Kangji Medical Holdings Limited (9997) AI Stock Analysis

• Market Cap: €10.68B
• Dividend Yield: 2.84%
• Average Volume (3M): 2.25M
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.53
• Revenue Growth: 6.51%
• EPS Growth: 4.85%
• Country: HK
• Employees: 1,007
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.25
• Shares Outstanding: 1,207,994,000
• 10 Day Avg. Volume: 2,907,605
• 30 Day Avg. Volume: 2,251,213
• PEG Ratio: 0.85
• Price to Book (P/B): 2.63
• Price to Sales (P/S): 6.86
• P/FCF Ratio: 13.72
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 83 Outperform
• Price Target: HK$10.00 ▲(8.70% Upside)

Kangji Medical Holdings Limited scores highly due to its robust financial performance, characterized by consistent growth and strong cash generation. The stock's valuation is attractive, with a moderate P/E ratio and a very high dividend yield. Technical analysis indicates a bullish trend, though caution is advised due to overbought conditions. Overall, the company's strong fundamentals and attractive valuation make it a compelling investment opportunity.

Kangji Medical Holdings Limited Business Overview & Revenue Model

Company Description

Kangji Medical Holdings Limited, through its subsidiaries, designs, develops, manufactures, and sale of minimally invasive surgical instruments and accessories in China. It offers disposable trocars, polymer ligation clips, disposable electrocoagulation forceps, ultrasonic scalpels, and other types of disposable hand-held instruments; and reusable trocars, reusable forceps, and other reusable products. The company's products are used in obstetrics and gynecology, general surgery, urology, and thoracic surgery specialties. It primarily sells products to a network of distributors. The company was founded in 2004 and is headquartered in Hangzhou, China.

How the Company Makes Money

Kangji Medical Holdings generates revenue through the sale of its medical devices and surgical products to hospitals, clinics, and healthcare providers. The company's primary revenue streams include the direct sale of orthopedic implants and surgical instruments, as well as ongoing sales of consumable medical supplies. Additionally, Kangji may engage in strategic partnerships with healthcare institutions and distributors, which can enhance its market reach and drive sales growth. The company also benefits from advancements in medical technology and increasing demand for innovative healthcare solutions, contributing to its financial performance.

Kangji Medical Holdings Limited Financial Statement Overview

Summary

Kangji Medical Holdings Limited exhibits strong financial performance across all verticals. The income statement reveals consistent revenue and profitability growth, while the balance sheet shows financial stability with low leverage. The cash flow statement indicates robust cash generation and efficient capital management. Overall, the company is well-positioned for future growth with its solid financial foundation.

Income Statement

Kangji Medical Holdings Limited has demonstrated consistent revenue growth over the years, with a significant increase in total revenue from 2023 to 2024. The company maintains high gross profit margins, indicating strong cost control and pricing power. The net profit margin is also robust, reflecting efficient operations and profitability. EBIT and EBITDA margins are healthy, showcasing strong operational performance.

Balance Sheet

The balance sheet is strong, with a low debt-to-equity ratio due to minimal total debt, indicating low financial risk. The company has a high equity ratio, signifying a substantial equity base relative to total assets. Return on equity is impressive, suggesting effective use of shareholders' funds to generate profits. Overall, the balance sheet reflects financial stability and conservative leverage.

Cash Flow

The cash flow statement shows substantial operating cash flow, comfortably covering net income, highlighting strong cash generation. Free cash flow has grown significantly, pointing to effective capital expenditure management. The company's ability to maintain positive free cash flow alongside growth indicates a solid cash position and investment capacity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.05B	1.01B	926.02M	786.37M	690.26M	511.49M
Gross Profit	826.89M	797.65M	741.20M	635.25M	562.93M	431.47M
EBITDA	617.76M	562.61M	464.58M	586.65M	427.25M	319.14M
Net Income	561.35M	581.44M	504.02M	478.74M	456.79M	250.30M
Balance Sheet
Total Assets	3.06B	2.92B	4.26B	3.98B	3.39B	3.02B
Cash, Cash Equivalents and Short-Term Investments	1.77B	1.24B	2.69B	2.83B	3.01B	2.78B
Total Debt	921.00K	3.52M	43.99M	49.02M	4.05M	5.05M
Total Liabilities	461.50M	289.39M	319.97M	266.10M	129.94M	83.65M
Stockholders Equity	2.59B	2.63B	3.65B	3.37B	3.26B	2.94B
Cash Flow
Free Cash Flow	485.41M	504.52M	331.70M	243.62M	404.88M	203.21M
Operating Cash Flow	537.60M	560.10M	419.62M	319.31M	435.75M	221.04M
Investing Cash Flow	-239.21M	1.04B	-391.70M	-369.98M	-160.09M	-610.98M
Financing Cash Flow	-1.66B	-1.70B	-243.53M	-472.79M	-97.61M	2.15B

