Venus Medtech (Hangzhou), Inc. Class H (2500) AI Stock Analysis

• Market Cap: HK$1.01B
• Dividend Yield: N/A
• Average Volume (3M): 2.48M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: -8.56%
• EPS Growth: -14.84%
• Country: HK
• Employees: 691
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.34
• Shares Outstanding: 441,010,220
• 10 Day Avg. Volume: 2,133,843
• 30 Day Avg. Volume: 2,483,027
• PEG Ratio: -1.12
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 2.11
• P/FCF Ratio: -55.86
• 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: 41 Neutral
• Price Target: HK$2.50 ▲(6.38% Upside)

The overall stock score is primarily influenced by the company's challenging financial performance and negative valuation metrics. The technical analysis further underscores bearish momentum, with the stock trading below key moving averages and technical indicators suggesting oversold conditions. The absence of earnings call data and notable corporate events means these factors did not influence the score.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin suggests that Venus Medtech manages its production costs well, which can support profitability once revenue growth stabilizes.

Manageable Debt Load

A manageable debt load provides Venus Medtech with financial flexibility, reducing the risk of financial distress and supporting long-term operations.

Positive Shift in Operating Cash Flow

Improvement in operating cash flow indicates better cash management, which is crucial for sustaining operations and funding growth initiatives.

Negative Factors

Persistent Losses

Ongoing net losses highlight operational challenges and the need for strategic changes to achieve profitability and ensure long-term viability.

Negative Free Cash Flow

Negative free cash flow indicates that Venus Medtech may struggle to fund operations and growth without external financing, posing a risk to sustainability.

Declining Revenue Growth

Declining revenue growth suggests potential issues in market expansion or product demand, which could impact long-term competitiveness and profitability.

Venus Medtech (Hangzhou), Inc. Class H Business Overview & Revenue Model

Company Description

Venus Medtech (Hangzhou), Inc. is a medical technology company based in China, specializing in the development and manufacturing of innovative cardiovascular devices. The company primarily focuses on transcatheter heart valve therapies, which are minimally invasive solutions for patients with heart valve diseases. Its core products include the Venus A-Valve and other advanced cardiovascular technologies designed to improve patient outcomes and reduce recovery times.

How the Company Makes Money

Venus Medtech generates revenue through the sale of its medical devices, particularly its transcatheter heart valves, to hospitals and healthcare providers. The company operates on a business-to-business model, where it partners with medical institutions to distribute its products. Key revenue streams include direct product sales, service agreements, and potentially licensing fees for its proprietary technologies. Additionally, strategic partnerships with medical device distributors and collaborations with healthcare professionals for clinical trials and product validation contribute to its earnings by expanding market reach and enhancing product credibility.

Venus Medtech (Hangzhou), Inc. Class H Financial Statement Overview

Summary

Venus Medtech is facing substantial financial headwinds, characterized by persistent losses and cash flow difficulties. While there are strengths such as a strong gross profit margin and a manageable debt load, the company's inability to achieve profitability and positive cash flow is a significant concern. Continued focus on cost management and revenue growth is essential to improve financial health and ensure long-term sustainability.

Income Statement

The company exhibits a challenging financial situation with consistent net losses over the years. The gross profit margin is relatively strong, indicating effective cost management, but the company is struggling with negative EBIT and EBITDA margins, reflecting significant operational challenges. Revenue growth has been inconsistent, with a decline in the most recent year, highlighting potential issues in market expansion or product demand.

Balance Sheet

The balance sheet shows a strong equity position with a manageable level of debt, as reflected by a favorable debt-to-equity ratio. However, the declining equity ratio over the years and consistent net losses pose risks to financial stability. The company has maintained a solid cash position, but the reduction in cash and equivalents suggests potential liquidity concerns if losses persist.

