Arrail Group Ltd. (HK:6639)
:6639
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Arrail Group Ltd.
(6639)
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Rating:60Neutral
Price Target:
HK$2.00
▲(9.29% Upside)
Action:ReiteratedDate:03/24/26
The score is driven primarily by improving fundamentals and solid cash generation, supporting a credible turnaround, but upside is constrained by still-thin profitability/low ROE and a slightly softer 2025 revenue trend. Technically the stock looks range-bound, and the high P/E without a dividend meaningfully weighs on the overall rating.
Positive Factors
Strong cash generation
Consistent positive operating and free cash flow, with FCF up about 21% in 2025 and FCF ~0.75x net income, gives the business durable internal funding. This reduces reliance on external finance, supports reinvestment in clinics and tech, and underpins a credible turnaround.
Negative Factors
Very thin profitability
Extremely low net margins and ROE leave the business exposed: small cost increases or volume declines can wipe out profits. Thin earnings power constrains reinvestment, limits ability to build reserves, and makes sustained improvement dependent on structural margin expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent positive operating and free cash flow, with FCF up about 21% in 2025 and FCF ~0.75x net income, gives the business durable internal funding. This reduces reliance on external finance, supports reinvestment in clinics and tech, and underpins a credible turnaround.
Read all positive factors
Arrail Group Ltd. (6639) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.03B
Dividend YieldN/A
Average Volume (3M)852.75K
Price to Earnings (P/E)39.7
Beta (1Y)1.27
Revenue Growth-4.30%
EPS Growth13.83%
CountryHK
Employees3,296
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)N/A
Shares Outstanding564,030,940
10 Day Avg. Volume820,350
30 Day Avg. Volume852,750
Financial Highlights & Ratios
PEG Ratio1.08
Price to Book (P/B)0.47
Price to Sales (P/S)0.47
P/FCF Ratio4.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.08
Revenue Forecast (FY)HK$1.87B
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, i...
Arrail Group Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
72
Positive
| Breakdown | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.69B | 1.75B | 1.47B | 1.62B | 1.52B |
| Gross Profit | 342.09M | 392.68M | 247.08M | 336.56M | 364.42M |
| EBITDA | 312.65M | 322.35M | 87.85M | 42.10M | -300.84M |
| Net Income | 21.99M | 17.16M | -219.91M | -701.03M | -599.42M |
Balance Sheet | |||||
| Total Assets | 3.16B | 3.25B | 3.06B | 2.99B | 2.35B |
| Cash, Cash Equivalents and Short-Term Investments | 1.09B | 1.10B | 937.53M | 1.26B | 727.31M |
| Total Debt | 1.03B | 1.05B | 955.68M | 890.67M | 1.03B |
| Total Liabilities | 1.38B | 1.42B | 1.37B | 1.38B | 4.81B |
| Stockholders Equity | 1.71B | 1.76B | 1.61B | 1.56B | -2.50B |
Cash Flow | |||||
| Free Cash Flow | 172.69M | 184.21M | 23.50M | 108.63M | 213.50M |
| Operating Cash Flow | 231.14M | 276.65M | 131.66M | 224.28M | 242.87M |
| Investing Cash Flow | -153.52M | -176.00M | -342.44M | -203.94M | 61.75M |
| Financing Cash Flow | -206.84M | -106.96M | -280.35M | 380.86M | 217.51M |
Arrail Group Ltd. Technical Analysis
Positive
1.83
Price Trends
1.83
Positive
1.82
Positive
2.02
Negative
Market Momentum
<0.01
Positive
51.08
Neutral
30.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6639, the sentiment is Positive. The current price of 1.83 is above the 20-day moving average (MA) of 1.83, above the 50-day MA of 1.83, and below the 200-day MA of 2.02, indicating a neutral trend. The MACD of <0.01 indicates Positive 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 Positive sentiment for HK:6639.
Arrail Group Ltd. Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | HK$863.39M | 5.69 | 6.49% | 1.99% | -1.61% | -27.39% | |
68 Neutral | HK$1.94B | 4.06 | 7.38% | 9.29% | -3.19% | -20.30% | |
66 Neutral | HK$4.89B | 18.12 | 33.08% | 1.97% | 28.53% | 22.34% | |
60 Neutral | HK$1.03B | 39.67 | 1.30% | ― | -4.30% | 13.83% | |
55 Neutral | HK$6.89B | -6.17 | -10.66% | 2.38% | -8.56% | -403.12% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | HK$1.61B | 20.66 | 5.64% | 1.20% | 2.05% | -285.88% |
* Healthcare Sector Average
HK:6639
Arrail Group Ltd.
1.83
-0.15
-7.63%
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2.70
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2.51
-0.28
-10.04%
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2.75
0.39
16.53%
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19.50
3.56
22.33%
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C-MER Eye Care Holdings Limited
1.31
-0.01
-0.76%
Arrail Group Ltd. Corporate Events
Arrail delays interim results as probe and auditor change drag on
Mar 2, 2026
Arrail Group Limited has provided a quarterly update on the ongoing independent investigation into historical loans, repayments and related payments, noting that investigators have substantially completed major work streams but have faced delays d...
Arrail Replaces PwC as Auditor Amid Delayed Interim Review and Ongoing Probe
Feb 15, 2026
Arrail Group Limited has announced the resignation of PricewaterhouseCoopers as its auditor, following delays in the review of the group’s interim financial information for the six months ended September 30, 2025 and ongoing independent inve...
Arrail Group Extends Interim Results Delay Amid Forensic Probe Into Related Transactions
Jan 21, 2026
Arrail Group Limited has announced further delays to the publication of its interim results for the six months ended 30 September 2025 and the dispatch of its 2025 interim report, and confirmed that trading in its shares will remain suspended. The...
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.