Jiangxi Rimag Group Co., Ltd. Class H (2522) AI Stock Analysis

• Market Cap: HK$3.68B
• Dividend Yield: N/A
• Average Volume (3M): 10.53M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 1,342
• Sector: General
• Sector Strength: N/A
• Industry: Medical - Care Facilities
• EPS (TTM): -0.15
• Shares Outstanding: 294,128,080
• 10 Day Avg. Volume: 6,254,929
• 30 Day Avg. Volume: 10,530,505
• PEG Ratio: 2.52
• Price to Book (P/B): 15.93
• Price to Sales (P/S): 30.48
• P/FCF Ratio: -77.60
• 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: HK$30.40
• Price Target Upside: 241.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: HK$14.00 ▲(57.48% Upside)

The overall stock score is primarily impacted by weak financial performance and bearish technical indicators. The company's strong revenue growth is overshadowed by profitability and cash flow issues. Technical analysis indicates oversold conditions, but the negative valuation metrics further weigh down the score.

Positive Factors

Revenue Growth

Significant revenue growth indicates strong market demand and successful product offerings, which can enhance competitive positioning and drive future expansion.

Product Diversification

Diversification across multiple high-demand sectors reduces dependency on a single market, providing stability and growth opportunities.

Stable Capital Structure

A stable capital structure with manageable leverage supports financial resilience and the ability to invest in growth initiatives.

Negative Factors

Profitability Challenges

Persistent profitability issues indicate operational inefficiencies, which could hinder long-term financial health and investment capacity.

Cash Flow Issues

Weak cash flow conversion limits the company's ability to fund operations and growth, potentially impacting its financial stability.

Negative ROE

Negative ROE suggests the company is not efficiently using shareholders' equity to generate profits, which could deter investment and affect long-term growth.

Jiangxi Rimag Group Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Jiangxi Rimag Group Co., Ltd. Class H (2522) is a diversified company based in China, primarily engaged in the manufacturing and distribution of specialized industrial materials and components. Operating across various sectors, the company focuses on producing high-quality products for the automotive, electronics, and construction industries. Its core offerings include advanced composite materials, precision machinery parts, and innovative building materials, catering to both domestic and international markets.

How the Company Makes Money

Jiangxi Rimag Group generates revenue through multiple streams, primarily by selling its manufactured products to various industries. The company capitalizes on its extensive supply chain and robust distribution network to reach a wide range of customers, including large-scale manufacturers and construction firms. Key revenue streams include direct sales of composite materials and machinery parts, along with contracts for custom manufacturing services. Additionally, the company may engage in strategic partnerships with other firms to enhance its product offerings and expand its market reach, further contributing to its financial growth. Overall, its ability to innovate and adapt to market demands plays a significant role in driving its earnings.

Jiangxi Rimag Group Co., Ltd. Class H Financial Statement Overview

Summary

Jiangxi Rimag Group Co., Ltd. shows strong revenue growth, but profitability and cash flow metrics are concerning. The company faces challenges in converting revenue growth into sustainable profits and positive cash flow. The balance sheet is moderately leveraged, but negative returns on equity and cash flow issues highlight the need for improved financial management and operational efficiency.

Income Statement

The company shows a strong revenue growth rate of 83.85% in the most recent year, indicating significant expansion. However, profitability metrics are concerning, with a negative net profit margin of -6.04% and an EBIT margin of -3.43%, suggesting operational inefficiencies. The gross profit margin is relatively stable at 36.46%, but the negative net income highlights challenges in cost management and profitability.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.40, which is manageable. However, the return on equity is negative at -3.15%, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio stands at a healthy level, suggesting a stable capital structure, but the negative ROE is a concern for investors.

Cash Flow

Cash flow analysis reveals significant challenges, with a negative free cash flow and a free cash flow to net income ratio of -23.45, indicating cash flow issues relative to earnings. The operating cash flow to net income ratio is low at 0.03, suggesting that the company struggles to convert its earnings into cash. Despite a high free cash flow growth rate, the overall cash flow position remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	813.93M	760.59M	928.91M	784.44M	592.01M
Gross Profit	254.92M	277.33M	332.60M	236.95M	175.19M
EBITDA	139.79M	169.30M	256.20M	207.86M	-147.44M
Net Income	-33.31M	-45.92M	44.41M	364.00K	-360.73M
Balance Sheet
Total Assets	2.42B	2.26B	1.88B	1.99B	2.06B
Cash, Cash Equivalents and Short-Term Investments	381.71M	262.79M	215.79M	355.62M	509.67M
Total Debt	528.37M	578.61M	386.02M	489.07M	574.76M
Total Liabilities	798.15M	779.76M	543.54M	673.18M	752.48M
Stockholders Equity	1.59B	1.46B	1.29B	1.27B	1.27B
Cash Flow
Free Cash Flow	-71.40M	-298.75M	104.92M	-73.46M	-124.68M
Operating Cash Flow	71.64M	12.74M	201.44M	198.17M	18.00M
Investing Cash Flow	-215.73M	-327.05M	-117.07M	-251.54M	-151.03M
Financing Cash Flow	199.17M	383.74M	-235.72M	-96.45M	452.92M

Jiangxi Rimag Group Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2522, the sentiment is Negative. The current price of 8.89 is below the 20-day moving average (MA) of 11.66, below the 50-day MA of 14.27, and below the 200-day MA of 17.93, indicating a bearish trend. The MACD of -1.72 indicates Positive momentum. The RSI at 21.96 is Positive, neither overbought nor oversold. The STOCH value of 13.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2522.

