Fangzhou Inc. (HK:6086)
:6086
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Fangzhou Inc.
(6086)
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Rating:43Neutral
Price Target:
HK$3.00
▼(-17.36% Downside)
Action:DowngradedDate:01/28/26
The score is held down primarily by weak financial fundamentals—ongoing losses and a strained balance sheet with negative equity—despite some improvement in operating cash flow. Technicals are neutral-to-mixed with only a short-term rebound, and valuation remains unattractive due to negative earnings and no dividend support.
Positive Factors
Operating cash flow improvement
A shift to positive operating cash flow is a durable improvement that reduces reliance on external financing and supports ongoing operating needs. For a drug manufacturer, sustained OCF helps fund trials, regulatory work and commercialization without immediate equity or debt raises.
Negative Factors
Persistent net losses and negative margins
Ongoing net losses and negative operating margins are structural red flags: they erode retained capital and limit reinvestment capacity. Without a credible pathway to sustained profitability, the company will struggle to fund growth and absorb shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating cash flow improvement
A shift to positive operating cash flow is a durable improvement that reduces reliance on external financing and supports ongoing operating needs. For a drug manufacturer, sustained OCF helps fund trials, regulatory work and commercialization without immediate equity or debt raises.
Read all positive factors
Fangzhou Inc. (6086) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.94B
Dividend YieldN/A
Average Volume (3M)2.01M
Price to Earnings (P/E)233.7
Beta (1Y)1.75
Revenue GrowthN/A
EPS GrowthN/A
CountryHK
Employees488
SectorTechnology
Sector Strength88
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)0.00
Shares Outstanding1,385,448,500
10 Day Avg. Volume2,214,042
30 Day Avg. Volume2,011,125
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)45.86
Price to Sales (P/S)2.23
P/FCF Ratio386.51
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$7.50Price Target Upside106.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.03
Revenue Forecast (FY)HK$4.56B
Fangzhou Inc. Business Overview & Revenue Model
Company Description
Fangzhou Inc. provides online chronic disease management services in China. The company provides services through online chronic disease management platform to address the needs of patients with chronic disease, such as hypertension, cardiovascula...
How the Company Makes Money
Fangzhou Inc. generates revenue through multiple streams, primarily by selling software licenses and subscriptions for its enterprise software products. The company also earns significant income from its cloud computing services, which include hos...
Fangzhou Inc. Financial Statement Overview
Summary
Income Statement
35
Negative
Balance Sheet
40
Negative
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.88B | 2.71B | 2.43B | 2.20B | 1.76B |
| Gross Profit | 518.72M | 515.94M | 487.41M | 441.20M | 262.74M |
| EBITDA | 7.47M | -739.87M | -174.76M | -123.00M | -220.66M |
| Net Income | -23.68M | -854.88M | -196.79M | -383.30M | -303.96M |
Balance Sheet | |||||
| Total Assets | 768.78M | 664.09M | 521.37M | 582.57M | 426.54M |
| Cash, Cash Equivalents and Short-Term Investments | 294.17M | 261.51M | 146.32M | 134.91M | 84.66M |
| Total Debt | 36.47M | 50.89M | 49.72M | 1.99B | 18.27M |
| Total Liabilities | 618.79M | 532.39M | 2.42B | 2.50B | 2.07B |
| Stockholders Equity | 149.99M | 131.70M | -1.90B | -1.92B | -1.34B |
Cash Flow | |||||
| Free Cash Flow | -13.17M | 15.63M | 16.63M | -65.42M | -262.72M |
| Operating Cash Flow | -11.82M | 19.54M | 22.28M | -59.28M | -246.43M |
| Investing Cash Flow | -108.95M | -111.51M | 16.42M | 14.31M | -4.32M |
| Financing Cash Flow | 156.66M | 119.62M | -29.31M | 82.23M | -11.41M |
Fangzhou Inc. Technical Analysis
Negative
3.63
Price Trends
2.15
Negative
2.50
Negative
3.20
Negative
Market Momentum
-0.24
Negative
31.61
Neutral
29.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6086, the sentiment is Negative. The current price of 3.63 is above the 20-day moving average (MA) of 1.43, above the 50-day MA of 2.15, and above the 200-day MA of 3.20, indicating a bearish trend. The MACD of -0.24 indicates Negative momentum. The RSI at 31.61 is Neutral, neither overbought nor oversold. The STOCH value of 29.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6086.
Fangzhou Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | HK$107.10B | 22.87 | 11.30% | 2.70% | -18.07% | -33.27% | |
68 Neutral | HK$5.10B | 13.14 | 5.98% | 4.47% | 0.73% | -34.04% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | HK$11.28B | 9.82 | 2.75% | ― | -2.54% | -48.74% | |
47 Neutral | HK$7.68B | -6.78 | -10.01% | ― | -32.90% | -152.00% | |
43 Neutral | HK$1.94B | 233.73 | 7.59% | ― | ― | ― | |
43 Neutral | HK$82.27B | -42.61 | -7.19% | ― | 17.96% | 46.64% |
* Technology Sector Average
HK:6086
Fangzhou Inc.
1.40
-1.74
-55.41%
HK:1093
CSPC Pharmaceutical Group
9.31
4.47
92.28%
HK:2186
Luye Pharma Group
2.87
1.10
62.15%
HK:1666
Tong Ren Tang Technologies Co
3.98
-0.46
-10.38%
HK:1799
Xinte Energy Co., Ltd. Class H
5.37
1.13
26.65%
HK:0020
SenseTime Group, Inc. Class B
2.03
0.67
49.26%
Fangzhou Inc. Corporate Events
Fangzhou Raises HK$144.3 Million to Speed AI Chronic Disease Platform Expansion
Feb 2, 2026
Fangzhou Inc. has completed a placing of 45,181,000 existing shares at HK$3.32 per share to at least six independent investors, followed by a top-up subscription of an equal number of new shares by the vendor, resulting in the issuance of new shar...
Fangzhou Inc. Launches 3.3% Share Placing and Matching Top-Up Subscription
Jan 27, 2026
Fangzhou Inc. has entered into a placing and subscription agreement under its general mandate, whereby a major shareholder (the Vendor) will place 45,181,000 existing shares to investors at HK$3.32 per share, and subsequently subscribe for an equi...
Fangzhou Signals 2025 Return to Profit on Strong Platform Growth
Jan 25, 2026
Fangzhou Inc. has issued a positive profit alert, projecting 2025 revenue of approximately RMB3.50 billion to RMB3.55 billion, about 30% higher than the prior year, and a swing to a net profit of RMB7 million to RMB10 million from a net loss befor...
Fangzhou Says Tencent Healthcare Tie-Up Is Routine Amid Unusual Share Price Move
Jan 13, 2026
Fangzhou Inc. has clarified that its previously announced strategic collaboration with Tencent Healthcare is part of its routine, ordinary business activities and does not represent an exceptional development. Responding to a recent rise in its sh...
Fangzhou Inc. Announces Leadership Reshuffle
Dec 7, 2025
Fangzhou Inc. has announced significant leadership changes, including the resignation of Mr. Xie Fangmin as Chairman, CEO, and Authorized Representative, effective December 7, 2025. Mr. Xie will transition to a non-executive Director role. Mr. Dav...
Fangzhou Inc. Announces Board Composition and Roles
Dec 7, 2025
Fangzhou Inc. has announced the composition of its board of directors and their respective roles within the company. The announcement details the members of the board, including executive, non-executive, and independent non-executive directors, an...
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.