Huakang Biomedical Holdings Company Limited (8622) AI Stock Analysis

• Market Cap: HK$202.69M
• Dividend Yield: N/A
• Average Volume (3M): 577.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: 1.13%
• EPS Growth: 38.41%
• Country: HK
• Employees: 91
• Sector: Healthcare
• Sector Strength: 58
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 500,472,000
• 10 Day Avg. Volume: 408,000
• 30 Day Avg. Volume: 577,600
• PEG Ratio: 0.78
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 139.16
• 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: 52 Neutral
• Price Target: ―

Huakang Biomedical Holdings Company Limited receives an overall score of 52, reflecting mixed financial performance with strong balance sheet stability countered by operational inefficiencies. Technical analysis suggests neutral momentum, while valuation concerns persist due to negative earnings and lack of dividend yield. The primary strengths lie in financial stability, but profitability and cash flow generation require improvement.

Huakang Biomedical Holdings Company Limited Business Overview & Revenue Model

Company Description

Huakang Biomedical Holdings Company Limited, an investment holding company, engages in the research, development, manufacture, marketing, and sale of in-vitro diagnostic (IVD) reagents in the People's Republic of China. It offers male and female fertility IVD, parasite antibody detection, and Epstein-Barr virus antibody detection reagents; auxiliary reproductive supplies and equipment; and healthcare products and supplements under the Nutronic brand to customers, as well as through online and offline platforms and channels. The company sells its products directly to hospitals and medical institutions, as well as to distributors. Huakang Biomedical Holdings Company Limited was founded in 1992 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

Huakang Biomedical Holdings Company Limited generates revenue primarily through the sale of its healthcare products. The company's revenue streams include direct product sales to consumers and partnerships with retailers and distributors. By leveraging its research and development capabilities, the company continuously innovates its product offerings, which helps maintain a competitive edge in the market. Significant partnerships with healthcare providers and retail chains also contribute to its earnings by facilitating wider distribution and increasing market penetration.

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
	EBIT
-5.01M	-6.48M	-2.95M	-3.80M	-8.74M
	EBITDA
-3.41M	-2.55M	188.00K	-852.00K	-8.10M
	Net Income Common Stockholders
-4.16M	-5.78M	-3.08M	-4.22M	-11.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
36.49M	32.94M	33.30M	36.21M	41.94M
	Total Assets
65.22M	65.31M	66.40M	67.06M	72.70M
	Total Debt
4.08M	5.14M	469.00K	1.68M	2.64M
	Net Debt
-27.41M	-27.80M	-32.83M	-34.52M	-39.30M
	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
0.00	-1.55M	475.00K	-4.71M	-6.00M
	Operating Cash Flow
0.00	-48.00K	1.29M	-2.38M	-3.92M
	Investing Cash Flow
0.00	-1.15M	-6.11M	-2.06M	-1.94M
	Financing Cash Flow
0.00	1.02M	2.32M	-1.37M	-1.11M

Huakang Biomedical Holdings Company Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.40
• 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:8622, the sentiment is Neutral. The current price of 0.4 is below the 20-day moving average (MA) of 0.41, above the 50-day MA of 0.37, and above the 200-day MA of 0.26, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.38 is Neutral, neither overbought nor oversold. The STOCH value of 24.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
6826	68 Neutral	HK$12.07B	13.82	7.25%	3.30%	-1.81%	-3.79%
Sector *	54 Neutral	$5.37B	3.26	-45.10%	3.30%	16.81%	0.02%
8622	52 Neutral	HK$202.69M	―	-7.93%	―	1.13%	38.41%
6828	51 Neutral	HK$909.44M	10.81	6.29%	―	-21.48%	-7.50%
8081	41 Neutral	HK$226.87M	―	-30.23%	―	5.79%	-780.00%