Arrail Group Ltd. (6639) AI Stock Analysis

• Market Cap: HK$1.03B
• Dividend Yield: N/A
• Average Volume (3M): 852.75K
• Price to Earnings (P/E): 39.7
• Beta (1Y): 1.17
• Revenue Growth: -4.30%
• EPS Growth: 13.83%
• Country: HK
• Employees: 3,296
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): N/A
• Shares Outstanding: 564,030,940
• 10 Day Avg. Volume: 820,350
• 30 Day Avg. Volume: 852,750
• PEG Ratio: 1.08
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 4.62
• 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: 52 Neutral
• Price Target: HK$2.00 ▲(9.29% Upside)

The overall stock score of 52 reflects a combination of mixed financial performance and bearish technical indicators. While cash flow and profitability have shown improvement, the stock's technical analysis indicates a bearish trend, and the valuation suggests potential overvaluation. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Cash Flow Management

Strong cash flow management indicates the company's ability to generate cash efficiently, supporting long-term operations and investments.

Balance Sheet Stability

A stable debt-to-equity ratio suggests financial prudence, providing resilience against economic fluctuations and supporting growth initiatives.

Profitability Improvement

Improved profitability reflects effective cost management and operational efficiency, enhancing the company's financial health and sustainability.

Negative Factors

Revenue Growth Challenges

Inconsistent revenue growth can hinder long-term expansion and market competitiveness, necessitating strategic adjustments to drive sales.

Operational Efficiency

Decreasing gross margins suggest challenges in maintaining cost efficiency, potentially impacting profitability and competitive positioning.

Mixed Financial Performance

Mixed financial performance highlights the need for strategic focus on enhancing revenue streams and operational processes to ensure sustainable growth.

Arrail Group Ltd. Business Overview & Revenue Model

Company Description

Arrail Group Limited operates dental hospitals and clinics in China. It operates through Arrail Dental and Rytime Dental brand names. The company's dental services comprise general dentistry; orthodontics; and implantology. As of March 21, 2022, it operated 51 clinics under the Arrail Dental brand and 54 clinics under the Rytime Dental brand; and seven hospitals under the Rytime Dental brand.. The company was founded in 1999 and is based in Beijing, China.

How the Company Makes Money

Arrail Group generates revenue primarily through its dental services, which include consultations, treatments, and preventive care for patients. The company's revenue model is based on a fee-for-service structure, where patients pay for individual treatments or packages offered by the clinics. Key revenue streams include orthodontic treatments, cosmetic procedures, dental implants, and routine check-ups. The company also benefits from partnerships with insurance providers, which can enhance patient access to services and potentially increase the volume of patients served. Additionally, Arrail Group may engage in strategic collaborations with suppliers of dental materials and equipment, which can also contribute to cost efficiencies and revenue generation.

Arrail Group Ltd. Financial Statement Overview

Summary

Arrail Group Ltd. shows a mixed financial performance. Profitability and cash flow have improved, but revenue growth and operational efficiency present challenges. The balance sheet is stable, with manageable leverage and a solid asset base. Continued focus on cost management and revenue growth will be crucial for enhancing financial performance.

Income Statement

The income statement shows a mixed performance. Gross profit margin has slightly decreased over the years, indicating some pressure on cost management. The net profit margin has improved from negative to positive, showing a recovery in profitability. However, the revenue growth rate has been inconsistent, with a recent decline of 3.36%. The EBIT and EBITDA margins are stable but not particularly strong, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio is stable at around 0.6, indicating manageable leverage. Return on equity has improved but remains low, suggesting limited profitability relative to shareholder equity. The equity ratio is healthy, showing a solid asset base relative to liabilities. Overall, the company maintains a stable but not overly strong financial structure.

