BetterLife Holding Limited (6909) AI Stock Analysis

• Market Cap: HK$249.00M
• Dividend Yield: 12.36%
• Average Volume (3M): 30.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• 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: 60,600
• 30 Day Avg. Volume: 30,900
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: HK$0.40 ▼(-6.05% Downside)

The overall stock score of 52 reflects significant challenges in financial performance, particularly in profitability and revenue growth. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and oversold indicators suggesting further downside risk. Valuation concerns are highlighted by a negative P/E ratio, although a high dividend yield provides some support for income-focused investors.

Positive Factors

Diversified healthcare revenue streams

A multi-segment business model spanning prescription drugs, OTC products, medical devices and health management services creates durable revenue diversification. Institutional partnerships broaden distribution, reducing dependence on any single product or channel and supporting more stable cash flows over months.

Strong cash generation metrics

Robust operating and free cash flow relative to accounting earnings indicate high cash conversion efficiency. This provides liquidity to fund operations, R&D, and working capital, insulating the company from short-term earnings volatility and allowing strategic responses over a multi-month horizon.

Conservative leverage and strong equity base

Low leverage and a strong equity ratio give the company financial flexibility to withstand continued revenue pressure or invest in growth. This stable capital structure supports durable balance sheet resilience for funding operations, pursuing acquisitions, or absorbing shocks over several quarters.

Negative Factors

Declining revenue trend

A sustained top-line contraction reduces scale economies and puts pressure on fixed-cost absorption, limiting margin recovery. Over 2–6 months this trend can impair reinvestment capacity, strain commercial investments and signal market-share loss versus competitors if not reversed.

Severe EPS deterioration

A dramatic collapse in EPS reflects pronounced earnings stress or one-off losses that materially erode retained earnings and shareholder value. Persistently negative EPS constrains the company’s ability to self-fund growth initiatives and weakens investor and creditor confidence over the medium term.

Compressing margins and falling returns

Material margin compression and a shift to negative ROE indicate weakening core profitability and poor capital efficiency. Without structural cost or revenue improvements, low margins limit reinvestment and reduce resilience to competitive or regulatory pressures across the coming quarters.

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 key streams within its healthcare operations. The company primarily earns money from the sale of pharmaceutical products, which includes both prescription drugs and over-the-counter medications. Additionally, it generates income from medical devices and health management services provided to healthcare institutions and professionals. Partnerships with hospitals, clinics, and healthcare providers enhance its distribution channels, enabling BetterLife to reach a broader market. Furthermore, the company may engage in research and development initiatives that can lead to new product offerings and potential licensing agreements, contributing to its overall revenue growth.

BetterLife Holding Limited Financial Statement Overview

Summary

BetterLife Holding Limited faces challenges in revenue growth and profitability, as evidenced by 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: 0.43
• 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 0.43 is above the 20-day moving average (MA) of 0.43, below the 50-day MA of 0.46, and below the 200-day MA of 0.56, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 49.35 is Neutral, neither overbought nor oversold. The STOCH value of 23.33 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
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6909	52 Neutral	HK$249.00M	-4.97	-1.92%	12.36%	-14.32%	-192.28%
1728	52 Neutral	HK$1.43B	-0.25	―	―	-9.07%	-26.94%
1959	46 Neutral	HK$1.78B	-28.77	-48.30%	―	-41.19%	30.99%
3836	45 Neutral	HK$1.51B	-6.66	-4.42%	3.49%	11.33%	56.94%
1771	45 Neutral	HK$148.80M	-0.68	-8.81%	―	-24.42%	-115.68%

BetterLife Holding Limited Corporate Events

BetterLife CEO and Executive Director Xu Tao to Resign at Start of 2026

BetterLife Holding Limited announced that executive director and chief executive officer Xu Tao will step down from both roles effective 1 January 2026 to focus on other business commitments. The board said Xu has no disagreements with the company, expressed gratitude for his contributions, and is currently searching for a suitable successor for the executive director and CEO posts, with a further announcement to follow once an appointment is made.

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 Sets Out Board Composition and Key Committee Roles

BetterLife Holding Limited has announced the composition of its board of directors, comprising three executive directors—Chairman Mr. Chou Patrick Hsiao-Po, Ms. Sun Jing and Ms. Li Dan—and three independent non-executive directors, Mr. Liu Dengqing, Mr. Lou Sai Tong and Dr. Chu Fumin. The company has also outlined the allocation of roles across its key governance committees, with Mr. Lou serving as chairman of the remuneration committee, Dr. Chu chairing the audit committee, and Mr. Chou chairing both the nomination and strategic development committees, signaling a clarified governance framework intended to support oversight, remuneration policy, and long-term strategic planning.

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.