Aoyuan Healthy Life Group Co. Ltd. (3662) AI Stock Analysis

• Market Cap: HK$305.02M
• Dividend Yield: 6.6%
• Average Volume (3M): 549.19K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.63
• Revenue Growth: -14.43%
• EPS Growth: -77.55%
• Country: HK
• Employees: 1,895
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.04
• Shares Outstanding: 726,250,000
• 10 Day Avg. Volume: 348,000
• 30 Day Avg. Volume: 549,192
• PEG Ratio: -0.08
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 3.01
• 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: 63 Neutral
• Price Target: HK$0.44 ▼(-0.68% Downside)

The overall stock score of 63 reflects a mixed outlook for Aoyuan Healthy Life Group Co. Ltd. The most significant factor is the company's financial performance, which shows a strong balance sheet but declining revenue and cash flow challenges. Technical analysis indicates bearish momentum, which is a concern. However, the stock's valuation is attractive with a low P/E ratio and high dividend yield, providing some upside potential.

Positive Factors

Strong balance sheet, low leverage

Aoyuan’s very low leverage and >50% equity ratio provide durable financial flexibility. This reduces refinancing and solvency risk, supports investment or M&A, and gives buffer to withstand cyclical shocks—strengthening the company’s long-term resilience and optionality.

Diversified health and property business model

Multiple, complementary revenue streams (health services, property management, wellness products) reduce single-market dependence. This structural diversification supports more stable fee and service income, cross-selling opportunities, and resilience across property and healthcare cycles.

Stable gross profit margin

A stable ~28% gross margin indicates durable unit economics and some pricing or cost-control advantage in core services. Even amid revenue pressure, sustained gross margins help preserve gross cash generation potential and provide a base for operational recovery.

Negative Factors

Sustained revenue decline

Consistent multi-year revenue contraction undermines scale and fixed-cost absorption, reducing operating leverage. Over months this can impair reinvestment capacity, shrink addressable market share, and pressure long-term growth prospects if not reversed by strategic initiatives.

Weak operating cash flow and falling free cash flow

Negative operating cash flow and shrinking free cash flow are structural red flags for sustaining operations and funding capex or growth. Even with low debt, persistent cash deficits may force asset sales, external financing, or scaling back investments, weakening long-term competitiveness.

Deteriorating profitability and EPS

Sharp margin erosion and a large EPS decline signal weakening operational efficiency or pricing power. Over time this reduces return on equity and investor reinvestment capacity, and suggests management must address structural cost drivers or revenue mix to restore sustainable profitability.

Aoyuan Healthy Life Group Co. Ltd. Business Overview & Revenue Model

Company Description

Aoyuan Healthy Life Group Company Limited, through its subsidiaries, provides property management and commercial operational services in the People's Republic of China. The company offers property management services for high-end residence communities, commercial complexes, apartments, office buildings, villas, tourist towns, etc.; sales assistance services to property developers comprising cleaning, greening, security, and repair and maintenance services; and other value added services to property owners or tenants. As of December 31, 2020, the company provided property management services to 346 properties in 63 cities covering 19 provinces, municipalities, and autonomous regions in China involving a total gross floor area of approximately 41.4 million square meters. It also provides commercial operational services for shopping malls comprising pre-planning, commercial design, technical consultation, business tenant sourcing agency, preparation for business grand opening, and asset operation, etc. In addition, the company offers traditional Chinese medicine, elder care, health management consulting service, and western medical diagnosis and treatment services; and decoration and furniture, design management and consulting, installation and heating, and engineering consulting services. The company was founded in 2000 and is based in Guangzhou, the People's Republic of China. Aoyuan Healthy Life Group Company Limited is a subsidiary of Main Trend Limited.

How the Company Makes Money

Aoyuan Healthy Life Group generates revenue through multiple key streams, primarily from its health management services, property management fees, and sales of wellness products. The company's health management services provide preventive healthcare, rehabilitation, and wellness programs, which are monetized through service fees and partnerships with healthcare providers. In addition, the company earns income from property management by overseeing residential and commercial properties, charging management fees and service charges to property owners. Furthermore, Aoyuan's wellness products, which may include health supplements and lifestyle goods, contribute to its revenue through direct sales and potential collaborations with retail partners. Significant partnerships with healthcare institutions and property developers also enhance its revenue potential, creating synergies that drive growth across its business operations.

Aoyuan Healthy Life Group Co. Ltd. Financial Statement Overview

Summary

Aoyuan Healthy Life Group Co. Ltd. shows a mixed financial performance. The income statement reveals declining revenue and profitability margins, indicating challenges in maintaining growth and operational efficiency. The balance sheet is robust with low leverage and strong equity, suggesting resilience. However, cash flow analysis reveals potential concerns with negative operating cash flow, which may hinder future growth and investment capabilities.