Cash Flow

Cash flow analysis reveals positive trends. Free cash flow growth has been strong recently, and the free cash flow to net income ratio is robust, indicating good cash generation relative to earnings. The operating cash flow to net income ratio is moderate, suggesting that cash flow from operations is supporting profitability. Overall, cash flow management appears to be a strength for the company.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.75B	1.69B	1.75B	1.47B	1.62B	1.52B
Gross Profit	364.84M	342.09M	392.68M	247.08M	336.56M	364.42M
EBITDA	93.34M	312.65M	322.35M	87.85M	42.10M	-300.84M
Net Income	20.83M	21.99M	17.16M	-219.91M	-701.03M	-599.42M
Balance Sheet
Total Assets	3.13B	3.16B	3.25B	3.06B	2.99B	2.35B
Cash, Cash Equivalents and Short-Term Investments	997.94M	1.09B	1.10B	937.53M	1.26B	727.31M
Total Debt	1.05B	1.03B	1.05B	955.68M	890.67M	1.03B
Total Liabilities	1.39B	1.38B	1.42B	1.37B	1.38B	4.81B
Stockholders Equity	1.67B	1.71B	1.76B	1.61B	1.56B	-2.50B
Cash Flow
Free Cash Flow	172.32M	172.69M	184.21M	23.50M	108.63M	213.50M
Operating Cash Flow	217.17M	231.14M	276.65M	131.66M	224.28M	242.87M
Investing Cash Flow	74.11M	-153.52M	-176.00M	-342.44M	-203.94M	61.75M
Financing Cash Flow	-274.06M	-206.84M	-106.96M	-280.35M	380.86M	217.51M

Arrail Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.83
• 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:6639, the sentiment is Neutral. The current price of 1.83 is above the 20-day moving average (MA) of 1.79, below the 50-day MA of 1.85, and below the 200-day MA of 2.11, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.08 is Neutral, neither overbought nor oversold. The STOCH value of 30.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:6639.

Arrail Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1846	69 Neutral	HK$1.01B	13.34	6.35%	1.96%	-1.61%	-27.39%
2219	68 Neutral	HK$1.89B	9.94	7.31%	9.36%	-3.19%	-20.30%
2373	66 Neutral	HK$6.27B	21.36	31.23%	2.00%	28.53%	22.34%
1951	55 Neutral	HK$6.94B	-6.53	-9.67%	2.43%	-8.56%	-403.12%
6639	52 Neutral	HK$1.03B	39.67	1.27%	―	-4.30%	13.83%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
3309	47 Neutral	HK$1.91B	-17.41	-6.41%	1.21%	2.05%	-285.88%

Arrail Group Ltd. Corporate Events

Arrail Group Delays Interim Results Amid Audit Concerns

Arrail Group Limited has announced a delay in the publication of its interim financial results for the six months ended September 30, 2025, due to an issue identified by its auditors, PricewaterhouseCoopers. The auditors have requested additional time to investigate certain payments related to a loan agreement with Beier Holdings Limited, which could impact the company’s financial disclosures. Consequently, the company has postponed its board meeting and may face a suspension of trading on the Hong Kong Stock Exchange if the results are not published by November 30, 2025. This situation highlights potential challenges in the company’s financial oversight and could affect investor confidence.

Arrail Group Anticipates Significant Profit Increase

Arrail Group Limited, incorporated in the British Virgin Islands and continued in the Cayman Islands, has announced a significant financial improvement. The company expects to report a profit before income tax of no less than RMB20 million for the six months ended September 30, 2025, a substantial increase from the RMB7.4 million profit recorded in the same period in 2024. This growth is attributed to the implementation of AI-enabled clinical and business management systems, a recovery in patient demand, and effective cost management strategies. Stakeholders are advised to await the final interim results, which may differ from current estimates.

Arrail Group Announces Upcoming Board Meeting for Interim Results

Arrail Group Limited, incorporated in the British Virgin Islands and continued in the Cayman Islands, has announced a board meeting scheduled for November 28, 2025. The meeting will address the approval and publication of the company’s consolidated interim results for the six months ending September 30, 2025, and consider the payment of an interim dividend.

Arrail Group Limited AGM Approves Key Resolutions

Arrail Group Limited, a company incorporated in the British Virgin Islands and continued in the Cayman Islands, held its Annual General Meeting on September 26, 2025. During the meeting, all proposed resolutions were approved by shareholders, including the adoption of financial statements, re-election of directors, and the appointment of auditors. The meeting also granted the board mandates to issue and repurchase shares, reflecting strong shareholder support for the company’s governance and strategic decisions.