NEUSOFT XIKANG HOLDINGS INC. (9686) AI Stock Analysis

• Market Cap: HK$757.69M
• Dividend Yield: N/A
• Average Volume (3M): 60.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 855
• Sector: Healthcare
• Sector Strength: 45
• Industry: Software - Services
• EPS (TTM): -0.06
• Shares Outstanding: 841,876,830
• 10 Day Avg. Volume: 65,850
• 30 Day Avg. Volume: 60,916
• PEG Ratio: 0.21
• Price to Book (P/B): 2.72
• Price to Sales (P/S): 1.97
• P/FCF Ratio: 45.83
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: HK$1.00 ▲(7.53% Upside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenues and negative profit margins. Technical analysis suggests a bearish trend, while valuation reflects ongoing financial struggles. Improvements in free cash flow provide a slight positive outlook.

Positive Factors

Cash Flow Improvement

Positive operating cash flow indicates improved cash generation, enhancing financial flexibility and supporting long-term operations.

Equity Position Improvement

Improved equity position strengthens the balance sheet, providing a more stable financial foundation for future growth.

Diversified Revenue Streams

Diversified revenue streams reduce reliance on a single income source, enhancing resilience against market fluctuations.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market demand or competitive positioning, which could hinder long-term growth.

Weak Profit Margins

Weak profit margins reflect operational inefficiencies and pricing pressures, impacting profitability and long-term sustainability.

High Debt Levels

High debt levels can strain cash flow and limit financial flexibility, posing risks to long-term financial health.

NEUSOFT XIKANG HOLDINGS INC. Business Overview & Revenue Model

Company Description

Xikang Cloud Hospital Holdings, Inc. engages in the development of a city-specific cloud hospital platform. It operates through the following segments: Cloud Hospital Platform Services, Internet Medical Services, Health Management Services, and Smart Healthcare Products. The Cloud Hospital Platform Services segment offers technology solutions to local governments, medical institutions, and insurers. The Internet Medical Services segment includes online hospital, remote medical, smart family doctor, and internet home care services. The Health Management Services segment consists of comprehensive health management and chronic disease management services. The Smart Healthcare Products segment sells smart healthcare products to local governments, primary medical institutions, corporations, and individuals. The company was founded on May 12, 2011 and is headquartered in Shanghai, China.

How the Company Makes Money

NEUSOFT XIKANG generates revenue through multiple streams, primarily from the sale of healthcare information technology solutions and software services. Key revenue sources include licensing fees for software products, maintenance and support services, and consulting services related to system integration and implementation. Additionally, the company earns income from partnerships with healthcare institutions and government projects, which often involve large-scale system deployments and upgrades. The growing demand for digital healthcare solutions further contributes to the company's earnings, as more healthcare providers seek to improve operational efficiencies and patient care through technology.

NEUSOFT XIKANG HOLDINGS INC. Financial Statement Overview

Summary

The company is facing financial challenges with declining revenues and negative profit margins. High leverage and negative return on equity indicate financial instability, although free cash flow growth suggests some operational efficiencies.

Income Statement

The company has experienced declining revenue over the past periods, with a negative revenue growth rate of -6.1% in the TTM. Gross profit margin remains moderate at 28.8%, but net profit margin is negative, indicating ongoing losses. EBIT and EBITDA margins are also negative, reflecting operational challenges.

Balance Sheet

The company has a high debt-to-equity ratio of 1.62, indicating significant leverage. Return on equity is negative, suggesting that the company is not generating profits from its equity base. The equity ratio is low, pointing to potential financial instability.

Cash Flow

Free cash flow has shown growth of 25.3% in the TTM, which is a positive sign. The operating cash flow to net income ratio is low, but the free cash flow to net income ratio is above 1, indicating that the company is generating cash despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	500.89M	501.50M	537.72M	687.41M	614.30M	503.01M
Gross Profit	144.25M	147.50M	164.61M	168.45M	170.23M	134.11M
EBITDA	-45.88M	-52.06M	-75.65M	-161.41M	-214.71M	-101.65M
Net Income	-72.38M	-83.05M	-154.65M	-241.97M	-296.54M	-196.43M
Balance Sheet
Total Assets	1.11B	1.26B	1.40B	934.45M	946.85M	954.64M
Cash, Cash Equivalents and Short-Term Investments	703.42M	797.70M	822.67M	351.76M	364.91M	419.87M
Total Debt	520.84M	574.47M	603.44M	573.44M	456.28M	446.23M
Total Liabilities	785.76M	892.31M	964.28M	1.38B	1.21B	1.09B
Stockholders Equity	322.38M	363.31M	428.14M	-451.98M	-274.55M	-132.99M
Cash Flow
Free Cash Flow	36.20M	21.56M	-24.42M	-81.17M	-101.77M	-124.13M
Operating Cash Flow	35.91M	21.56M	-20.16M	-73.83M	-83.38M	-17.30M
Investing Cash Flow	-30.55M	110.45M	-146.60M	-8.45M	-5.47M	-195.16M
Financing Cash Flow	-93.62M	-56.56M	504.77M	64.62M	64.90M	216.29M

NEUSOFT XIKANG HOLDINGS INC. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.93
• 50DMA: Negative
• 100DMA: Negative
• 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 0.93 is below the 20-day moving average (MA) of 0.95, below the 50-day MA of 0.95, and above the 200-day MA of 0.92, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 44.78 is Neutral, neither overbought nor oversold. The STOCH value of 33.88 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	72 Outperform	HK$24.24B	41.94	24.57%	0.67%	13.58%	24.59%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
9686	48 Neutral	HK$757.69M	-10.03	-20.43%	―	―	―
2170	44 Neutral	HK$588.08M	-2.23	-20.60%	―	11.43%	4.88%
2160	43 Neutral	HK$2.68B	513.64	0.22%	―	-4.38%	―
2251	40 Neutral	HK$1.12B	-6.07	-12.97%	―	-32.17%	-1.20%
2158	39 Underperform	HK$4.58B	-54.80	-2.23%	―	-4.99%	47.18%

NEUSOFT XIKANG HOLDINGS INC. Corporate Events

Xikang Cloud Hospital Holdings Reports Improved Losses Amid Revenue Dip

Xikang Cloud Hospital Holdings Inc. announced its interim results for the first half of 2025, reporting a slight revenue decrease of 0.3% compared to the same period in 2024, with a total revenue of RMB178.6 million. Despite the revenue dip, the company reduced its net loss by 17.4% to RMB50.0 million, attributed to business optimization and resource allocation improvements. The company’s unique business model, which involves strategic collaboration with local governments, aims to enhance the regional digital healthcare ecosystem through AI-driven innovations and scalable cloud hospital platforms.

The most recent analyst rating on (HK:9686) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on NEUSOFT XIKANG HOLDINGS INC. stock, see the HK:9686 Stock Forecast page.

Xikang Cloud Hospital Holdings to Discuss Interim Results and Dividend

Xikang Cloud Hospital Holdings Inc. has announced a board meeting scheduled for August 27, 2025, to discuss and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the recommendation of an interim dividend, indicating a potential financial distribution to shareholders, which could impact investor sentiment and the company’s market positioning.