NEUSOFT XIKANG HOLDINGS INC. (9686) AI Stock Analysis

• Market Cap: HK$766.11M
• Dividend Yield: N/A
• Average Volume (3M): 71.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 855
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.11
• Shares Outstanding: 841,876,830
• 10 Day Avg. Volume: 8,900
• 30 Day Avg. Volume: 71,050
• PEG Ratio: 0.00
• Price to Book (P/B): -14.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.52
• 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: HK$1.00
• Price Target Upside: 9.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: HK$1.00 ▲(9.89%Upside)

The overall stock score is driven primarily by financial performance challenges, with significant negative impacts from declining revenues and profitability issues. Technical analysis provides a slightly more optimistic outlook with mixed signals, while valuation remains a concern due to negative earnings.

NEUSOFT XIKANG HOLDINGS INC. Business Overview & Revenue Model

Company Description

NEUSOFT XIKANG HOLDINGS INC. (9686) operates in the healthcare technology sector, specializing in providing innovative digital solutions that enhance healthcare delivery and management. The company offers a range of products and services, including healthcare information systems, health management platforms, and digital health tools aimed at improving patient outcomes and operational efficiency in medical institutions.

How the Company Makes Money

NEUSOFT XIKANG HOLDINGS INC. generates revenue primarily through the sale and licensing of its healthcare technology solutions to hospitals, clinics, and other healthcare providers. The company earns income from software licensing fees, subscription services for its health management platforms, and maintenance and support contracts. Additionally, NEUSOFT XIKANG may engage in strategic partnerships with healthcare organizations and technology providers to expand its market reach and enhance its product offerings, contributing to its revenue streams.

NEUSOFT XIKANG HOLDINGS INC. Financial Statement Overview

Summary

The company faces significant profitability and revenue challenges impacting the income statement negatively. However, the balance sheet shows signs of stabilization with improving equity, and cash flows are turning positive, suggesting potential recovery if trends continue.

Income Statement

The company demonstrates a consistent decline in revenue from 2022 to 2024, with a significant decrease in net income, resulting in negative net profit margins. Both EBIT and EBITDA margins are also negative, reflecting ongoing operational challenges and profitability issues.

Balance Sheet

The balance sheet shows improvement with a positive stockholders' equity in 2023 and 2024, although the company still has a high debt-to-equity ratio due to substantial liabilities. The equity ratio remains low, indicating a potential risk in financial stability despite improved equity.

Cash Flow

Cash flow improved in 2024 with positive operating and free cash flows, reversing previous negative trends. The operating cash flow to net income ratio reflects a better alignment between cash flow generation and accounting income, yet the free cash flow growth is volatile.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	501.50M	537.72M	687.41M	614.30M	503.01M
Gross Profit	147.50M	164.61M	168.45M	170.23M	134.11M
EBITDA	-52.06M	-75.65M	-161.41M	-214.71M	-101.65M
Net Income	-83.05M	-154.65M	-241.97M	-296.54M	-196.43M
Balance Sheet
Total Assets	1.26B	1.40B	934.45M	946.85M	954.64M
Cash, Cash Equivalents and Short-Term Investments	797.70M	856.13M	351.76M	364.91M	419.87M
Total Debt	574.47M	603.44M	573.44M	456.28M	446.23M
Total Liabilities	892.31M	964.28M	1.38B	1.21B	1.09B
Stockholders Equity	363.31M	428.14M	-451.98M	-274.55M	-132.99M
Cash Flow
Free Cash Flow	21.56M	-24.42M	-81.17M	-101.77M	-124.13M
Operating Cash Flow	21.56M	-20.16M	-73.83M	-83.38M	-17.30M
Investing Cash Flow	110.45M	-146.60M	-8.45M	-5.47M	-195.16M
Financing Cash Flow	-56.56M	504.77M	64.62M	64.90M	216.29M

NEUSOFT XIKANG HOLDINGS INC. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.91
• 50DMA: Negative
• 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:9686, the sentiment is Neutral. The current price of 0.91 is below the 20-day moving average (MA) of 0.97, below the 50-day MA of 0.93, and above the 200-day MA of 0.81, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.64 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:9686.

NEUSOFT XIKANG HOLDINGS INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2276	75 Outperform	HK$18.74B	35.05	28.81%	0.89%	14.99%	31.70%
Sector *	59 Neutral	HK$15.37B	5.76	-7.44%	4.08%	11.55%	-28.15%
9686	54 Neutral	HK$766.11M	―		―	―	―
2160	47 Neutral	HK$2.27B	―	-2.19%	―	5.32%	89.43%
2170	45 Neutral	HK$760.40M	―	-18.64%	―	41.62%	-22.27%
2158	45 Neutral	HK$5.06B	―	-2.97%	―	11.00%	56.87%
2251	44 Neutral	HK$1.35B	―	-18.19%	―	-24.50%	-93.44%

NEUSOFT XIKANG HOLDINGS INC. Corporate Events

Xikang Cloud Hospital Holdings to Optimize Fund Usage with Cash Management Strategy

Xikang Cloud Hospital Holdings Inc. announced its decision to use idle proceeds from its global offering for cash management by investing in high-security, liquid wealth management products. This strategic move, involving up to US$40 million, is intended to enhance fund usage efficiency and protect shareholder interests without affecting the company’s normal operations or the intended use of proceeds.

Xikang Cloud Hospital Holdings Inc. Successfully Passes All AGM Resolutions

Xikang Cloud Hospital Holdings Inc. held its Annual General Meeting on May 22, 2025, where all proposed resolutions were passed. These included the adoption of financial statements, re-election of directors, re-appointment of auditors, and granting mandates for share issuance and repurchase. The adoption of the ninth amended Memorandum and Articles of Association was also approved, indicating strategic governance updates.

Xikang Cloud Hospital Announces Equity Disposal and Capital Increase

Xikang Cloud Hospital Holdings Inc. announced a connected transaction involving the disposal of equity interests in a target company and a capital increase arrangement. Xikang Healthcare Technology, a subsidiary of Xikang Cloud Hospital, agreed to transfer its equity interest in the target company to Neutech, while Neutech will also participate in a capital increase for the target company. This transaction will result in a dilution of Xikang Cloud Hospital’s shareholding in the target company, and it complies with the reporting requirements under the Listing Rules, though it is exempt from independent shareholders’ approval.

Xikang Cloud Hospital Holdings Inc. Announces Annual General Meeting with Key Resolutions

Xikang Cloud Hospital Holdings Inc. has announced its Annual General Meeting to be held on May 22, 2025, where key resolutions will be discussed, including the adoption of financial statements, re-election of directors, and re-appointment of auditors. The meeting will also consider granting a mandate to the company’s directors to issue additional shares, potentially impacting the company’s capital structure and shareholder value.

Xikang Cloud Hospital Announces Board Changes

Xikang Cloud Hospital Holdings Inc. announced the resignation of Dr. CHEN Lianyong as a non-executive director and member of the Audit and Strategy Committees due to other work arrangements, effective April 18, 2025. The company also appointed Dr. QI Guoxian as a new member of the Audit Committee, reflecting ongoing adjustments in its governance structure.

Xikang Cloud Hospital Holdings Inc. Announces Board Composition

Xikang Cloud Hospital Holdings Inc., formerly known as Neusoft Xikang Holdings Inc., has announced the composition of its board of directors and their respective roles. The board comprises a mix of executive, non-executive, and independent non-executive directors, with Liu Jiren serving as the chairperson. This announcement provides clarity on the governance structure of the company, which is crucial for stakeholders and investors as it outlines the leadership responsible for strategic decisions and oversight.