EC Healthcare (2138) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

EC Healthcare

ADICON Holdings Ltd.

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C-MER Eye Care Holdings Ltd.

MedSci Healthcare Holdings Ltd.

Jinxin Fertility Group Ltd.

New Horizon Health Ltd.

Arrail Group Ltd.

JD Health International, Inc.

ClouDr Group Ltd.

Yunkang Group Ltd.

Why is EC Healthcare ?

Poor long term growth as Operating profit has grown by an annual rate -165.07% of over the last 5 years

Negative results in Sep 25

ROCE(HY) Lowest at -10.08%
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
INVENTORY TURNOVER RATIO(HY) Lowest at 22.9 times

With ROE of 5.52%, it has a Attractive valuation with a 0.54 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -23.94%, its profits have risen by 51.9% ; the PEG ratio of the company is 0.2

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -23.94% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to EC Healthcare should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is EC Healthcare for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

EC Healthcare

-100.0%

-1.00

62.74%

Hang Seng Hong Kong

8.25%

0.41

19.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.75%

EBIT Growth (5y)

-165.07%

EBIT to Interest (avg)

3.47

Debt to EBITDA (avg)

0.24

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

1.27

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

9.95%

ROE (avg)

9.02%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.54

EV to EBIT

34.06

EV to EBITDA

1.39

EV to Capital Employed

0.52

EV to Sales

0.22

PEG Ratio

0.19

Dividend Yield

1.23%

ROCE (Latest)

1.54%

ROE (Latest)

5.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.07% (YoY

CASH AND EQV(HY)

Highest at HKD 1,134.47 MM

-11What is not working for the Company

ROCE(HY)

Lowest at -10.08%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

INVENTORY TURNOVER RATIO(HY)

Lowest at 22.9 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 11.28 times

NET SALES(Q)

Lowest at HKD 1,930.58 MM

PRE-TAX PROFIT(Q)

Lowest at HKD 14.24 MM

NET PROFIT(Q)

Lowest at HKD -10.52 MM

Here's what is working for EC Healthcare

Cash and Eqv

Highest at HKD 1,134.47 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -2.07% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for EC Healthcare

Net Profit

At HKD -10.52 MM has Fallen at -176.02%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (HKD MM)

Net Sales

Lowest at HKD 1,930.58 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Pre-Tax Profit

Lowest at HKD 14.24 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Pre-Tax Profit

Fallen at -73.89%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD -10.52 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

Inventory Turnover Ratio

Lowest at 22.9 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 11.28 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Non Operating Income

Highest at HKD 0.99 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income