Sipai Health Technology Co., Ltd. (0314) AI Stock Analysis

• Market Cap: HK$2.63B
• Dividend Yield: N/A
• Average Volume (3M): 4.27M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: -26.21%
• EPS Growth: -29.70%
• Country: HK
• Employees: 3,236
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Plans
• EPS (TTM): -0.13
• Shares Outstanding: 765,100,340
• 10 Day Avg. Volume: 2,933,960
• 30 Day Avg. Volume: 4,272,120
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$4.50
• Price Target Upside: 33.93% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: HK$4.50 ▲(33.93% Upside)

The overall stock score is heavily influenced by the company's poor financial performance and weak technical indicators. The negative P/E ratio and lack of dividend yield further contribute to a low valuation score. The absence of earnings call data and corporate events leaves the financial and technical analysis as the primary factors driving the score.

Sipai Health Technology Co., Ltd. Business Overview & Revenue Model

Company Description

Sipai Health Technology Co., Ltd. operates as a medical technology and health management company in the People's Republic of China. The company operates through three segments: Specialty Pharmacy Business, Physician Research Assistance Business, and Health Insurance Services Business. The Specialty Pharmacy Business segment operates specialty pharmacy stores; and distributes pharmaceutical products to pharmaceutical companies and other distributors. The Physician Research Assistance Business segment offers pharmaceutical companies and other clinical trial institutions site management organization services, including site feasibility, site initiation, patient recruitment, patient management, data entry and document management, on-site drug management and bio-sample management, site closure, and others; and services for image management in clinical trials. The Health Insurance Services Business segment provides insurance brokerage services to insurance companies. The company was founded in 2014 and is headquartered in Guangzhou, the People's Republic of China.

How the Company Makes Money

Sipai Health Technology Co., Ltd. generates revenue through multiple key streams. Primarily, it earns money by selling its medical devices and equipment to hospitals and healthcare providers. Additionally, the company offers subscription-based health management software and telemedicine services, which provide ongoing revenue through monthly or annual fees. Significant partnerships with healthcare institutions and technology firms enhance its product offerings and market reach, thereby contributing to its overall earnings. Furthermore, Sipai may engage in research and development collaborations funded by grants or partnerships, which can also contribute to its revenue.

Sipai Health Technology Co., Ltd. Financial Statement Overview

Summary

Sipai Health Technology Co., Ltd. faces significant financial challenges characterized by recurring losses and cash flow inefficiencies. Despite revenue growth in certain years, profitability remains an issue due to high operational costs. Improvements in balance sheet stability are noted, yet historical financial distress impacts overall financial health. The company's reliance on external financing to sustain operations highlights potential risks if external funding becomes constrained.

Income Statement

The company has demonstrated a mixed revenue trajectory with growth from 2019 to 2021, followed by a decline in 2024. Gross profit margin remains low, indicating limited profit from sales. There is consistent negative net profit margin due to significant losses, reflecting poor profitability and efficiency. Persistent negative EBIT and EBITDA margins indicate operational challenges and inefficiencies.

Balance Sheet

Sipai Health Technology's debt-to-equity ratio is low, indicating manageable debt levels relative to equity. However, the negative equity in earlier years signals financial instability. Recent positive equity suggests improvement, yet return on equity remains negative due to continuous net losses. The company's equity ratio has improved, enhancing balance sheet stability but still reflecting past financial distress.

Cash Flow

The company consistently reports negative operating cash flow, reflecting challenges in generating cash from operations. Free cash flow has shown improvement but remains negative, suggesting ongoing cash strain. The operating cash flow to net income ratio is unfavorable, indicating inefficiencies in converting income to cash. Financing activities have historically supported cash positions, but dependency on external funding poses risks.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.57B	4.71B	4.12B	3.47B	2.70B
Gross Profit	366.10M	399.71M	334.83M	276.68M	186.86M
EBITDA	-334.60M	-189.21M	-1.53B	-4.45B	-1.11B
Net Income	-323.74M	-255.77M	-1.37B	-3.74B	-1.04B
Balance Sheet
Total Assets	2.27B	2.82B	2.93B	2.89B	2.48B
Cash, Cash Equivalents and Short-Term Investments	919.77M	1.13B	1.53B	1.61B	1.67B
Total Debt	45.49M	67.56M	67.76M	7.52B	63.59M
Total Liabilities	1.06B	1.18B	1.10B	8.32B	4.27B
Stockholders Equity	1.23B	1.62B	1.84B	-5.43B	-1.80B
Cash Flow
Free Cash Flow	-70.15M	-139.24M	-193.87M	-643.33M	-206.83M
Operating Cash Flow	-59.45M	-133.50M	-182.07M	-621.92M	-192.12M
Investing Cash Flow	-622.00K	-720.81M	1.03B	-1.02B	319.62M
Financing Cash Flow	-184.06M	-120.55M	81.69M	559.29M	1.31B

Sipai Health Technology Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0314, the sentiment is Negative. The current price of 3.36 is below the 20-day moving average (MA) of 4.29, below the 50-day MA of 5.33, and below the 200-day MA of 4.97, indicating a bearish trend. The MACD of -0.57 indicates Positive momentum. The RSI at 21.86 is Positive, neither overbought nor oversold. The STOCH value of 8.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0314.