Jiangxi Rimag Group Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2598	58 Neutral	HK$7.22B	3.79	94.40%	―	―	―
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
0666	44 Neutral	HK$29.49B	-33.75	-7.40%	―	33.20%	34.66%
9880	41 Neutral	HK$56.28B	-43.56	-48.85%	―	―	―
9663	40 Neutral	HK$1.85B	-5.96	-12.63%	―	―	―
2522	40 Underperform	HK$3.68B	-89.93	-2.15%	―	―	―
2498	38 Underperform	HK$17.81B	-35.98	-11.44%	―	―	―

Jiangxi Rimag Group Co., Ltd. Class H Corporate Events

Jiangxi Rimag Group Forms Strategic Alliance to Enhance Medical Imaging Services

Jiangxi Rimag Group Co., Ltd. has entered into a strategic cooperation agreement with the Qingyang Government and Medical Image Insights to establish shared medical imaging centers and digital platforms. This collaboration aims to improve regional medical resource integration, expand market presence in Northwest China, and enhance the efficiency of medical data utilization, benefiting the company’s operations and stakeholders.

Jiangxi Rimag Group Announces Significant Share Repurchase

Jiangxi Rimag Group Co., Ltd. has announced the repurchase of 1,775,000 H Shares in the market over the past six months, amounting to approximately HK$29,176,640. The repurchased shares will be held as treasury shares and are intended for use in employee incentives, sale, or transfer. The company believes this move will enhance share value and benefit shareholders, while maintaining sufficient public float as per listing requirements. The board remains optimistic about the company’s future development prospects.

Jiangxi Rimag Directors Increase Shareholding, Signaling Confidence in AI-Driven Healthcare Strategy

Jiangxi Rimag Group Co., Ltd. announced that certain directors have increased their shareholding in the company, purchasing a total of 96,500 H shares. This decision reflects their confidence in the company’s recent achievements and strategic alignment with national policies on AI and healthcare, suggesting that the current share price undervalues the company’s long-term potential.

Jiangxi Rimag Group Advances in AI Medical Imaging with Strategic Data Collaboration

Jiangxi Rimag Group Co., Ltd. has announced a strategic collaboration with Beijing Rimag Sunshine Medical Information Technology Co Ltd., Beijing Data Pioneer Zone Service Co., Ltd., and Beijing International Computing Power Service Co., Ltd. to establish a high-quality medical imaging database. This partnership, leveraging the Beijing Artificial Intelligence Data Sandbox, aims to transform the company’s data assets into marketable products, marking a significant breakthrough with the successful execution of a RMB10 million contract. The initiative aligns with national policies on data element marketization and is expected to bolster the company’s business development and competitive edge in the AI-based medical imaging sector.

Jiangxi Rimag Boosts Investment in Medical Imaging AI

Jiangxi Rimag Group Co., Ltd. has announced a capital increase in Shanghai Medical Image Insights Intelligent Technology Co., Ltd., investing approximately RMB100 million to enhance its shareholding. This strategic investment aligns with Jiangxi Rimag’s long-term plan to deepen its presence in the medical imaging field, leveraging AI technology to improve service quality and competitiveness. The move is expected to strengthen the company’s position in the rapidly growing imaging AI market, improve diagnostic capabilities, and consolidate its leadership in China’s medical imaging AI sector.

Jiangxi Rimag Group Wins Major Medical Project Bid in Tianjin

Jiangxi Rimag Group Co., Ltd. announced that its subsidiary, Tianjin Rimag Yingrun Medical Imaging Diagnostics Co., Ltd., has won the bid for a significant medical project at Tianjin Beichen Hospital. This project marks the company’s first government-collaborative healthcare resource integration initiative in Tianjin, expected to generate substantial annual revenue and bolster the company’s market presence in northern China. The project will establish a digital and intelligent healthcare sharing platform, enhancing medical resource synergy and service efficiency, and is strategically important for the company’s long-term development and expansion in the Beijing-Tianjin-Hebei region.

Jiangxi Rimag Group Unveils Revolutionary AI-Assisted Diagnostic Tool

Jiangxi Rimag Group Co., Ltd. has announced the launch of the world’s first AI-assisted diagnostic product, developed by Medical Image Insights, a company it has invested in. This product represents a significant advancement in medical imaging AI, transitioning from single-disease models to comprehensive diagnostic capabilities across multiple diseases and organs. The AIR Product is expected to enhance the Group’s imaging services, reduce development costs, and foster industry collaboration, ultimately transforming medical imaging AI into a systematic and collaborative diagnostic tool.