BetterLife Holding Limited (6909) AI Stock Analysis

• Market Cap: HK$354.82M
• Dividend Yield: 9.65%
• Average Volume (3M): 174.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: -14.32%
• EPS Growth: -192.28%
• Country: HK
• Employees: 1,450
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 0.01
• Shares Outstanding: 622,500,000
• 10 Day Avg. Volume: 431,800
• 30 Day Avg. Volume: 174,066
• PEG Ratio: 0.17
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.07
• P/FCF Ratio: 1.35
• 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: HK$0.50
• Price Target Upside: -12.28% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: HK$0.50 ▼(-12.28% Downside)

BetterLife Holding Limited's overall stock score is driven by strong cash flow management and an attractive dividend yield, despite challenges in profitability and mixed technical indicators. The stable balance sheet provides some reassurance, but the negative P/E ratio and declining return on equity highlight potential risks.

BetterLife Holding Limited Business Overview & Revenue Model

Company Description

BetterLife Holding Limited provides automobile dealership services with a focus on luxury and ultra-luxury brands in China. It also sells various new automobiles, as well as after-sales products and services, including repair and maintenance services; and accessories and other automobile-related products. In addition, the company provides insurance agency and automobile license plate registration services; and automobile-related value-added services, such as automobile financing and pre-owned automobile brokerage services. As of December 31, 2021, it operated 14 4S dealership stores for Porsche, Audi, Mercedes-Benz, Bentley, Volvo, and Jaguar-Land Rover in Beijing, Tianjin, Shandong, Sichuan, Zhejiang, Shanghai, and Guangdong. BetterLife Holding Limited was founded in 1998 and is headquartered in Beijing, China.

How the Company Makes Money

BetterLife Holding Limited generates revenue through multiple streams primarily centered around the automotive industry. The company makes money from the sale of new and used vehicles, which constitutes a significant portion of its earnings. Additionally, BetterLife offers after-sales services such as maintenance, repairs, and sale of automotive parts and accessories, contributing to its revenue. The company may also have strategic partnerships with automotive manufacturers and financial institutions to facilitate vehicle sales and financing options, further bolstering its income. These revenue streams, combined with a focus on expanding its market presence and enhancing customer experience, underpin the company's financial performance.

BetterLife Holding Limited Financial Statement Overview

Summary

BetterLife Holding Limited faces challenges in revenue growth and profitability, with declining margins and negative net income in 2024. The balance sheet remains stable with manageable leverage, but declining return on equity is a concern. Cash flow metrics are strong, indicating good liquidity management despite a slight decrease in free cash flow.

Income Statement

The company has experienced a decline in revenue from 2023 to 2024, indicating a negative growth trend. Gross profit margin decreased from 5.39% in 2023 to 3.19% in 2024, and net profit margin turned negative at -0.28% in 2024, down from 0.53% in 2023. The EBIT margin also declined from 1.69% in 2023 to 0.47% in 2024. These metrics suggest challenges in maintaining profitability and cost management.

Balance Sheet

The company's debt-to-equity ratio improved slightly from 0.27 in 2023 to 0.26 in 2024, indicating stable leverage. The equity ratio remained strong at 53.90% in 2024. However, the return on equity dropped significantly from 2.11% in 2023 to -0.92% in 2024, reflecting a decline in profitability. Overall, the balance sheet shows stability but highlights concerns about declining returns.

