NEUSOFT XIKANG HOLDINGS INC. (9686) AI Stock Analysis

• Market Cap: HK$799.78M
• Dividend Yield: N/A
• Average Volume (3M): 24.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.41
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 855
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.11
• Shares Outstanding: 841,876,830
• 10 Day Avg. Volume: 36,750
• 30 Day Avg. Volume: 24,483
• PEG Ratio: -0.35
• Price to Book (P/B): 1.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.42
• 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: 5.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: HK$1.00 ▲(5.26%Upside)

The overall score reflects significant financial challenges due to declining revenue and ongoing losses, despite some cash flow improvements. Technical analysis shows mixed signals with short-term upward trends but potential bearish momentum. Valuation remains weak due to negative earnings and lack of dividends.

NEUSOFT XIKANG HOLDINGS INC. Business Overview & Revenue Model

Company Description

Neusoft Xikang Holdings Inc. (9686) is a leading company in the healthcare technology sector, focusing on the development and provision of innovative digital health solutions. The company offers a wide range of products and services designed to enhance healthcare delivery and patient outcomes, including cloud-based healthcare platforms, medical devices, and health management services. Neusoft Xikang leverages cutting-edge technology to drive efficiency and effectiveness in healthcare systems.

How the Company Makes Money

Neusoft Xikang Holdings Inc. generates revenue through a diversified business model centered around its digital health solutions. The company earns money from the sale and licensing of its proprietary healthcare platforms and software solutions to hospitals, clinics, and other healthcare providers. Additionally, revenue is generated from the sale of medical devices and equipment. Neusoft Xikang also offers health management and consulting services, which provide recurring income streams. The company has established strategic partnerships with healthcare institutions and technology firms, further enhancing its market reach and revenue potential. Key factors contributing to its earnings include its ability to innovate in digital health and its strong presence in the rapidly growing healthcare technology market.

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: Positive
• Last Price: 0.95
• 50DMA: Positive
• 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:9686, the sentiment is Positive. The current price of 0.95 is above the 20-day moving average (MA) of 0.92, above the 50-day MA of 0.94, and above the 200-day MA of 0.83, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.93 is Neutral, neither overbought nor oversold. The STOCH value of 55.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$20.97B	39.23	28.81%	0.71%	14.99%	31.70%
Sector *	61 Neutral	HK$17.74B	5.78	-7.44%	3.51%	11.55%	-28.15%
2251	53 Neutral	HK$1.45B	―	-18.19%	―	-24.50%	-93.44%
2170	53 Neutral	HK$790.49M	―	-18.64%	―	41.62%	-22.27%
2160	50 Neutral	HK$3.26B	―	-2.19%	―	5.32%	89.43%
2158	45 Neutral	HK$5.95B	―	-2.97%	―	11.00%	56.87%
9686	44 Neutral	HK$799.78M	―		―	―	―

NEUSOFT XIKANG HOLDINGS INC. Corporate Events

Xikang Cloud Hospital Grants Share Options to Boost Stakeholder Alignment

Xikang Cloud Hospital Holdings Inc. announced the grant of 28,990,000 share options to 236 eligible participants under its Post-IPO Share Option Scheme. The options, which have an exercise price of HK$0.904 per share, are subject to a vesting schedule over three years and performance targets based on financial and business-related indicators. The scheme includes a clawback mechanism for violations of laws or company rules, ensuring alignment with company goals and stakeholder interests.

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.