segment sells diagnostic equipment, ocular fundus diagnosis, surgical and treatment equipment, and related supporting consumables. The Technical segment provides warranty services, maintenance services, and after-sales services related consumables. The Others segment engages in the provision of equipment leasing and agent registration services; and licensing intellectual properties. The company sells its products directly and through distributors to public and private hospitals, and other customers. Gaush Meditech Ltd. was founded in 1998 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Gaush Meditech generates revenue primarily through the sale of its medical devices and equipment to hospitals, clinics, and healthcare providers. The company employs a direct sales model complemented by partnerships with distributors to expand its market reach. Key revenue streams include product sales, maintenance services, and training programs for healthcare professionals. Additionally, Gaush Meditech may engage in strategic collaborations with other healthcare firms for research and development, which can lead to licensing agreements and joint ventures that further enhance its financial performance.

Gaush Meditech Ltd. Financial Statement Overview

Summary

Gaush Meditech Ltd. demonstrates moderate financial health with stable revenue growth and improved leverage. However, declining profit margins and cash flow challenges indicate areas for improvement. The company should focus on enhancing operational efficiency and cash generation to strengthen its financial position.

Income Statement

Gaush Meditech Ltd. shows moderate revenue growth with a 2.91% increase in 2024, but gross and net profit margins have declined compared to the previous year. The EBIT and EBITDA margins also decreased, indicating potential challenges in maintaining operational efficiency. Despite these issues, the company has managed to stay profitable, which is a positive sign.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.35 in 2024, reflecting better leverage management. The return on equity has decreased, suggesting reduced profitability from shareholders' equity. However, the equity ratio remains stable, indicating a solid asset base.

Cash Flow

Free cash flow has decreased significantly by 25.59% in 2024, raising concerns about cash generation. The operating cash flow to net income ratio is low, indicating potential issues in converting income into cash. However, the company maintains a positive free cash flow to net income ratio, suggesting some level of cash profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.44B	1.43B	1.41B	1.25B	1.30B	962.08M
Gross Profit	680.70M	663.39M	691.60M	625.34M	609.47M	436.18M
EBITDA	253.71M	247.31M	374.31M	271.91M	287.20M	185.27M
Net Income	101.89M	92.39M	173.52M	-349.62M	-190.45M	99.37M
Balance Sheet
Total Assets	2.57B	2.57B	2.84B	2.72B	2.43B	2.24B
Cash, Cash Equivalents and Short-Term Investments	383.68M	518.99M	833.04M	814.16M	609.00M	307.50M
Total Debt	469.06M	552.24M	664.36M	756.00M	2.62B	1.74B
Total Liabilities	897.99M	978.12M	1.15B	1.23B	3.06B	2.19B
Stockholders Equity	1.66B	1.58B	1.68B	1.47B	-656.43M	25.63M
Cash Flow
Free Cash Flow	125.16M	26.57M	203.44M	186.41M	136.44M	128.19M
Operating Cash Flow	142.55M	107.78M	249.04M	234.42M	164.49M	130.00M
Investing Cash Flow	36.66M	18.55M	-167.65M	-136.04M	79.83M	-998.02M
Financing Cash Flow	-410.22M	-303.09M	-189.94M	3.08M	72.84M	856.36M

Gaush Meditech Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2407, the sentiment is Negative. The current price of 7.64 is below the 20-day moving average (MA) of 8.37, below the 50-day MA of 8.74, and above the 200-day MA of 7.47, indicating a neutral trend. The MACD of -0.33 indicates Positive momentum. The RSI at 35.37 is Neutral, neither overbought nor oversold. The STOCH value of 28.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2407.

Gaush Meditech Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1763	74 Outperform	HK$7.52B	16.42	8.59%	2.76%	13.59%	6.31%
2407	74 Outperform	HK$1.13B	10.19	6.33%	3.48%	6.63%	12.96%
1846	69 Neutral	HK$927.34M	12.28	6.35%	1.99%	-1.61%	-27.39%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
6622	47 Neutral	HK$1.85B	-6.12	-14.84%	―	-38.38%	-22.12%
2126	41 Neutral	HK$1.12B	-1.64	-51.56%	―	2.45%	2.58%
2216	40 Neutral	HK$1.27B	-9.86	-8.93%	―	-30.60%	28.61%

Gaush Meditech Ltd. Corporate Events

Gaush Meditech Achieves ISO Certification for Medical Devices

Gaush Meditech Ltd announced that its subsidiary, Gaush Tech Ltd, has received the ISO 13485:2016/EN ISO 13485:2016 Quality Management System Certification for Medical Devices from DEKRA. This certification signifies a robust quality management system, enhancing the company’s compliance with global regulatory standards and supporting its international market expansion.

The most recent analyst rating on (HK:2407) stock is a Buy with a HK$10.50 price target. To see the full list of analyst forecasts on Gaush Meditech Ltd. stock, see the HK:2407 Stock Forecast page.

Gaush Meditech’s Ophthalmic Diagnostic System Gains Approval in China

Gaush Meditech Ltd announced that its subsidiary, Gaush Tech, has received a medical device registration certificate in China for its ophthalmic electrophysiological diagnostic system. This system integrates Visual Evoked Potential, Electroretinography, and Electrooculography to provide comprehensive assessments of the visual system. It is non-invasive and aids in the diagnosis and monitoring of various eye diseases, offering significant benefits for both patients and healthcare providers by enabling precise and early-stage diagnosis.

The most recent analyst rating on (HK:2407) stock is a Buy with a HK$10.50 price target. To see the full list of analyst forecasts on Gaush Meditech Ltd. stock, see the HK:2407 Stock Forecast page.