Cash Flow

Free cash flow decreased slightly from 2023 to 2024, with a free cash flow to net income ratio of 17.61 in 2024, indicating strong cash generation relative to net income. The operating cash flow to net income ratio improved to 22.02 in 2024. Despite the decline in free cash flow, the company maintains strong cash flow metrics, suggesting good liquidity management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.28B	8.75B	10.73B	10.08B	9.96B	8.53B
Gross Profit	88.01M	278.72M	578.43M	877.54M	1.17B	863.61M
EBITDA	149.06M	205.05M	414.35M	572.11M	822.53M	606.80M
Net Income	-50.80M	-24.06M	56.81M	171.53M	456.03M	234.98M
Balance Sheet
Total Assets	5.36B	4.86B	4.71B	4.84B	4.16B	3.04B
Cash, Cash Equivalents and Short-Term Investments	529.02M	455.80M	865.74M	713.07M	1.40B	675.83M
Total Debt	1.06B	674.07M	730.19M	867.97M	405.04M	470.97M
Total Liabilities	2.63B	2.12B	1.82B	2.01B	1.35B	1.35B
Stockholders Equity	2.61B	2.62B	2.69B	2.66B	2.59B	1.53B
Cash Flow
Free Cash Flow	174.52M	423.70M	439.84M	-396.47M	221.85M	660.76M
Operating Cash Flow	459.45M	529.84M	642.85M	12.85M	405.20M	790.29M
Investing Cash Flow	-1.05B	-368.63M	-172.09M	-625.16M	293.19M	-145.59M
Financing Cash Flow	-31.35M	-570.03M	-314.46M	-28.00M	414.56M	-788.55M

BetterLife Holding Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.57
• 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:6909, the sentiment is Neutral. The current price of 0.57 is above the 20-day moving average (MA) of 0.55, below the 50-day MA of 0.58, and below the 200-day MA of 0.65, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.97 is Neutral, neither overbought nor oversold. The STOCH value of 73.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:6909.

BetterLife Holding Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6909	62 Neutral	HK$354.82M	―	-1.92%	9.65%	-14.32%	-192.28%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1728	52 Neutral	$1.43B	―	―	―	-9.07%	-26.94%
1771	52 Neutral	HK$174.00M	―	-8.81%	―	-24.42%	-115.68%
1959	45 Neutral	HK$370.99M	―	-48.30%	―	-41.19%	30.99%
3836	43 Neutral	HK$1.98B	―	-4.42%	2.96%	11.33%	56.94%

BetterLife Holding Limited Corporate Events

BetterLife Holding Limited Reports Decline in Interim Financial Results for 2025

BetterLife Holding Limited announced a significant decline in its financial performance for the first half of 2025. The company’s revenue decreased by 10.9% to approximately RMB3,812.6 million, and net profit fell sharply by 75.6% to RMB11.6 million compared to the same period in 2024. Despite a rise in after-sales service revenue by 7.8%, the overall sales of automobiles dropped by 14.0%, impacting the company’s profitability and market position. The net profit margin also decreased to 0.3% from 1.1% in the previous year, reflecting challenges in maintaining operational efficiency.

The most recent analyst rating on (HK:6909) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on BetterLife Holding Limited stock, see the HK:6909 Stock Forecast page.

BetterLife Holding Limited Issues Profit Warning Amid Market Challenges

BetterLife Holding Limited has issued a profit warning, indicating an expected decrease of up to 80% in profit attributable to its owners for the first half of 2025 compared to the same period in 2024. This decline is attributed to reduced revenue from automobile sales, driven by macroeconomic challenges and weak market sentiment, impacting the company’s gross profits and margins.

The most recent analyst rating on (HK:6909) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on BetterLife Holding Limited stock, see the HK:6909 Stock Forecast page.

BetterLife Holding Limited Announces Upcoming Board Meeting for Interim Results

BetterLife Holding Limited has announced a board meeting scheduled for August 28, 2025, to discuss and approve the company’s unaudited interim results for the first half of the year and consider the recommendation of an interim dividend. This meeting is significant as it could impact the company’s financial outlook and shareholder returns, reflecting its operational performance and strategic decisions for the period.

BetterLife Holding Completes Major Acquisitions

BetterLife Holding Limited has successfully completed several substantial acquisitions, including creditor’s rights, Jiguang Real Estate, target business, and properties. These acquisitions are expected to enhance the company’s financial position and market presence, as Jiguang Real Estate becomes a wholly-owned subsidiary and the properties and target business are now legally owned by the group.