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BetterLife Holding Limited (HK:6909)
:6909
Hong Kong Market

BetterLife Holding Limited (6909) AI Stock Analysis

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HK

BetterLife Holding Limited

(6909)

Rating:48Neutral
Price Target:
HK$0.50
▼(-24.24%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 (6909) vs. iShares MSCI Hong Kong ETF (EWH)

BetterLife Holding Limited Business Overview & Revenue Model

Company DescriptionBetterLife 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 MoneyBetterLife 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.
Income Statement
45
Neutral
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
60
Neutral
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
30
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue8.75B10.73B10.08B9.96B8.53B
Gross Profit278.72M578.43M877.54M1.18B863.61M
EBITDA205.05M414.35M572.11M883.24M606.80M
Net Income-24.06M56.81M242.84M456.03M234.98M
Balance Sheet
Total Assets4.86B4.71B4.84B4.16B3.04B
Cash, Cash Equivalents and Short-Term Investments455.80M865.74M713.07M1.40B675.83M
Total Debt674.07M730.19M867.97M405.04M470.97M
Total Liabilities2.12B1.82B2.01B1.35B1.35B
Stockholders Equity2.62B2.69B2.66B2.59B1.53B
Cash Flow
Free Cash Flow423.70M439.84M-396.47M221.85M660.76M
Operating Cash Flow529.84M642.85M12.85M405.20M790.29M
Investing Cash Flow-368.63M-172.09M-625.16M293.19M-145.59M
Financing Cash Flow-570.03M-314.46M-28.00M414.56M-788.55M

BetterLife Holding Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.66
Price Trends
50DMA
0.54
Positive
100DMA
0.62
Positive
200DMA
0.71
Negative
Market Momentum
MACD
0.04
Negative
RSI
69.58
Neutral
STOCH
87.53
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 0.66 is above the 20-day moving average (MA) of 0.50, above the 50-day MA of 0.54, and below the 200-day MA of 0.71, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 69.58 is Neutral, neither overbought nor oversold. The STOCH value of 87.53 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$16.62B10.98-6.98%2.96%1.73%-24.23%
48
Neutral
HK$410.85M7.19-0.91%3.33%-20.06%-141.38%
$182.46M
DEHA5
€103.18M-5.36%6.51%
46
Neutral
HK$174.00M-9.04%-23.03%-1842.08%
38
Underperform
HK$111.30M-61.86%-24.60%-67.92%
HK$18.10M-1.39%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6909
BetterLife Holding Limited
0.66
0.00
0.00%
CZASF
China Zhengtong Auto Services Holdings
0.01
-0.01
-50.00%
DE:HA5
China Harmony Auto Holding Limited
0.07
0.02
40.00%
HK:1771
Sunfonda Group Holdings Ltd.
0.29
-0.30
-50.85%
HK:1959
Centenary United Holdings Limited
0.21
0.05
31.25%
HK:8126
G.A. Holdings Limited
0.04
-0.08
-66.67%

BetterLife Holding Limited Corporate Events

BetterLife Holding Limited’s AGM Resolutions Unanimously Approved
May 30, 2025

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
May 30, 2025

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
May 26, 2025

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
Apr 29, 2025

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
Apr 24, 2025

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.

BetterLife Holding Limited Announces Annual General Meeting and Key Resolutions
Apr 17, 2025

BetterLife Holding Limited has announced its upcoming annual general meeting, which will be held in Beijing on May 30, 2025. The meeting’s agenda includes the adoption of the company’s audited financial statements for the year ending December 31, 2024, the declaration of a final dividend of RMB2.0 cents per share, the re-election of several directors, the re-appointment of SHINEWING (HK) CPA Limited as the company’s auditor, and the authorization for the board to manage directors’ remuneration. Additionally, the company seeks approval to allow directors to allot and issue additional shares, subject to certain conditions, which could influence the company’s capital structure and shareholder value.

BetterLife Holding Limited Announces Share Award Scheme
Apr 15, 2025

BetterLife Holding Limited has announced the grant of 14,962,000 awarded shares to 12 selected employees under its 2024 Share Award Scheme. This move, which includes significant allocations to executive directors, is aimed at aligning employee incentives with company performance, potentially enhancing the company’s operational efficiency and market positioning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 05, 2025