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

• Market Cap: HK$1.91B
• Dividend Yield: 1.21%
• Average Volume (3M): 495.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• 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$2.00 ▲(21.21% Upside)

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

Strong Equity Position

A strong equity position with low leverage provides financial stability and flexibility, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Strategic Location and Reputation

Operating in high-demand locations with a strong reputation enhances the company's competitive advantage, attracting more patients and driving consistent revenue streams.

Partnerships and Collaborations

Strategic partnerships and collaborations can enhance service offerings and operational efficiency, positioning the company for long-term growth and innovation in the eye care industry.

Negative Factors

Negative Profitability

Negative profitability indicates challenges in cost management and revenue generation, which could hinder the company's ability to invest in growth and maintain competitive positioning.

Cash Flow Challenges

Zero cash flow suggests potential issues with cash management, impacting the company's ability to fund operations, pay debts, and invest in future growth.

Declining Revenue Growth

Declining revenue growth reflects challenges in maintaining market share and demand for services, which could affect long-term financial health and competitiveness.

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: Negative
• Last Price: 1.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 1.65 is below the 20-day moving average (MA) of 1.67, below the 50-day MA of 1.79, and below the 200-day MA of 1.77, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 43.30 is Neutral, neither overbought nor oversold. The STOCH value of 37.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$1.01B	13.34	6.35%	1.96%	-1.61%	-27.39%
2219	68 Neutral	HK$1.89B	9.94	7.31%	9.36%	-3.19%	-20.30%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
3309	47 Neutral	HK$1.91B	-17.41	-6.41%	1.21%	2.05%	-285.88%

C-MER Eye Care Holdings Limited Corporate Events

C-MER Medical Announces Strategic Global Licensing Agreement

C-MER Medical Holdings Limited announced a significant collaboration involving its subsidiary, Health Hope Pharma Limited (HHP), which has entered into a global licensing agreement with Gilead Sciences and Hanmi Pharm for encequidar, a P-glycoprotein inhibitor in virology. This agreement grants Gilead exclusive global rights to encequidar, with HHP receiving an upfront payment and potential future financial benefits. This strategic move aligns with C-MER’s goal to leverage innovative drug projects, potentially impacting its market position in oncology and virology.