BetterLife Holding Limited (6909) AI Stock Analysis

• Market Cap: HK$448.20M
• Dividend Yield: 3.1%
• Average Volume (3M): 107.39K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 1.32
• Revenue Growth: -20.06%
• EPS Growth: -141.38%
• Country: HK
• Employees: 1,450
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Auto - Dealerships
• EPS (TTM): -0.04
• Shares Outstanding: 622,500,000
• 10 Day Avg. Volume: 188,100
• 30 Day Avg. Volume: 107,394
• PEG Ratio: 0.06
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.19
• 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: -29.58% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: HK$0.50 ▼(-29.58%Downside)

The overall stock score of 48 reflects significant financial challenges, including declining revenue and negative profitability margins. The technical analysis shows short-term bullish momentum, but long-term resistance is present. Valuation concerns arise from a negative P/E ratio, although a moderate dividend yield offers some positive aspect. Earnings call and corporate events are not factored in due to lack of data.

BetterLife Holding Limited Business Overview & Revenue Model

Company Description

BetterLife Holding Limited (6909) is a company engaged in the automotive dealership and service industry. It operates primarily in the sale of new and used cars, as well as providing a range of after-sales services including maintenance, repairs, and parts distribution. The company represents several major automotive brands and is committed to delivering comprehensive automotive solutions to its customers.

How the Company Makes Money

BetterLife Holding Limited generates revenue through the sale of new and used vehicles, which is a significant portion of its income. Additionally, the company earns money from after-sales services such as maintenance and repair services, which include selling spare parts and accessories. The company's dealership network and partnerships with major automotive brands enhance its market presence and revenue potential. Furthermore, financing and insurance services offered to customers as part of the vehicle purchasing process also contribute to its revenue streams.

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: 0.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 0.71 is above the 20-day moving average (MA) of 0.59, above the 50-day MA of 0.54, and below the 200-day MA of 0.72, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 75.81 is Negative, neither overbought nor oversold. The STOCH value of 96.67 is Negative, 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 *	57 Neutral	HK$25.53B	4.08	-2.03%	6.14%	-0.31%	-67.64%
1728	52 Neutral	HK$1.43B	―		―	-15.73%	-73.42%
6909	48 Neutral	HK$448.20M	7.19	-0.91%	3.10%	-20.06%	-141.38%
3836	47 Neutral	HK$1.01B	―	-5.36%	5.36%	-7.58%	-21.25%
1771	46 Neutral	HK$168.00M	―	-9.04%	―	-23.03%	-1842.08%
1959	38 Underperform	HK$109.26M	―	-61.86%	―	-24.60%	-67.92%

BetterLife Holding Limited Corporate Events

BetterLife Holding Limited’s AGM Resolutions Unanimously Approved

BetterLife Holding Limited held its Annual General Meeting on May 30, 2025, where all proposed resolutions were unanimously approved by shareholders. These resolutions included the adoption of the company’s financial statements, the declaration of a final dividend, the re-election of directors, and the re-appointment of the auditor. The unanimous approval reflects strong shareholder support and may positively impact the company’s governance and financial strategies.

BetterLife Holding Limited Announces Final Dividend for 2024

BetterLife Holding Limited has announced a cash dividend for its shareholders, with a final dividend of RMB 0.02 per share for the financial year ending December 31, 2024. The dividend will be paid in Hong Kong dollars at a rate of HKD 0.022 per share, with an exchange rate of RMB 1 to HKD 1.0912. The ex-dividend date is set for June 3, 2025, and the payment date is June 30, 2025. This announcement reflects the company’s commitment to returning value to its shareholders and may impact investor sentiment positively.

BetterLife Holding Expands with New Tianjin 4S Dealership Lease

BetterLife Holding Limited has announced a new lease agreement for a 4S dealership store in Tianjin, China. The agreement involves Tianjin BetterLife, a wholly-owned subsidiary, leasing the Tianbao 4S Dealership Store from Tianjin Tianbao. This transaction is part of a series of similar agreements and is classified as a discloseable transaction under Hong Kong’s Listing Rules. The lease term is set for eight and a half years, with an annual rent of RMB2.46 million. This expansion is expected to strengthen BetterLife’s presence in the automotive dealership sector, particularly in the Tianjin region, and aligns with their strategic growth plans.

BetterLife Holding Limited Announces Discloseable Transaction with Beijing Yanbao

BetterLife Holding Limited, through its indirect wholly-owned subsidiary Beijing BetterLife Group, has entered into a Yanbao Assets Transfer Agreement with Beijing Yanbao. This agreement involves the purchase of machinery and office equipment from the Yanbao 4S Dealership Store. The transaction is classified as a discloseable transaction under the Hong Kong Stock Exchange Listing Rules, requiring reporting and announcement due to its size. The agreement’s effectiveness is contingent on the fulfillment of certain conditions, including the accuracy of representations and the absence of legal proceedings that could impede the transaction.

BetterLife Holding Limited Announces Key Asset Acquisition and Lease Agreements

BetterLife Holding Limited announced two significant agreements on April 24, 2025. The company, through its subsidiary Beijing BetterLife Group, entered into an Assets Transfer Agreement with Beijing Chendebao to acquire machinery, equipment, and other assets related to the Chendebao 4S Dealership Store. Additionally, the company signed a Yanbao Lease Agreement with Beijing Yanbao for the tenancy of the Yanbao 4S Dealership Store. These transactions are considered discloseable under the Listing Rules, as their aggregated transaction value exceeds 5% but is less than 25%, necessitating reporting and announcement requirements.