Sipai Health Technology Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1501	73 Outperform	5.35B	25.85	10.82%	0.99%	14.06%	3.02%
1763	73 Outperform	5.02B	10.94	0.00%	2.56%	13.59%	6.31%
1931	65 Neutral	17.29B	91.90	7.01%	0.86%	0.33%	-44.28%
9996	41 Neutral	4.42B	-17.43	-11.17%	―	28.66%	9.02%
2179	41 Neutral	3.63B	-5.09	-106.25%	―	0.00%	-18.99%
0314	39 Underperform	HK$2.63B	―	-25.47%	―	-26.21%	-29.70%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Sipai Health Technology Co., Ltd. Corporate Events

Sipai Health Technology Reports Strategic Progress and Improved Financial Performance in H1 2025

Sipai Health Technology Co., Ltd. has announced its unaudited interim results for the first half of 2025, highlighting significant progress in its strategic transformation and upgrading efforts. The company has focused on expanding its health insurance services business and has implemented structural reforms to enhance efficiency. These efforts have resulted in a 4.7 percentage point increase in gross margin and a 59.6% decrease in normalized net loss, marking a clearer path to profitability and laying a solid foundation for sustainable development.

Sipai Health Technology Announces Upcoming Board Meeting for Interim Results

Sipai Health Technology Co., Ltd. has announced that its board of directors will hold a meeting on August 18, 2025, to approve the unaudited interim results for the first half of the year and consider the payment of an interim dividend. This meeting is significant as it could impact the company’s financial strategy and shareholder returns.

Sipai Health Technology Announces Change in Share Registrar

Sipai Health Technology Co., Ltd. has announced a change in its Hong Kong branch share registrar and transfer office, effective August 1, 2025, to Tricor Investor Services Limited. This move is significant for the company’s administrative operations and may impact shareholders who need to adjust to the new registrar for share-related transactions.

Sipai Health Technology Invests in Wealth Management Product for Treasury Optimization

Sipai Health Technology Co., Ltd. has entered into a subscription agreement with JPM to invest in a wealth management product, specifically a Callable Fixed Coupon Note, with a principal amount of US$30 million and an expected annual return rate of 4.58%. This investment is part of the company’s treasury management strategy to maximize returns on surplus cash, offering better yields and flexibility compared to other products, and is considered beneficial for the company and its shareholders.

Sipai Health Redeems Wealth Management Products for US$23.7 Million

Sipai Health Technology Co., Ltd. recently redeemed wealth management products from HSBC amounting to US$23.7 million, with an accrued interest income of approximately US$344,115.87. This transaction, classified as a discloseable transaction under the Listing Rules, will contribute to the company’s general working capital, potentially impacting its financial operations positively.

Sipai Health Technology Secures Shareholder Approval for Key AGM Resolutions

Sipai Health Technology Co., Ltd. announced that all resolutions proposed at its Annual General Meeting (AGM) held on June 20, 2025, were approved by shareholders. Key resolutions included the adoption of the company’s audited financial statements, re-election of directors, re-appointment of Ernst & Young as auditors, and granting mandates to the board for issuing and repurchasing shares. The successful passing of these resolutions reflects strong shareholder support and positions the company for continued strategic growth and operational efficiency.

Sipai Health Technology Announces Equity Disposal in Subsidiaries

Sipai Health Technology Co., Ltd. has announced a supplemental disclosure regarding the disposal of its 51% equity interest in four non-wholly owned subsidiaries. The consideration for the disposal was determined through arm’s length negotiations, taking into account the net asset value and historical performance of the target companies, which have experienced a slight decline. The agreed consideration represents a slight discount to a slight premium over the most recent net asset value, and the directors consider it fair and reasonable, serving the interests of the company and its shareholders.

Sipai Health Technology Partners with Gallagher for Strategic Insurance Innovation

Sipai Health Technology Co., Ltd. has announced a strategic cooperation framework agreement with Arthur J. Gallagher (Singapore) Pte. Ltd. to jointly develop customized insurance solutions and promote innovation in the health insurance sector. This collaboration aims to integrate Sipai’s customer resources with Gallagher’s product design and reinsurance capabilities, enhancing customer service and driving product upgrades. The agreement, initially set for five years, represents a significant opportunity for both parties to leverage their strengths and achieve mutual benefits, potentially reinforcing Sipai’s market leadership.