BetterLife Holding Limited (6909) AI Stock Analysis

• Market Cap: HK$277.01M
• Dividend Yield: 12.36%
• Average Volume (3M): 30.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• 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$0.50 ▲(13.64% Upside)

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

Cash Flow Management

Strong cash flow metrics indicate effective liquidity management, providing financial stability and flexibility for future investments.

Stable Leverage

Improved leverage ratios suggest prudent financial management, reducing risk and enhancing the company's ability to weather economic fluctuations.

High Dividend Yield

A high dividend yield provides a steady income stream for investors, potentially increasing the stock's attractiveness despite earnings challenges.

Negative Factors

Declining Revenue

A negative revenue growth trend indicates potential market challenges and could impact long-term profitability and market position.

Decreasing Margins

Declining margins suggest difficulties in cost management and pricing power, potentially affecting future profitability and competitiveness.

Negative Net Income

Negative net income reflects underlying profitability issues, which may hinder the company's ability to reinvest in growth and innovation.

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: Negative
• Last Price: 0.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 0.44 is below the 20-day moving average (MA) of 0.47, below the 50-day MA of 0.50, and below the 200-day MA of 0.58, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 38.89 is Neutral, neither overbought nor oversold. The STOCH value of 34.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$277.01M	-5.03	-1.92%	12.36%	-14.32%	-192.28%
1728	52 Neutral	HK$1.43B	-0.25	―	―	-9.07%	-26.94%
1959	46 Neutral	HK$1.74B	-29.30	-48.30%	―	-41.19%	30.99%
3836	45 Neutral	HK$1.54B	-6.42	-4.42%	3.59%	11.33%	56.94%
1771	45 Neutral	HK$153.00M	-0.69	-8.81%	―	-24.42%	-115.68%

BetterLife Holding Limited Corporate Events

BetterLife Enters Connected Property Lease Agreement

BetterLife Holding Limited, through its subsidiary BetterLife Tianjin, has entered into a Property Lease Agreement with Tianjin Guomao for properties located in the Tianjin Pilot Free Trade Zone. This transaction is classified as a connected transaction under the Hong Kong Listing Rules due to the involvement of Mr. Chou, an executive director and controlling shareholder of BetterLife, who is associated with the landlord through a family trust. The agreement will result in the recognition of right-of-use assets on BetterLife’s financial statements, indicating an acquisition of assets that does not require independent shareholder approval.