tiprankstipranks
Trending News
More News >
Hospital Corporation of China Ltd (HK:3869)
:3869
Hong Kong Market

Hospital Corporation of China Ltd (3869) AI Stock Analysis

Compare
1 Followers

Top Page

HK

Hospital Corporation of China Ltd

(3869)

Rating:48Neutral
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 (3869) vs. iShares MSCI Hong Kong ETF (EWH)

Hospital Corporation of China Ltd Business Overview & Revenue Model

Company DescriptionHospital Corporation of China Limited, an investment holding company, engages in the operation and management of hospitals in the People's Republic of China. The company provides hospital management and consulting services to Yangsi Hospital, Cixi Hospital, and Jinhua Hospital; and general hospital services. It also engages in the wholesale of pharmaceutical products. The company was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China. Hospital Corporation of China Limited is a subsidiary of Vanguard Glory Limited.
How the Company Makes MoneyHospital 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
62
Positive
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
54
Neutral
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
48
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.44B1.43B1.14B520.29M399.21M
Gross Profit275.82M239.36M150.88M214.23M194.33M
EBITDA236.48M283.48M-464.44M-401.87M-379.86M
Net Income-38.63M131.38M-528.60M-362.40M-421.07M
Balance Sheet
Total Assets2.58B2.50B2.44B3.12B3.74B
Cash, Cash Equivalents and Short-Term Investments813.08M667.89M627.61M779.97M951.46M
Total Debt1.15B1.04B1.21B1.00B1.71B
Total Liabilities2.01B1.91B1.99B1.99B2.38B
Stockholders Equity337.71M379.09M255.71M797.97M1.08B
Cash Flow
Free Cash Flow0.0067.40M126.49M117.27M73.21M
Operating Cash Flow0.0082.69M143.13M133.07M83.48M
Investing Cash Flow0.00-15.52M187.16M13.96M104.83M
Financing Cash Flow0.00-41.62M-279.34M-550.82M-119.15M

Hospital Corporation of China Ltd Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price4.30
Price Trends
50DMA
5.56
Negative
100DMA
6.22
Negative
200DMA
5.84
Negative
Market Momentum
MACD
-0.26
Negative
RSI
66.70
Neutral
STOCH
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3869, the sentiment is Neutral. The current price of 4.3 is below the 20-day moving average (MA) of 4.42, below the 50-day MA of 5.56, and below the 200-day MA of 5.84, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 66.70 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3869.

Hospital Corporation of China Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
HK$360.43M8.385.95%12.44%0.81%27.55%
66
Neutral
HK$601.91M36.141.07%8.89%-1.20%-87.51%
60
Neutral
HK$900.00M24.395.60%-0.83%-18.97%
60
Neutral
HK$405.12M7.818.82%2.66%-10.82%-44.11%
58
Neutral
HK$311.23M14.832.73%3.41%-0.69%
51
Neutral
$7.41B0.36-61.88%2.33%17.09%1.64%
48
Neutral
HK$594.23M-10.78%-0.95%-128.35%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3869
Hospital Corporation of China Ltd
5.20
-1.20
-18.75%
HK:9906
Honliv Healthcare Management Group Co Ltd
1.50
-0.62
-29.25%
HK:1419
Human Health Holdings Ltd.
0.82
-0.19
-18.81%
HK:1518
New Century Healthcare Holding Co. Ltd.
0.80
0.02
2.56%
HK:3689
Guangdong Kanghua Healthcare Co., Ltd. Class H
1.80
-0.49
-21.40%
HK:0722
UMP Healthcare Holdings Limited
0.45
-0.02
-4.26%

Hospital Corporation of China Ltd Corporate Events

Hospital Corporation of China Ltd Announces 2025 AGM and Key Resolutions
Apr 25, 2025

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
Mar 26, 2025

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
Mar 26, 2025

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
Mar 26, 2025

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
Mar 26, 2025

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
Mar 14, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 01, 2025