Honliv Healthcare Management Group Co Ltd (9906) AI Stock Analysis

• Market Cap: HK$990.00M
• Dividend Yield: N/A
• Average Volume (3M): 600.00
• Price to Earnings (P/E): 80.1
• Beta (1Y): 0.14
• Revenue Growth: -13.22%
• EPS Growth: -69.35%
• Country: HK
• Employees: 1,955
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): >-0.01
• Shares Outstanding: 600,000,000
• 10 Day Avg. Volume: 800
• 30 Day Avg. Volume: 600
• PEG Ratio: -2.54
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 1.40
• P/FCF Ratio: 34.40
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: HK$1.50 ▼(-14.29% Downside)

The overall stock score of 57 reflects a stable financial performance with a strong balance sheet and cash flow generation. However, the high P/E ratio suggests overvaluation, and the technical analysis indicates potential short-term overbought conditions. These factors contribute to a cautious outlook despite the company's solid financial health.

Positive Factors

Financial Stability

A strong equity position and low debt-to-equity ratio indicate financial stability, providing a solid foundation for future growth and resilience against economic fluctuations.

Cash Flow Recovery

The recovery in free cash flow from negative to positive reflects improved cash generation capabilities, enhancing the company's ability to fund operations and invest in growth opportunities.

Operational Efficiency

Stable EBIT and EBITDA margins suggest effective cost management and operational efficiency, which are crucial for sustaining profitability in the long term.

Negative Factors

Profit Margin Pressure

Declining gross profit margins indicate rising cost pressures, which could challenge the company's ability to maintain profitability unless addressed through cost control or pricing strategies.

Declining Shareholder Returns

A decline in return on equity suggests reduced efficiency in generating profits from shareholders' investments, potentially impacting investor confidence and future capital raising.

Revenue Growth Challenges

Moderate revenue growth may indicate challenges in expanding market share or service offerings, necessitating strategic initiatives to drive higher growth rates in a competitive healthcare market.

Honliv Healthcare Management Group Co Ltd Business Overview & Revenue Model

Company Description

Honliv Healthcare Management Group Company Limited owns and operates a general hospital in Mainland China. The company provides medical and pharmaceutical services, and hospital management services. It also operates as the pharmaceutical wholesaler. As of December 31, 2021, the company operated and managed Henan Honliv Hospital with 1,500 beds in operation located in Henan Province. The company was founded in 2004 and is headquartered in Changyuan, China. Honliv Healthcare Management Group Company Limited is a subsidiary of Sunny Rock Capital Limited.

How the Company Makes Money

Honliv Healthcare Management Group Co Ltd generates revenue through multiple streams. Primarily, the company earns money by providing management services to hospitals and healthcare facilities, which includes operational oversight, strategic planning, and consulting services. Additionally, Honliv earns income from the sale of medical equipment and technology, often collaborating with manufacturers to distribute advanced healthcare solutions. Significant partnerships with healthcare institutions and government bodies further bolster its revenue, allowing the company to expand its service offerings and tap into new markets. Furthermore, Honliv may also benefit from performance-based contracts that reward efficiency and quality improvements in healthcare service delivery.

Honliv Healthcare Management Group Co Ltd Financial Statement Overview

Summary

Honliv Healthcare demonstrates stability through solid financial health, characterized by a strong balance sheet with low leverage and steady cash flow generation. While revenue growth is moderate, the company faces pressure on profit margins, indicating potential challenges in cost management. Overall, the financial position is robust, providing a firm foundation for future operations despite the need to enhance profitability metrics.

Income Statement

The company has shown steady revenue growth, with the latest annual growth rate at 1.08%. However, gross profit margin has decreased from 19.05% to 16.48% over the past year, indicating potential cost pressures. Net profit margin slightly decreased from 5.04% to 4.05%, suggesting some challenges in maintaining profitability. The EBIT and EBITDA margins have remained relatively stable, which is a positive sign for operational efficiency.

Balance Sheet

The balance sheet reveals a solid equity position with an equity ratio of 58.83% as of the latest report. The debt-to-equity ratio is low at 0.31, indicating low leverage and financial stability. However, the return on equity has decreased from 7.07% to 5.44% over the past year, reflecting a potential decline in shareholder returns.

Cash Flow

The company has demonstrated a strong recovery in free cash flow, growing from a negative position in earlier years to a positive $31.19 million in the latest year. The operating cash flow to net income ratio is robust at 2.68, illustrating effective cash generation relative to net income. However, the free cash flow to net income ratio has room for improvement at 1.00, indicating that not all profits are being converted into free cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	700.37M	768.73M	760.53M	727.79M	606.84M	524.04M
Gross Profit	100.87M	126.69M	144.84M	138.40M	135.31M	137.59M
EBITDA	91.33M	125.80M	119.31M	127.13M	98.20M	79.43M
Net Income	10.44M	31.15M	38.31M	48.95M	36.62M	21.84M
Balance Sheet
Total Assets	894.73M	974.00M	968.71M	935.04M	961.71M	972.46M
Cash, Cash Equivalents and Short-Term Investments	286.78M	258.50M	239.75M	255.24M	263.61M	302.48M
Total Debt	136.08M	176.04M	180.76M	143.12M	188.48M	250.05M
Total Liabilities	333.92M	395.08M	421.26M	380.37M	395.08M	442.85M
Stockholders Equity	554.90M	573.00M	541.85M	549.47M	561.83M	525.21M
Cash Flow
Free Cash Flow	78.49M	31.19M	2.01M	98.66M	40.08M	-6.24M
Operating Cash Flow	106.66M	83.34M	91.56M	118.47M	91.44M	74.61M
Investing Cash Flow	-19.39M	-51.38M	-88.76M	-19.16M	-50.46M	-80.06M
Financing Cash Flow	-60.68M	-13.30M	-19.12M	-117.85M	-76.87M	215.16M

Honliv Healthcare Management Group Co Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.75
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9906, the sentiment is Neutral. The current price of 1.75 is above the 20-day moving average (MA) of 1.65, above the 50-day MA of 1.71, and above the 200-day MA of 1.57, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 16.14 is Positive, neither overbought nor oversold. The STOCH value of 20.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:9906.

Honliv Healthcare Management Group Co Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3689	71 Outperform	HK$568.47M	6.89	5.33%	9.14%	0.47%	50.46%
1526	66 Neutral	HK$1.37B	4.71	20.47%	4.37%	-3.56%	-17.45%
9906	57 Neutral	HK$990.00M	80.10	1.87%	―	-13.22%	-69.35%
3869	56 Neutral	HK$710.32M	4.89	30.40%	―	2.30%	―
1419	55 Neutral	HK$307.44M	11.67	3.40%	3.75%	9.07%	8.95%
6639	52 Neutral	HK$1.03B	39.67	1.27%	―	-4.30%	13.83%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%