MediNet Group Ltd. (8161) AI Stock Analysis

• Market Cap: HK$25.38M
• Dividend Yield: N/A
• Average Volume (3M): 13.27K
• Price to Earnings (P/E): 2.8
• Beta (1Y): 0.07
• Revenue Growth: -20.81%
• EPS Growth: N/A
• Country: HK
• Employees: 90
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): >-0.01
• Shares Outstanding: 41,600,000
• 10 Day Avg. Volume: 31,000
• 30 Day Avg. Volume: 13,266
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 2.89
• 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: 53 Neutral
• Price Target: HK$0.50 ▼(-18.03% Downside)

The overall stock score of 53 reflects a mixed outlook. The company's financial performance shows improved profitability but is hindered by declining revenue and high leverage. Technical indicators are neutral, and the stock appears undervalued based on its low P/E ratio. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Profitability Improvement

The shift to a positive net profit margin indicates enhanced profitability, suggesting effective cost management and potential for sustainable earnings growth.

Cash Flow Generation

Improved free cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction.

Gross Profit Margin

A higher gross profit margin reflects better cost management and pricing power, which can support long-term profitability and competitive positioning.

Negative Factors

Revenue Decline

The decline in revenue suggests challenges in market demand or competitive pressures, potentially impacting future growth and market share.

High Leverage

Significant leverage increases financial risk, potentially constraining the company's ability to invest in growth and weather economic downturns.

Operational Cash Flow

Limited operational cash flow relative to net income indicates potential inefficiencies in cash conversion, which could affect liquidity and investment capacity.

MediNet Group Ltd. Business Overview & Revenue Model

Company Description

MediNet Group Limited, an investment holding company, provides medical and dental solutions to corporates, insurance companies, and individuals in Hong Kong and the People's Republic of China. It operates two MediNet Centres that offer a range of medical services, including general practitioner consultation services, immunization services, and men's health medical services, as well as health assessment and body checkup services; six dental clinics, which provide various dental services comprising scaling and polishing, fillings, intra oral X-rays, routine oral examination, oral health education, preventive dental care, and cosmetic dental treatment, as well as teeth restoration, dentures, oral and dental laser implant surgery, orthodontics, veneer, invisalign and implants, and teeth whitening services to plan members and self-paid patients; and a DNA genetic laboratory center. The company also provides various services, including physiotherapy, Chinese medicine practitioner, vaccination, X-ray, and diagnostic laboratory tests; and specialist services that offers professional solutions to various health issues. In addition, it provides online services to sell dental and medical consultation services. The company was founded in 1994 and is headquartered in Causeway Bay, Hong Kong. MediNet Group Limited is a subsidiary of MediNet International Limited.

How the Company Makes Money

MediNet Group Ltd. generates revenue through multiple streams. Primarily, the company earns money by providing telemedicine services, which include virtual consultations and remote patient monitoring, charging healthcare providers and patients for these services. Additionally, MediNet offers medical diagnostic services, such as laboratory testing and imaging, which contribute to its revenue through service fees. The company also capitalizes on its healthcare IT solutions, selling software and technology platforms to medical institutions to improve operational efficiencies. Strategic partnerships with hospitals and healthcare organizations further enhance its revenue potential, allowing for collaborative service offerings and expanding market reach.

MediNet Group Ltd. Financial Statement Overview

Summary

MediNet Group Ltd. shows mixed financial performance. Improved profitability metrics are offset by declining revenue and high leverage, posing significant risks. Cash flow generation is commendable, but operational cash flow needs improvement. Strategic focus on revenue growth and debt management is crucial.

Income Statement

The income statement shows mixed results. Gross profit margin improved significantly to 51.85% in 2025 from 16.66% in 2024, indicating better cost management. However, revenue declined by 8.32% in 2025, reflecting potential challenges in market demand or competition. Net profit margin turned positive at 7.58% in 2025, a notable improvement from negative margins in previous years, suggesting enhanced profitability. Despite these improvements, the overall revenue trend is concerning.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.56 in 2025, indicating significant leverage and potential financial risk. Return on equity improved dramatically to 69.48% in 2025, reflecting strong profitability relative to equity. However, the equity ratio is low, suggesting a heavy reliance on debt financing. The company's financial stability is a concern due to high leverage.

Cash Flow

The cash flow statement shows a positive trend with a 16.31% growth in free cash flow in 2025, indicating improved cash generation. The operating cash flow to net income ratio is low at 0.14, suggesting limited cash flow relative to net income. However, the free cash flow to net income ratio is strong at 94.29%, indicating efficient cash conversion. Overall, cash flow management appears solid, but there is room for improvement in operational cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	116.15M	106.39M	116.25M	110.39M	121.07M	129.48M
Gross Profit	14.71M	55.16M	15.20M	56.68M	65.44M	70.55M
EBITDA	3.76M	17.54M	2.39M	-11.60M	8.06M	20.10M
Net Income	13.44M	8.06M	-8.08M	-24.88M	-6.22M	4.75M
Balance Sheet
Total Assets	42.51M	51.65M	42.03M	42.88M	68.46M	75.89M
Cash, Cash Equivalents and Short-Term Investments	11.16M	13.87M	17.32M	15.57M	15.60M	20.65M
Total Debt	15.10M	18.11M	15.96M	9.82M	12.85M	14.25M
Total Liabilities	31.39M	40.50M	38.84M	31.55M	31.82M	32.84M
Stockholders Equity	11.58M	11.60M	3.63M	11.76M	36.80M	43.05M
Cash Flow
Free Cash Flow	4.33M	4.82M	1.61M	9.65M	6.45M	16.55M
Operating Cash Flow	4.63M	5.11M	4.40M	10.36M	7.22M	18.59M
Investing Cash Flow	49.50K	184.00K	-2.59M	-707.00K	-772.00K	-2.40M
Financing Cash Flow	-10.51M	-8.67M	-11.00K	-9.53M	-11.56M	-11.70M

MediNet Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8161, the sentiment is Positive. The current price of 0.61 is above the 20-day moving average (MA) of 0.61, above the 50-day MA of 0.60, and above the 200-day MA of 0.45, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.80 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 Positive sentiment for HK:8161.

MediNet Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2293	75 Outperform	HK$201.23M	11.42	7.84%	8.00%	-21.50%	-43.25%
8161	53 Neutral	HK$25.38M	2.84	125.77%	―	-20.81%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
8357	51 Neutral	HK$63.02M	-8.64	-10.31%	―	-11.68%	-71.01%
8307	48 Neutral	HK$61.49M	-48.48	-19.93%	―	-2.91%	55.41%
8143	46 Neutral	HK$226.59M	-7.53	-132.60%	―	-30.45%	-734.38%
8437	44 Neutral	HK$21.31M	-0.72	―	―	14.64%	-81.95%