Shanghai Heartcare Medical Technology Corp. Ltd. Class H (6609) AI Stock Analysis

• Market Cap: HK$1.93B
• Dividend Yield: N/A
• Average Volume (3M): 127.28K
• Price to Earnings (P/E): 42.0
• Beta (1Y): 1.33
• Revenue Growth: 32.93%
• EPS Growth: N/A
• Country: HK
• Employees: 344
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 1.44
• Shares Outstanding: 31,565,804
• 10 Day Avg. Volume: 119,990
• 30 Day Avg. Volume: 127,280
• PEG Ratio: 0.67
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 2.80
• P/FCF Ratio: -92.80
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: HK$47.00 ▼(-6.75% Downside)

The overall stock score of 55 reflects a combination of promising financial performance and bearish technical indicators. While the company shows strong revenue growth and a solid balance sheet, its profitability metrics need improvement. The stock's current bearish trend and high P/E ratio suggest caution. Investors should monitor for improvements in profitability and technical signals before considering entry.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and product demand, supporting long-term business sustainability and potential for increased market share.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing the company with flexibility to invest in growth opportunities and withstand economic fluctuations.

Market Demand

Growing demand for cardiovascular solutions supports long-term revenue potential, as the company is well-positioned to capitalize on industry trends and healthcare needs.

Negative Factors

Profitability Challenges

Ongoing net losses and cash flow issues indicate challenges in achieving profitability, which could hinder the company's ability to reinvest in growth and innovation.

Cash Flow Management

Negative cash flow suggests inefficiencies in operations and cash management, potentially limiting the company's ability to fund new projects and maintain financial health.

Operational Inefficiencies

Negative EBIT and EBITDA margins reflect operational inefficiencies, which may impact the company's ability to improve profitability and compete effectively in the market.

Shanghai Heartcare Medical Technology Corp. Ltd. Class H Business Overview & Revenue Model

Company Description

Shanghai HeartCare Medical Technology Corporation Limited engages in the research, development, manufacture, and sale of neuro-interventional medical devices worldwide. The company offers ischemic stroke thrombectomy, intracranial stenosis treatment, ischemic stroke prevention, hemorrhagic stroke treatment, and vascular access devices. Its products are used for the treatment and prevention of ischemic stroke, including acute ischemic stroke and intracranial stenosis, as well as for the treatment of hemorrhagic stroke. The company was formerly known as Shanghai Care Medical Technology Corporation Limited. Shanghai HeartCare Medical Technology Corporation Limited was incorporated in 2016 and is headquartered in Shanghai, the People's Republic of China.

How the Company Makes Money

Shanghai Heartcare Medical Technology Corp. Ltd. generates revenue through multiple streams, primarily by selling its proprietary medical devices and diagnostic equipment to hospitals, clinics, and healthcare providers. The company also earns money through software solutions that integrate with its devices, offering analytics and data management services. Additionally, it may have revenue from partnerships with healthcare institutions for research and development, as well as collaborations with pharmaceutical companies for integrated therapeutic solutions. The company benefits from ongoing training and support services provided to healthcare professionals, which also contributes to its revenue. Furthermore, the increasing demand for cardiovascular health solutions in the aging population and the growing prevalence of heart disease enhances the company's earning potential.

Shanghai Heartcare Medical Technology Corp. Ltd. Class H Financial Statement Overview

Summary

Shanghai Heartcare Medical Technology Corp. Ltd. Class H shows promising revenue growth and a strong balance sheet with low leverage. However, profitability metrics such as net profit margin and EBIT margin indicate areas for improvement. The cash flow situation is improving, with significant growth in free cash flow, but operational cash flow coverage remains a concern. Overall, the company is on a positive trajectory but needs to focus on enhancing profitability and operational efficiency.

Income Statement

The company has shown a positive revenue growth rate of 9.31% in the TTM, indicating a strong upward trajectory in sales. Gross profit margin remains healthy at 67.49%, reflecting efficient cost management. However, the net profit margin is relatively low at 12.67%, suggesting room for improvement in profitability. The EBIT margin is negative, which is a concern, but the EBITDA margin is positive, indicating some operational efficiency.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.041, indicating low financial leverage and risk. Return on equity is modest at 3.90%, showing some profitability for shareholders. The equity ratio is high, suggesting a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

The company has achieved significant free cash flow growth of 162.48% in the TTM, which is a positive sign of improving cash generation. The operating cash flow to net income ratio is 0.61, indicating that operating cash flows are not fully covering net income. The free cash flow to net income ratio is 0.73, suggesting that a substantial portion of net income is being converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	334.94M	277.90M	232.34M	183.03M	90.09M	14.56M
Gross Profit	226.03M	181.72M	151.79M	124.33M	54.95M	7.09M
EBITDA	22.90M	21.87M	-68.50M	-167.31M	-183.34M	-206.19M
Net Income	42.44M	-13.62M	-94.01M	-200.38M	-194.22M	-213.66M
Balance Sheet
Total Assets	1.25B	1.21B	1.20B	1.31B	1.50B	773.63M
Cash, Cash Equivalents and Short-Term Investments	718.20M	713.72M	721.14M	870.12M	1.22B	632.42M
Total Debt	45.91M	35.75M	36.38M	50.69M	41.94M	24.69M
Total Liabilities	137.78M	144.00M	125.60M	147.08M	132.10M	82.60M
Stockholders Equity	1.11B	1.06B	1.08B	1.17B	1.37B	681.37M
Cash Flow
Free Cash Flow	30.56M	-8.39M	-137.72M	-304.01M	-260.33M	-90.42M
Operating Cash Flow	41.60M	-3.23M	-88.41M	-266.77M	-205.85M	-74.81M
Investing Cash Flow	-194.07M	10.80M	-125.45M	44.84M	-161.10M	-4.53M
Financing Cash Flow	-11.15M	-12.38M	-21.48M	-24.75M	821.25M	686.22M

Shanghai Heartcare Medical Technology Corp. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6609, the sentiment is Positive. The current price of 50.4 is above the 20-day moving average (MA) of 47.05, below the 50-day MA of 51.47, and above the 200-day MA of 43.81, indicating a neutral trend. The MACD of -0.54 indicates Negative momentum. The RSI at 56.29 is Neutral, neither overbought nor oversold. The STOCH value of 85.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6609.

Shanghai Heartcare Medical Technology Corp. Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1302	57 Neutral	HK$6.57B	84.27	1.98%	―	3.42%	-70.82%
6609	55 Neutral	HK$1.93B	41.97	3.84%	―	32.93%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
2235	44 Neutral	HK$3.15B	-104.71	-1.39%	―	49.86%	80.35%
2160	43 Neutral	HK$2.68B	513.64	0.22%	―	-4.38%	―
2500	41 Neutral	HK$1.01B	-1.46	-26.80%	―	-8.56%	-14.84%
9996	39 Underperform	HK$3.90B	-15.66	-11.20%	―	29.25%	9.02%

Shanghai Heartcare Medical Technology Corp. Ltd. Class H Corporate Events

Shanghai HeartCare Faces Non-Compliance Over Director’s Share Dealings

Shanghai HeartCare Medical Technology Corporation Limited announced a non-compliance incident involving the disposal of shares by a director during a black-out period. The transactions, conducted by a partnership controlled by the director’s spouse, resulted in a reduction of the director’s shareholding interest. The company has taken steps to prevent future occurrences by reminding directors of compliance requirements and planning regular training sessions to enhance corporate governance practices.