BetterLife Holding Limited (6909) AI Stock Analysis

• Market Cap: HK$354.82M
• Dividend Yield: 9.17%
• Average Volume (3M): 51.93K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 1.26
• Revenue Growth: -14.32%
• EPS Growth: -192.28%
• Country: HK
• Employees: 1,450
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Auto - Dealerships
• EPS (TTM): 0.01
• Shares Outstanding: 622,500,000
• 10 Day Avg. Volume: 31,900
• 30 Day Avg. Volume: 51,933
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: -16.67% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: HK$0.50 ▼(-16.67% Downside)

The overall stock score of 53 reflects significant challenges in financial performance, particularly in profitability and revenue growth. Technical analysis indicates bearish momentum, further weighing down the score. The valuation is weak due to negative earnings, although the high dividend yield provides some support. The absence of earnings call data and corporate events limits additional insights.

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 is facing financial headwinds, with declining revenue and profitability margins impacting its income statement. The balance sheet shows moderate leverage but decreasing asset and equity values, while cash flow issues are evident with no positive cash flow generated in recent periods. The company needs to address these concerns to improve financial stability and growth prospects.

Income Statement

The company has experienced fluctuating revenue trends with a decline in total revenue from 2023 to 2024. The gross profit margin in 2024 was 3.19%, indicating a tight margin. The net profit margin turned negative in 2024 at -0.27%, highlighting profitability challenges. EBIT and EBITDA margins also showed a decrease, pointing to operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio in 2024 was 0.26, indicating a relatively low leverage. However, total assets have declined slightly, and stockholders' equity decreased, impacting financial stability. The equity ratio was 53.91%, suggesting a stable proportion of equity financing.

Cash Flow

The cash flow situation is concerning with a zero operating cash flow and free cash flow in 2024, indicating potential liquidity issues. This is exacerbated by a significant decrease from previous years, reflecting challenges in cash management and operational efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.75B	10.73B	10.08B	9.96B	8.53B
Gross Profit	278.72M	578.43M	877.54M	1.18B	863.61M
EBITDA	205.05M	414.35M	572.11M	883.24M	606.80M
Net Income	-24.06M	56.81M	242.84M	456.03M	234.98M
Balance Sheet
Total Assets	4.86B	4.71B	4.84B	4.16B	3.04B
Cash, Cash Equivalents and Short-Term Investments	455.80M	865.74M	713.07M	1.40B	675.83M
Total Debt	674.07M	730.19M	867.97M	405.04M	470.97M
Total Liabilities	2.12B	1.82B	2.01B	1.35B	1.35B
Stockholders Equity	2.62B	2.69B	2.66B	2.59B	1.53B
Cash Flow
Free Cash Flow	423.70M	439.84M	-396.47M	221.85M	660.76M
Operating Cash Flow	529.84M	642.85M	12.85M	405.20M	790.29M
Investing Cash Flow	-368.63M	-172.09M	-625.16M	293.19M	-145.59M
Financing Cash Flow	-570.03M	-314.46M	-28.00M	414.56M	-788.55M

BetterLife Holding Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.60
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6909, the sentiment is Positive. The current price of 0.6 is below the 20-day moving average (MA) of 0.62, below the 50-day MA of 0.64, and below the 200-day MA of 0.69, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 46.69 is Neutral, neither overbought nor oversold. The STOCH value of 15.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$17.92B	12.81	-0.76%	2.98%	1.30%	-14.28%
6909	53 Neutral	HK$354.82M	7.19	-1.92%	9.17%	-14.32%	-192.28%
CZASF	―	$183.88M	―		―	―	―
HA5	―	€239.30M	―	-4.42%	―	―	―
1771	52 Neutral	HK$174.00M	―	-8.81%	―	-24.42%	-115.68%
1959	47 Neutral	HK$129.59M	―	-48.30%	―	-41.19%	30.99%
8126	―	HK$18.10M	―	-1.39%	―	―	―

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.