C-MER Eye Care Holdings Limited (3309) AI Stock Analysis

• Market Cap: HK$2.01B
• Dividend Yield: 1.2%
• Average Volume (3M): 495.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: 2.05%
• EPS Growth: -285.88%
• Country: HK
• Employees: 2,041
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.04
• Shares Outstanding: 1,232,342,900
• 10 Day Avg. Volume: 419,185
• 30 Day Avg. Volume: 495,465
• PEG Ratio: 0.06
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 1.30
• P/FCF Ratio: 19.91
• 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): 0.62
• Revenue Forecast (FY): HK$19.13B

• Rating: 47 Neutral
• Price Target: HK$1.50 ▼(-11.76% Downside)

C-MER Eye Care Holdings Limited's overall stock score is primarily impacted by its financial challenges, including declining profitability and cash flow issues. Technical analysis also indicates bearish momentum, and valuation metrics reflect negative earnings, contributing to a lower score. The company's strong equity position is a positive aspect, but immediate improvements in profitability and cash flow are necessary for a better outlook.

Positive Factors

Market position & scale

Operating a network of hospitals and clinics across Hong Kong and Asia gives the company durable patient flow, referral networks and local brand recognition. Scale supports investment in specialized equipment and talent, sustaining service breadth and steady procedure volumes over months.

Conservative capital structure

Low leverage and a high equity ratio provide financial flexibility to weather operational stress and fund targeted investments without over-reliance on debt. This conservative balance sheet supports credit access and resilience, important for multi-month recovery or strategic spending.

Diversified clinical revenue streams

Multiple service lines and product sales create diversified, fee-for-service cash inflows and recurring procedure demand. Partnerships with insurers and institutions help stabilize reimbursement flows, reducing reliance on a single treatment and improving revenue resilience over quarters.

Negative Factors

Negative profitability metrics

Sustained negative margins indicate the business currently fails to cover operating costs from core activities, limiting retained earnings and reinvestment capacity. Over multiple months this can force cost cuts, delay technology upgrades, and weaken competitiveness in specialized ophthalmic services.

Weak cash generation

A collapse in operating and free cash flow removes internal funding for capex, working capital and strategic initiatives. Reliance on external financing or equity raises dilution or cost of capital, constraining the company’s ability to invest in equipment, clinics or marketing over coming quarters.

Declining revenue and margin trend

A shrinking top line combined with compressing EBITDA margin erodes scale economics and free resources for growth. If persistent, this trend reduces competitive pricing power and investment capacity, risking longer-term market share loss and impaired ability to maintain service quality.

C-MER Eye Care Holdings Limited Business Overview & Revenue Model

Company Description

C-MER Eye Care Holdings Ltd. engages in the provision of treatments and therapy services for ophthalmic diseases. It operates through the Provision of Ophthalmic Services and the Sale of Vision Aid Products segments. The company was founded by Shun Chiu Lam on February 1, 2016 and is headquartered in Hong Kong.

How the Company Makes Money

C-MER Eye Care Holdings Limited generates revenue primarily through its clinical services, which encompass fees charged for surgical procedures, consultations, and diagnostic tests. The company has established several revenue streams, including payment for cataract surgeries, laser eye surgeries, and other specialized treatments. Additionally, C-MER may earn income from selling ophthalmic products and services, such as prescription glasses and contact lenses. Strategic partnerships with healthcare institutions and insurance providers further enhance its ability to attract patients and secure reimbursements, contributing significantly to its overall earnings.

C-MER Eye Care Holdings Limited Financial Statement Overview

Summary

C-MER Eye Care Holdings Limited is facing financial challenges, with declining profitability and cash flow in 2024. The company has a strong equity position and low leverage, but negative growth in revenue and net income raises concerns about future performance. Immediate attention is needed on profitability and cash flow generation to support long-term stability.

