Huakang Biomedical Holdings Company Limited (8622) AI Stock Analysis

• Market Cap: HK$192.68M
• Dividend Yield: N/A
• Average Volume (3M): 316.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: 1.13%
• EPS Growth: 38.41%
• Country: HK
• Employees: 91
• Sector: Healthcare
• Sector Strength: 38
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 500,472,000
• 10 Day Avg. Volume: 208,000
• 30 Day Avg. Volume: 316,133
• PEG Ratio: -0.88
• Price to Book (P/B): 2.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -50.26
• 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

• Rating: 48 Neutral
• Price Target: HK$0.50 ▲(35.14%Upside)

The overall stock score of 48 is primarily driven by the company's strong balance sheet, which is offset by poor profitability and cash flow challenges. Technical analysis offers a neutral outlook, while the valuation is negatively impacted by a lack of earnings and dividend yield.

Huakang Biomedical Holdings Company Limited Business Overview & Revenue Model

Company Description

Huakang Biomedical Holdings Company Limited (8622) is a healthcare company operating in the biomedical sector. The company is primarily involved in the research, development, and commercialization of biomedical products. Its core services and products include the development of innovative healthcare solutions aimed at improving health outcomes. The company is committed to advancing medical technologies and providing high-quality biomedical products to its clients.

How the Company Makes Money

Huakang Biomedical Holdings Company Limited generates revenue through the sale of its biomedical products and solutions. The company's key revenue streams include the commercialization of proprietary healthcare technologies and products developed through its research and development efforts. It may also engage in strategic partnerships and collaborations with other entities in the healthcare sector to enhance its market reach and product offerings. Additionally, the company could earn income from licensing its technologies and products to other firms. The revenue model is supported by ongoing investment in R&D to ensure a competitive edge in the biomedical market.

Huakang Biomedical Holdings Company Limited Financial Statement Overview

Summary

Huakang Biomedical Holdings Company Limited shows a mixed financial performance. While the balance sheet suggests a stable financial position with low leverage, the income statement and cash flow indicate operational inefficiencies and a struggle to achieve profitability. Improving operational efficiency and cash flow generation are critical to enhance financial performance and shareholder value.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.36M	24.63M	25.33M	26.13M	21.97M
Gross Profit	17.07M	16.09M	16.91M	16.46M	14.72M
EBITDA	-3.41M	-2.55M	188.00K	-852.00K	-8.10M
Net Income	-4.16M	-5.78M	-3.08M	-4.22M	-11.63M
Balance Sheet
Total Assets	65.22M	65.31M	66.40M	67.06M	72.70M
Cash, Cash Equivalents and Short-Term Investments	36.49M	32.94M	33.30M	36.21M	41.94M
Total Debt	4.08M	5.14M	469.00K	1.68M	2.64M
Total Liabilities	11.17M	14.30M	9.88M	9.36M	10.84M
Stockholders Equity	54.05M	51.02M	56.52M	57.70M	61.86M
Cash Flow
Free Cash Flow	-5.05M	-1.55M	475.00K	-4.71M	-6.00M
Operating Cash Flow	-3.06M	-48.00K	1.29M	-2.38M	-3.92M
Investing Cash Flow	-4.42M	-1.15M	-6.11M	-2.06M	-1.94M
Financing Cash Flow	6.30M	1.02M	2.32M	-1.37M	-1.11M

Huakang Biomedical Holdings Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.37
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8622, the sentiment is Positive. The current price of 0.37 is above the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.39, and above the 200-day MA of 0.29, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.68 is Neutral, neither overbought nor oversold. The STOCH value of 60.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Sector *	60 Neutral	HK$16.95B	6.14	-7.34%	3.69%	12.24%	-25.44%
1011	59 Neutral	HK$519.17M	―		―	―	―
0858	50 Neutral	HK$329.82M	1.48	23.02%	―	-12.93%	―
8622	48 Neutral	HK$192.68M	―	-7.93%	―	1.13%	38.41%
1498	45 Neutral	HK$189.57M	―	-26.80%	―	-6.09%	66.59%
1652	45 Neutral	HK$235.27M	―	-40.39%	―	-43.73%	-434.56%
1312	36 Underperform	HK$184.10M	―	-7.42%	―	10.93%	-159.62%