Kangji Medical Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9997, the sentiment is Positive. The current price of 9.2 is above the 20-day moving average (MA) of 9.20, above the 50-day MA of 9.08, and above the 200-day MA of 8.17, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 79.74 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9997.

Kangji Medical Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9997	83 Outperform	€10.68B	17.58	23.40%	2.84%	6.51%	4.85%
1358	74 Outperform	€2.12B	13.75	3.76%	7.29%	21.39%	-0.57%
1501	70 Neutral	HK$5.29B	25.57	10.31%	―	14.06%	3.02%
1066	68 Neutral	HK$23.79B	11.29	8.34%	4.62%	0.74%	2.13%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Kangji Medical Holdings Limited Corporate Events

Kangji Medical Holdings Announces Privatization and Delisting Plan

Kangji Medical Holdings Limited has announced a proposal for its privatization through a scheme of arrangement sanctioned by the Grand Court. This move includes the withdrawal of the company’s listing and involves a special deal concerning a rollover arrangement and shareholders’ agreement. The scheme’s sanctioning by the Grand Court marks a significant step in the process, with the proposal set to become effective upon the fulfillment of certain conditions. This development could impact the company’s operations and market positioning, affecting stakeholders and potentially altering its strategic direction.

Kangji Medical Holdings Announces Privatization and Delisting Plan

Kangji Medical Holdings Limited has announced a proposal for its privatization through a scheme of arrangement, which has been approved by the Scheme Shareholders and Independent Shareholders at the Court Meeting and EGM held on November 10, 2025. The approval includes the cancellation of Scheme Shares and issuance of new shares to the Offeror, Knight Bidco Limited, with the expected withdrawal of Kangji Medical’s shares from the Stock Exchange set for December 9, 2025. This move signifies a strategic shift in the company’s operational structure, potentially impacting its market positioning and shareholder dynamics.

Kangji Medical Holdings Limited Proposes Privatization via Scheme of Arrangement

Kangji Medical Holdings Limited is undergoing a privatization process proposed by Knight Bidco Limited through a scheme of arrangement under the Companies Act. The scheme document has been dispatched to shareholders, and the Independent Board Committee, along with the Independent Financial Adviser, has recommended that shareholders vote in favor of the proposal, deeming it fair and reasonable.

Kangji Medical Announces Shareholder Meeting for Strategic Scheme Approval

Kangji Medical Holdings Limited has announced a court-directed meeting for its independent shareholders to consider and potentially approve a scheme of arrangement. This meeting, scheduled for November 10, 2025, in Hong Kong, is a significant step in the company’s strategic planning, potentially impacting its operational structure and shareholder relations.

Kangji Medical to Discuss Capital Restructuring and Special Deal at EGM

Kangji Medical Holdings Limited has announced an Extraordinary General Meeting (EGM) scheduled for November 10, 2025, to discuss and potentially approve a Scheme of Arrangement. This involves a capital reduction and subsequent issuance of shares to Knight Bidco Limited, as well as a potential withdrawal of the company’s shares from the Stock Exchange. The meeting will also address a Special Deal under the Takeovers Code, which requires shareholder approval. These actions could significantly impact the company’s share structure and market presence.

Kangji Medical Updates on Privatization Proposal and Shareholder Clarification

Kangji Medical Holdings Limited has announced an update on its privatization proposal by Knight Bidco Limited through a scheme of arrangement. The company is in the process of finalizing the Scheme Document, with a court hearing scheduled for October 6, 2025. The proposal’s implementation is contingent on fulfilling certain conditions, including court approval. Additionally, the company clarified that Bin Yuan Capital Limited and LYFE Capital Management Limited are not current shareholders.