Hospital Corporation of China Ltd (3869) AI Stock Analysis

• Market Cap: HK$621.87M
• Dividend Yield: N/A
• Average Volume (3M): 340.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: -0.95%
• EPS Growth: -128.35%
• Country: HK
• Employees: 1,841
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Care Facilities
• EPS (TTM): -0.30
• Shares Outstanding: 138,194,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 340
• PEG Ratio: 0.43
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.66
• 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

• Rating: 48 Neutral
• Price Target: ―

The overall stock score for Hospital Corporation of China Ltd is 48. Significant factors include a challenging financial performance marked by high leverage and lack of profitability, as shown by the negative net income and cash flow. Technical indicators provide a neutral outlook, with no strong momentum signals. The valuation is impacted negatively by the company's lack of profitability and absence of dividend yield, making the stock less attractive. Improvement in financial stability and profitability is essential for a positive re-rating.

Hospital Corporation of China Ltd Business Overview & Revenue Model

Company Description

Hospital Corporation of China Ltd (3869) is a prominent healthcare service provider specializing in the operation and management of hospitals in China. The company focuses on delivering comprehensive medical services, including inpatient and outpatient care, medical testing, and specialized health services. With an emphasis on quality healthcare, Hospital Corporation of China Ltd strives to enhance the accessibility and affordability of medical services across various regions in China.

How the Company Makes Money

Hospital Corporation of China Ltd generates revenue primarily through the provision of healthcare services in its managed and operated hospitals. Key revenue streams include fees collected from inpatient and outpatient services, diagnostic testing, and other medical procedures. The company also benefits from partnerships with healthcare suppliers and pharmaceutical companies, which can provide additional revenue through the distribution and use of medical products and drugs within their facilities. Furthermore, the company may receive government subsidies and incentives aimed at improving healthcare infrastructure and services in China, contributing to overall earnings.

Hospital Corporation of China Ltd Financial Statement Overview

Summary

Hospital Corporation of China Ltd faces a mixed financial outlook. While revenue growth is positive, profitability is hindered by a negative net income in 2024. The balance sheet shows high leverage, which could pose risks if not managed carefully. Cash flow concerns are evident with no operating or free cash flow in 2024, indicating potential liquidity challenges. Strategic focus on improving margins and cash flow generation will be crucial for the company's financial health.

Income Statement

The company has shown a steady increase in revenue over recent years, with a 1.02% growth from 2023 to 2024. However, the net profit margin has turned negative in 2024 due to a net loss, which is a concern. Gross profit margin has improved from 16.77% in 2023 to 19.11% in 2024, and the EBIT margin remained healthy at 12.61% in 2024. The EBITDA margin also shows improvement. Despite positive revenue growth, the negative net income affects overall profitability.

Balance Sheet

The company's debt-to-equity ratio remains high, indicating significant leverage with a ratio of 3.41 in 2024. The equity ratio has decreased to 13.07%, pointing to a lower proportion of equity financing. Return on equity has been negative in 2024 due to the net loss, highlighting concerns over shareholder returns. Despite having substantial total assets, the high debt levels pose a risk to financial stability.

Cash Flow

The company reported zero operating and free cash flow in 2024, indicating challenges in generating cash from operations. The prior year showed positive free cash flow, but the absence of operating cash flow in 2024 raises concerns. The cash flow situation suggests potential liquidity issues, which could impact the company’s ability to meet short-term obligations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.44B	1.43B	1.14B	520.29M	399.21M
	Gross Profit
275.82M	239.36M	150.88M	214.23M	194.33M
	EBIT
181.86M	214.50M	61.32M	129.83M	260.81M
	EBITDA
236.48M	283.48M	-464.44M	-401.87M	-379.86M
	Net Income Common Stockholders
-38.63M	131.38M	-528.60M	-362.40M	-421.07M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
813.08M	667.89M	627.61M	779.97M	951.46M
	Total Assets
2.58B	2.50B	2.44B	3.12B	3.74B
	Total Debt
1.15B	1.04B	1.21B	1.00B	1.71B
	Net Debt
438.11M	513.93M	716.64M	559.87M	853.01M
	Total Liabilities
2.01B	1.91B	1.99B	1.99B	2.38B
	Stockholders Equity
337.71M	379.09M	255.71M	797.97M	1.08B
Cash Flow		Free Cash Flow
0.00	67.40M	126.49M	117.27M	73.21M
	Operating Cash Flow
0.00	82.69M	143.13M	133.07M	83.48M
	Investing Cash Flow
0.00	-15.52M	187.16M	13.96M	104.83M
	Financing Cash Flow
0.00	-41.62M	-279.34M	-550.82M	-119.15M

