Kindstar Globalgene Technology, Inc. (9960) AI Stock Analysis

• Market Cap: HK$1.29B
• Dividend Yield: 1.92%
• Average Volume (3M): 956.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: -4.09%
• EPS Growth: -1242.31%
• Country: HK
• Employees: 3,011
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): -0.04
• Shares Outstanding: 1,040,923,300
• 10 Day Avg. Volume: 603,200
• 30 Day Avg. Volume: 956,950
• PEG Ratio: 0.08
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 1.13
• P/FCF Ratio: -5.84
• 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: 45 Neutral
• Price Target: HK$1.50 ▲(20.97% Upside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenue and negative cash flows. Technical analysis indicates bearish momentum, further impacting the score. Valuation concerns due to negative earnings also contribute to the cautious outlook.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Conservative Leverage

Low debt levels reduce financial risk and interest obligations, enhancing the company's ability to allocate resources towards strategic initiatives and innovation.

Positive EBITDA

Positive EBITDA indicates that the company generates operating income before non-cash expenses, providing a foundation for potential profitability improvements as operational efficiencies are addressed.

Negative Factors

Declining Revenue

Decreasing revenue trends can signal weakening demand or competitive pressures, potentially impacting long-term growth prospects and market positioning.

Negative Cash Flow

Negative cash flow indicates challenges in generating sufficient cash from operations, which can hinder the company's ability to fund growth, pay down debt, and invest in new opportunities.

Equity Erosion

Erosion of equity suggests that the company may be facing difficulties in preserving its capital base, which could limit its ability to support long-term strategic initiatives and shareholder value.

Kindstar Globalgene Technology, Inc. Business Overview & Revenue Model

Company Description

Kindstar Global (Beijing) Technology, Inc. provides medical esoteric testing services to hospitals in China. Its services include medical research, drug trial, and translational medicine research services for physicians, medical science and technology institutions, specialty and general hospitals, and pharmaceutical companies. The company's lab platforms comprise flow cytometry, cytogenetic, medical genomics, molecular biology, hematopathology, mass spectrum, pathology, clinical immunology, microbiology, and scientific research laboratories. It provides tests in blood, tumor, and genetics; and cardiovascular, cerebrovascular, infectious, and autoimmune diseases, as well as in internal medicine, surgery, gynecology, pediatrics, and other specialties. The company was founded in 2003 and is headquartered in in Wuhan, China.

How the Company Makes Money

Kindstar Globalgene Technology generates revenue primarily through its genetic testing services, which clients pay for on a fee-for-service basis. Key revenue streams include the provision of NIPT services to expectant parents, cancer genomic profiling for patients seeking personalized treatment options, and various other genetic tests offered to healthcare providers. The company also engages in partnerships with hospitals, clinics, and research institutions to expand its service offerings and market reach. Additionally, it may earn revenue through collaborations with pharmaceutical companies for drug development and clinical trials, enhancing its financial performance in the burgeoning field of precision medicine.

Kindstar Globalgene Technology, Inc. Financial Statement Overview

Summary

Kindstar Globalgene Technology, Inc. faces mixed financial health. The income statement shows declining revenue and negative margins, while the cash flow is negative, indicating cash generation issues. The balance sheet remains stable with low leverage, but caution is advised due to equity erosion.

Income Statement

The income statement reveals fluctuating revenue, with a noticeable decline of 4.1% from 2022 to 2023. Despite a positive EBITDA in 2023, the EBIT and net income margins remain negative, indicating ongoing operational inefficiencies. The gross profit margin has also decreased from 43.5% in 2022 to 45.4% in 2023, reflecting pressure on profitability. These factors contribute to a moderate income statement score.

Balance Sheet

The balance sheet shows strong equity levels, with an equity ratio of approximately 73.8% in 2023. The debt-to-equity ratio is low at 0.07 in 2023, suggesting conservative leverage usage. However, the decrease in stockholders' equity from 2022 to 2023 indicates potential challenges in maintaining capital strength. Overall, the balance sheet remains relatively stable but signals caution on equity erosion.

Cash Flow

Cash flow analysis highlights significant challenges, with operating cash flow turning negative in 2023 and free cash flow also remaining negative. This indicates cash generation issues, compounded by zero capital expenditure reporting, which may impact future growth. The free cash flow to net income ratio is not calculable due to negative net income. These factors result in a lower cash flow score.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	911.15M	927.57M	967.26M	1.39B	930.67M	891.39M
Gross Profit	410.30M	439.56M	451.13M	603.05M	485.77M	460.98M
EBITDA	-139.49M	-117.24M	126.38M	150.72M	-1.39B	-909.23M
Net Income	-102.56M	-54.59M	41.29M	75.46M	-1.45B	-974.02M
Balance Sheet
Total Assets	3.90B	3.77B	3.67B	3.73B	3.19B	1.58B
Cash, Cash Equivalents and Short-Term Investments	1.61B	1.66B	2.03B	2.00B	2.15B	956.29M
Total Debt	471.06M	398.36M	194.29M	199.86M	18.19M	85.39M
Total Liabilities	1.05B	950.51M	774.23M	871.62M	464.15M	3.41B
Stockholders Equity	2.80B	2.78B	2.87B	2.83B	2.72B	-1.84B
Cash Flow
Free Cash Flow	-69.26M	-179.57M	-189.65M	-102.90M	-220.23M	46.68M
Operating Cash Flow	-7.64M	-44.12M	-14.78M	21.41M	68.03M	73.46M
Investing Cash Flow	61.44M	-1.21B	854.92M	-1.35B	-666.06M	-121.96M
Financing Cash Flow	67.07M	144.63M	-82.83M	97.64M	1.59B	851.92M

Kindstar Globalgene Technology, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9960, the sentiment is Negative. The current price of 1.24 is below the 20-day moving average (MA) of 1.24, below the 50-day MA of 1.31, and below the 200-day MA of 1.37, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 39.72 is Neutral, neither overbought nor oversold. The STOCH value of 79.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9960.

Kindstar Globalgene Technology, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3689	71 Outperform	HK$652.07M	7.90	5.33%	8.21%	0.47%	50.46%
1526	66 Neutral	HK$1.43B	4.93	20.47%	5.00%	-3.56%	-17.45%
3869	56 Neutral	HK$829.16M	5.70	30.40%	―	2.30%	―
1518	54 Neutral	HK$341.67M	-7.31	-8.40%	3.16%	-21.31%	-149.92%
3886	52 Neutral	HK$1.73B	-11.79	-4.66%	0.47%	-0.55%	45.36%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
9960	45 Neutral	HK$1.29B	-10.19	-3.59%	1.92%	-4.09%	-1242.31%

Kindstar Globalgene Technology, Inc. Corporate Events

Kindstar Globalgene Expands Stake in Huaxi Kindstar with Strategic Acquisition

Kindstar Globalgene Technology, Inc. has announced that its subsidiary, Wuhan Kindstar, has successfully acquired a 40% equity interest in Huaxi Kindstar from Huaxi Health Technology for RMB12,396,000. This acquisition, which was completed through a public tender, is considered a connected transaction under the Hong Kong Stock Exchange’s listing rules but is exempt from certain requirements due to its size. The acquisition is expected to strengthen Kindstar’s position in the market by expanding its stake in Huaxi Kindstar, potentially enhancing its operational capabilities and market influence.