Huakang Biomedical Holdings Company Limited (8622) AI Stock Analysis

• Market Cap: HK$190.18M
• Dividend Yield: N/A
• Average Volume (3M): 2.75M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: 2.54%
• EPS Growth: 33.33%
• Country: HK
• Employees: 91
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): >-0.01
• Shares Outstanding: 500,472,000
• 10 Day Avg. Volume: 2,430,400
• 30 Day Avg. Volume: 2,747,200
• PEG Ratio: 0.43
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 2.68
• P/FCF Ratio: -13.45
• 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: 44 Neutral
• Price Target: HK$0.40 ▼(-4.05% Downside)

The overall stock score is primarily influenced by the company's financial performance and technical analysis. The strong balance sheet is overshadowed by operational inefficiencies and liquidity challenges. Technical indicators suggest bearish momentum, and the negative P/E ratio reflects ongoing financial struggles. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Stable Gross Profit Margin

A stable gross profit margin indicates effective cost management and the ability to maintain pricing power, which is crucial for long-term profitability.

Revenue Growth Potential

While current growth is minimal, the company's focus on innovative medical products positions it well for capturing future market opportunities as healthcare demand increases.

Negative Factors

Negative Cash Flow

Negative cash flow suggests operational inefficiencies, limiting the company's ability to fund growth initiatives and manage debt, potentially impacting long-term sustainability.

Profitability Challenges

Ongoing profitability challenges highlight difficulties in achieving operational efficiency, which could hinder the company's ability to generate shareholder returns over time.

Liquidity Pressures

Liquidity pressures from negative operating cash flow can constrain the company's ability to invest in R&D and expand its market presence, affecting long-term growth prospects.

Huakang Biomedical Holdings Company Limited Business Overview & Revenue Model

Company Description

Huakang Biomedical Holdings Company Limited (8622) is a biotechnology company focused on the research, development, and commercialization of innovative medical products and services. The company primarily operates in the healthcare sector, specializing in diagnostics and therapeutics that cater to various medical needs. Its core product offerings include advanced diagnostic kits, medical devices, and healthcare solutions aimed at enhancing patient outcomes and improving healthcare efficiency.

How the Company Makes Money

Huakang Biomedical generates revenue through the sale of its diagnostic products and medical devices to hospitals, clinics, and healthcare providers. The company utilizes a direct sales model as well as partnerships with distributors to reach a broader market. Key revenue streams include the sale of proprietary diagnostic kits, which are essential for disease detection and monitoring, and medical devices that are used in various clinical applications. Additionally, Huakang may engage in collaborations with other medical institutions or research organizations, potentially providing access to new markets and innovative technologies that can further enhance its revenue generation capabilities.

Huakang Biomedical Holdings Company Limited Financial Statement Overview

Summary

The company shows a stable financial position with a strong equity base and low leverage. However, it faces significant challenges in profitability and cash flow generation, with negative net profit margins and operating cash flow.

Income Statement

The company exhibits consistent revenue but struggles with profitability. Gross profit margin remains stable around 67%, suggesting a strong ability to cover production costs. However, the net profit margin is negative due to significant operating losses, and EBIT and EBITDA margins are also negative, reflecting ongoing challenges in achieving operational profitability. Revenue growth is minimal, indicating stagnation in sales expansion.

Balance Sheet

The balance sheet shows a solid equity base with an equity ratio over 80%, indicating financial stability. Debt-to-equity is low at approximately 0.08, reflecting conservative leverage. However, the negative return on equity due to consecutive net losses highlights concerns over the company's ability to generate returns for shareholders.

Cash Flow

The cash flow statement reveals challenges in generating positive operating cash flow, with negative free cash flow indicating pressure on liquidity. The inability to convert net income into positive cash flow suggests inefficiencies in operations. The company needs to enhance cash generation to support its operational and financing activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.77M	25.36M	24.63M	25.33M	26.13M	21.97M
Gross Profit	17.50M	17.07M	16.09M	16.91M	16.46M	14.72M
EBITDA	-3.62M	-3.41M	-2.55M	188.00K	-852.00K	-8.10M
Net Income	-4.75M	-4.16M	-5.78M	-3.08M	-4.22M	-11.63M
Balance Sheet
Total Assets	66.75M	65.22M	65.31M	66.40M	67.06M	72.70M
Cash, Cash Equivalents and Short-Term Investments	36.73M	36.49M	32.94M	33.30M	36.21M	41.94M
Total Debt	6.42M	4.08M	5.14M	1.88M	1.78M	2.64M
Total Liabilities	14.69M	11.17M	14.30M	9.88M	9.36M	10.84M
Stockholders Equity	52.03M	54.05M	51.02M	56.52M	57.70M	61.86M
Cash Flow
Free Cash Flow	-3.71M	-5.05M	-1.55M	475.00K	-4.71M	-6.00M
Operating Cash Flow	-1.72M	-3.06M	-48.00K	1.29M	-2.38M	-3.92M
Investing Cash Flow	482.00K	-4.42M	-1.15M	-6.11M	-2.06M	-1.94M
Financing Cash Flow	1.27M	6.30M	1.02M	2.32M	-1.37M	-1.11M

Huakang Biomedical Holdings Company Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.42
• 50DMA: Negative
• 100DMA: Negative
• 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:8622, the sentiment is Negative. The current price of 0.42 is below the 20-day moving average (MA) of 0.53, below the 50-day MA of 0.47, and above the 200-day MA of 0.39, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 34.01 is Neutral, neither overbought nor oversold. The STOCH value of 10.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8622.

Huakang Biomedical Holdings Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0858	54 Neutral	HK$229.50M	0.97	-32.04%	―	-11.89%	-290.48%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1652	49 Neutral	HK$580.83M	―	-40.38%	―	-43.46%	-96.48%
1312	46 Neutral	HK$156.20M	-0.43	-41.48%	―	6.55%	-475.22%
8622	44 Neutral	HK$190.18M	―	-8.71%	―	2.54%	33.33%
1498	41 Neutral	HK$213.98M	-4.10	-33.22%	―	-17.32%	55.74%
1011	41 Neutral	HK$485.46M	-2.86	―	―	―	―