Income Statement

The company has experienced declining revenue over the past few years, with a significant drop from 2020 to 2021, and a continued decline through 2024. Gross Profit Margin (28.41% in 2024) has been relatively stable, but Net Profit Margin has deteriorated, dropping from 17.83% in 2020 to 7.10% in 2024. The EBIT and EBITDA margins have also shown a downward trend, reflecting decreasing operational efficiency.

Balance Sheet

The company maintains a strong equity position with an Equity Ratio of 51.00% in 2024, indicating a solid foundation and reduced financial risk. The Debt-to-Equity Ratio is low at 0.07, showing conservative leverage management. Additionally, Return on Equity has decreased slightly over the years, reflecting reduced profitability. However, the company’s high cash reserves relative to its debt provide a buffer against financial instability.

Cash Flow

The cash flow situation is mixed. Operating Cash Flow has turned negative in 2024, indicating potential challenges in generating cash from core operations. The Free Cash Flow has also declined, with significant negative trends in prior years. The ratio of Operating Cash Flow to Net Income has been inconsistent, showing volatility in cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.27B	1.36B	1.56B	1.63B	1.94B	1.41B
Gross Profit	334.58M	385.04M	399.62M	397.21M	469.57M	488.68M
EBITDA	116.89M	160.95M	198.54M	245.27M	-108.96M	368.71M
Net Income	39.56M	96.22M	157.14M	160.41M	-190.94M	251.11M
Balance Sheet
Total Assets	2.29B	2.36B	2.28B	2.22B	2.29B	2.55B
Cash, Cash Equivalents and Short-Term Investments	958.01M	1.05B	984.50M	857.81M	1.21B	1.51B
Total Debt	103.59M	81.69M	114.94M	158.29M	412.59M	518.52M
Total Liabilities	1.04B	1.11B	1.13B	1.23B	1.50B	1.49B
Stockholders Equity	1.21B	1.20B	1.10B	931.48M	747.32M	1.04B
Cash Flow
Free Cash Flow	75.76M	107.61M	93.52M	-108.95M	-98.54M	505.54M
Operating Cash Flow	107.38M	140.33M	106.01M	-105.68M	-86.34M	531.10M
Investing Cash Flow	-42.51M	-30.53M	67.93M	-50.65M	31.09M	-225.22M
Financing Cash Flow	-32.61M	-51.28M	-48.34M	-272.10M	-245.32M	376.79M

Aoyuan Healthy Life Group Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.44
• 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:3662, the sentiment is Neutral. The current price of 0.44 is above the 20-day moving average (MA) of 0.42, above the 50-day MA of 0.43, and below the 200-day MA of 0.49, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.38 is Neutral, neither overbought nor oversold. The STOCH value of 78.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3662.

Aoyuan Healthy Life Group Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2165	74 Outperform	HK$514.23M	6.72	11.46%	―	5.01%	-31.83%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3662	63 Neutral	HK$305.02M	7.16	3.28%	6.60%	-14.43%	-77.55%
2376	56 Neutral	HK$430.69M	10.10	7.09%	3.90%	-3.62%	26.66%
2107	51 Neutral	HK$266.81M	-12.13	-4.06%	15.45%	6.30%	-128.34%
9608	43 Neutral	HK$199.68M	23.04	2.06%	―	0.88%	-25.81%

Aoyuan Healthy Life Group Co. Ltd. Corporate Events

Aoyuan Healthy Life Unit Signs 10-Year Lease for Guangzhou Retail Space

Aoyuan Healthy Life Group’s wholly owned subsidiary Guangzhou Panyu Yuexi has signed a 10-year lease for all supermarket, catering and retail shop units on Basement Level 1 of Panyu Aoyuan Plaza in Guangzhou, with a gross floor area of about 15,678.68 square metres. The lease, classified as an acquisition of right-of-use assets under IFRS 16 and deemed a discloseable transaction under Hong Kong listing rules, carries an initial annual rent of RMB4.14 million with a 3% increase from the sixth year, and allows the tenant to sublease or franchise the premises, potentially expanding the group’s recurring income base and reinforcing its role as an operator of community commercial facilities without requiring shareholder approval.

The most recent analyst rating on (HK:3662) stock is a Hold with a HK$0.44 price target. To see the full list of analyst forecasts on Aoyuan Healthy Life Group Co. Ltd. stock, see the HK:3662 Stock Forecast page.