Cash Flow

Cash flow analysis reveals significant challenges with negative free cash flow over multiple periods, although there is a positive shift in operating cash flow in the latest year. The operating cash flow to net income ratio indicates some improvement, but the company's cash flow generation remains weak overall, raising concerns about its ability to sustain operations without additional financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	427.25M	470.83M	491.37M	406.46M	415.86M	276.05M
Gross Profit	323.97M	367.75M	389.20M	314.00M	324.34M	227.28M
EBITDA	-572.39M	-612.96M	-547.84M	-999.37M	-324.03M	-152.83M
Net Income	-642.59M	-714.31M	-703.75M	-1.06B	-373.64M	-182.87M
Balance Sheet
Total Assets	3.12B	3.25B	4.41B	5.28B	5.11B	4.32B
Cash, Cash Equivalents and Short-Term Investments	293.31M	305.70M	781.64M	1.88B	2.96B	2.75B
Total Debt	493.59M	369.09M	826.19M	899.64M	70.78M	32.76M
Total Liabilities	1.05B	1.04B	1.49B	1.65B	477.61M	461.19M
Stockholders Equity	2.07B	2.21B	2.92B	3.61B	4.55B	3.82B
Cash Flow
Free Cash Flow	-56.51M	-17.82M	-872.93M	-908.23M	-602.08M	-361.05M
Operating Cash Flow	-58.51M	23.74M	-610.02M	-729.46M	-456.92M	-237.00M
Investing Cash Flow	17.23M	-19.90M	-346.86M	-1.07B	-653.04M	-297.94M
Financing Cash Flow	-149.37M	-487.34M	-173.99M	635.14M	1.39B	927.75M

Venus Medtech (Hangzhou), Inc. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.35
• 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:2500, the sentiment is Negative. The current price of 2.35 is below the 20-day moving average (MA) of 2.36, below the 50-day MA of 2.57, and below the 200-day MA of 3.02, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 41.31 is Neutral, neither overbought nor oversold. The STOCH value of 35.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2500.

Venus Medtech (Hangzhou), Inc. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2190	58 Neutral	HK$7.67B	43.46	4.99%	0.49%	35.01%	483.73%
6609	55 Neutral	HK$1.93B	41.97	3.84%	―	32.93%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
2160	43 Neutral	HK$2.68B	513.64	0.22%	―	-4.38%	―
2500	41 Neutral	HK$1.01B	-1.46	-26.80%	―	-8.56%	-14.84%
2216	40 Neutral	HK$1.27B	-9.33	-8.93%	―	-30.60%	28.61%
9996	39 Underperform	HK$3.90B	-15.66	-11.20%	―	29.25%	9.02%

Venus Medtech (Hangzhou), Inc. Class H Corporate Events

Venus Medtech Approves Key Resolution at Extraordinary General Meeting

Venus Medtech (Hangzhou) Inc. announced that the resolution proposed at their extraordinary general meeting was successfully passed. The resolution involved the approval of terms and transactions under a Disposal Agreement, which was unanimously supported by shareholders who attended the meeting. This development signifies a strategic move for the company, potentially impacting its operational focus and market positioning.

Venus Medtech Reports Promising Interim Results for Cardiovalve Study

Venus Medtech has announced interim clinical results from its Cardiovalve Target Study, highlighting the safety and performance of its transcatheter valve replacement system. The study, involving 125 patients across multiple countries, showed promising results with a high success rate and significant improvements in patients’ cardiac function and quality of life. The 12-month follow-up results demonstrated sustained efficacy and safety, reinforcing the device’s potential impact on patient care and the company’s positioning in the cardiovascular device market.

Venus Medtech Announces Convertible Bonds Issuance to Boost Product Development

Venus Medtech (Hangzhou) Inc. has announced a supplemental agreement regarding the issuance of convertible bonds under a general mandate. The proceeds from this issuance will be used to accelerate the development of the company’s core product pipeline and to supplement general corporate working capital. The company has outlined specific terms for the bridge loan provided by the subscriber, including interest rates and repayment conditions. This strategic financial move is expected to enhance Venus Medtech’s operational capabilities and optimize its capital structure, potentially strengthening its position in the medical technology market.

Venus Medtech Announces EGM for Disposal Agreement Approval

Venus Medtech (Hangzhou) Inc. has announced an extraordinary general meeting to be held on November 28, 2025, to approve a Disposal Agreement with Hangzhou Binjiang Urban Construction Development Co., Ltd. This agreement involves the disposal of construction in progress and associated land use rights, potentially impacting the company’s operational focus and asset management strategy.

Venus Medtech Sells Industrial Park Property to Refocus on Core Business

Venus Medtech has announced a major transaction involving the disposal of property related to its Qiming Healthcare Life Science Industrial Park project, selling it for RMB374,563,969. This move aligns with the company’s strategic shift to concentrate on its core heart valve business, following a previously recognized impairment loss of RMB126.0 million related to the project.

Venus Medtech Completes Patient Enrollment for Cardiovalve Study in Europe

Venus Medtech has successfully completed full patient enrollment for its Cardiovalve TTVR confirmatory clinical study in Europe, marking a significant step towards obtaining CE Mark approval under the EU Medical Device Regulation. This milestone is crucial for the commercialization of Cardiovalve, an innovative system designed to treat tricuspid regurgitation, and demonstrates the company’s commitment to advancing global clinical registration and development of its product portfolio to benefit more patients worldwide.