Hospital Corporation of China Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.50
• 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:3869, the sentiment is Negative. The current price of 4.5 is below the 20-day moving average (MA) of 5.75, below the 50-day MA of 6.38, and below the 200-day MA of 5.82, indicating a bearish trend. The MACD of -0.55 indicates Positive momentum. The RSI at 1.56 is Positive, neither overbought nor oversold. The STOCH value of 8.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3869.

Hospital Corporation of China Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1530	76 Outperform	$48.45B	21.60	14.19%	1.44%	14.36%	33.22%
1513	74 Outperform	HK$33.02B	11.81	14.56%	5.03%	-5.37%	6.28%
1110	70 Outperform	HK$339.64M	7.16	6.61%	6.04%	-3.59%	4.81%
Sector *	54 Neutral	$5.31B	3.29	-45.39%	2.79%	16.77%	-0.07%
3886	50 Neutral	HK$1.52B	―	-6.55%	0.53%	0.04%	-4.88%
3869	48 Neutral	HK$621.87M	―	-10.78%	―	-0.95%	-128.35%

Hospital Corporation of China Ltd Corporate Events

Hospital Corporation of China Ltd Announces 2025 AGM and Key Resolutions

Hospital Corporation of China Ltd has announced its upcoming Annual General Meeting to be held on June 20, 2025, in Beijing. The meeting will address several key resolutions including the adoption of the 2024 financial statements, re-election of directors, and re-appointment of KPMG as auditors. Additionally, the company seeks approval for a mandate to repurchase up to 10% of its shares, which could impact its market positioning and shareholder value.

Hospital Corporation of China Ltd Reports 2024 Financial Results

Hospital Corporation of China Ltd announced its audited consolidated results for the year ended December 31, 2024. The company reported a revenue of RMB 1,442,292,000, with a gross profit margin increase from 16.8% in 2023 to 19.1% in 2024. Despite a net profit of RMB 13.8 million, the adjusted profit for the year was RMB 141.9 million, reflecting adjustments for non-operating items such as share-based awards and depreciation. This announcement highlights the company’s financial resilience and strategic adjustments in a competitive healthcare market.

Hospital Corporation of China Ltd Forms Nomination Committee to Strengthen Governance

Hospital Corporation of China Limited has established a Nomination Committee to oversee the appointment and composition of its Board of Directors. This committee, consisting of at least three members, primarily independent non-executive directors, is tasked with ensuring board diversity, assessing director independence, and recommending qualified individuals for board positions. The formation of this committee is a strategic move to enhance corporate governance and align the board’s structure with the company’s strategic goals, potentially impacting the company’s operational efficiency and stakeholder confidence.

Hospital Corporation of China Ltd Updates Nomination Committee

Hospital Corporation of China Ltd has announced changes in its nomination committee, appointing Ms. Pan Jianli and Mr. Zhou Xiangliang as new members. This move aligns with the upcoming amendments to the Corporate Governance Code and Listing Rules, aiming to enhance board diversity and governance practices.

Hospital Corporation of China Ltd Announces Board Composition

Hospital Corporation of China Ltd has announced the composition of its board of directors, highlighting the roles and functions of each member. This update reflects the company’s commitment to strong governance and strategic leadership, which may influence its operational efficiency and stakeholder confidence.

Hospital Corporation of China Ltd Schedules Board Meeting for Annual Results

Hospital Corporation of China Ltd announced that its board of directors will hold a meeting on March 26, 2025, to review and approve the annual financial results for the year ending December 31, 2024, and to consider recommending a final dividend. This meeting is crucial for stakeholders as it will provide insights into the company’s financial health and potential returns on investment.