Income Statement

C-MER Eye Care Holdings Limited shows a mixed performance. The gross profit margin for 2024 is approximately 31.2%, indicating a decline from the previous year's 32.2%. The net profit margin turned negative in 2024 at -7.1%, down from 3.2% in 2023, reflecting a significant drop in profitability. Revenue growth is negative at -0.6% from 2023 to 2024. The EBIT margin is negative at -3.5% in 2024, down from 6.2% in 2023, and the EBITDA margin also decreased from 18.7% to 10.9%.

Balance Sheet

The company maintains a relatively stable equity position with an equity ratio of approximately 64.4% in 2024. The debt-to-equity ratio is 0.25, indicating a conservative leverage approach. However, return on equity has turned negative in 2024 at -7.7%, contrasting with a positive ROE of 3.4% in 2023, highlighting recent challenges in generating returns for shareholders.

Cash Flow

C-MER Eye Care Holdings Limited faced challenges with cash flow in 2024. Operating cash flow and free cash flow are reported as zero, which is concerning compared to the positive free cash flow of 245 million in 2023. This suggests potential issues with cash generation and management, impacting the company's ability to fund operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.93B	1.91B	1.92B	1.73B	1.11B	699.54M
Gross Profit	601.68M	527.62M	618.96M	365.34M	309.44M	163.65M
EBITDA	200.03M	209.18M	363.38M	194.31M	177.80M	111.39M
Net Income	-115.98M	-135.16M	62.00M	-21.88M	21.86M	-6.25M
Balance Sheet
Total Assets	2.76B	2.72B	2.75B	2.90B	1.96B	1.63B
Cash, Cash Equivalents and Short-Term Investments	435.71M	467.25M	557.42M	698.51M	442.36M	553.93M
Total Debt	423.12M	437.79M	362.99M	452.49M	471.69M	244.97M
Total Liabilities	823.32M	830.24M	755.35M	903.45M	618.63M	331.98M
Stockholders Equity	1.78B	1.75B	1.85B	1.87B	1.33B	1.29B
Cash Flow
Free Cash Flow	143.66M	124.50M	245.30M	100.63M	19.18M	-233.39M
Operating Cash Flow	262.62M	283.12M	361.15M	191.86M	148.41M	104.03M
Investing Cash Flow	-172.88M	-174.72M	-245.37M	-210.65M	-392.72M	-157.94M
Financing Cash Flow	-198.66M	-194.92M	-242.88M	293.68M	85.12M	322.37M

C-MER Eye Care Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.70
• 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:3309, the sentiment is Neutral. The current price of 1.7 is above the 20-day moving average (MA) of 1.66, below the 50-day MA of 1.72, and below the 200-day MA of 1.77, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 49.76 is Neutral, neither overbought nor oversold. The STOCH value of 31.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3309.

C-MER Eye Care Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1846	69 Neutral	HK$936.93M	12.32	6.35%	1.99%	-1.61%	-27.39%
2219	68 Neutral	HK$1.87B	9.87	7.31%	9.29%	-3.19%	-20.30%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
3309	47 Neutral	HK$2.01B	-17.72	-6.41%	1.20%	2.05%	-285.88%

C-MER Eye Care Holdings Limited Corporate Events

C-MER Eye Care Disposes Stake in Apollo to Refocus Strategy

C-MER Eye Care Holdings Limited has signed an agreement with HKO to transfer its 55% equity interest in Apollo back to HKO. The transaction involves the cancellation of a bond previously issued as part of Apollo’s acquisition. With this disposal, Apollo will no longer remain a subsidiary of the company. The move reflects C-MER’s strategy to streamline resources and focus on its core healthcare businesses, including ophthalmology and dental services, in key markets. The Directors have confirmed the transaction aligns with commercial fairness and the interests of the company’s stakeholders, potentially strengthening its operational focus and financial efficiency.

The most recent analyst rating on (HK:3309) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on C-MER Eye Care Holdings Limited stock, see the HK:3309 Stock Forecast page.