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EC Healthcare
(2138)
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Rating:46Neutral
Price Target:
HK$0.43
▼(-25.26% Downside)
Action:Reiterated
Date:08/22/26
The score is held back primarily by weak financial performance: contracting revenue, sustained losses through 2026, and unusually volatile gross margins, alongside weakening equity and higher leverage. Offsetting this somewhat, operating and free cash flow remain positive, and technical indicators are mostly neutral with modest near-term improvement versus the 20D/50D averages, but the longer-term trend remains below the 200D and valuation is not supportive due to a negative P/E.
Positive Factors
Positive Cash Generation
Positive operating and free cash flow gives the group internal funding capacity despite accounting losses. This can support clinic operations and investment without relying solely on external capital, although the 11.6% YoY FCF decline limits comfort.
Negative Factors
Sustained Revenue Contraction
Two years of declining revenue indicate weakening demand, reduced service volumes or pressure on pricing and mix. Continued contraction can limit operating leverage, reduce the ability to absorb fixed clinic costs and make a durable return to profitability more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive Cash Generation
Positive operating and free cash flow gives the group internal funding capacity despite accounting losses. This can support clinic operations and investment without relying solely on external capital, although the 11.6% YoY FCF decline limits comfort.
Read all positive factors
EC Healthcare (2138) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$515.57M
Dividend Yield1.47%
Average Volume (3M)445.60K
Price to Earnings (P/E)―
Beta (1Y)1.28
Revenue Growth-8.94%
EPS Growth-140.82%
CountryHK
Employees2,400
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)-0.34
Shares Outstanding1,185,211,300
10 Day Avg. Volume434,500
30 Day Avg. Volume445,603
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.39
Price to Sales (P/S)0.14
P/FCF Ratio0.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.02
Revenue Forecast (FY)HK$5.02B
EC Healthcare Business Overview & Revenue Model
Company Description
EC Healthcare, an investment holding firm, delivers an extensive range of medical and healthcare services throughout Hong Kong, Macau, and mainland China. Its operations are structured into three primary divisions: Medical, Aesthetic Medical and B...
How the Company Makes Money
EC Healthcare primarily makes money by providing healthcare services directly to customers and recognizing revenue when those services are delivered. Key revenue streams include: (1) Health screening and preventive care: fees from individuals and ...
EC Healthcare Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
46
Neutral
Cash Flow
58
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.77B | 4.14B | 4.21B | 3.88B | 2.92B |
| Gross Profit | 600.33M | 3.34B | 3.54B | 3.32B | 2.57B |
| EBITDA | 546.83M | 619.28M | 743.26M | 786.56M | 802.68M |
| Net Income | -402.72M | -167.19M | -18.95M | 69.65M | 197.50M |
Balance Sheet | |||||
| Total Assets | 4.35B | 5.03B | 5.37B | 5.51B | 4.86B |
| Cash, Cash Equivalents and Short-Term Investments | 988.66M | 1.07B | 606.32M | 726.84M | 872.07M |
| Total Debt | 1.26B | 1.34B | 1.60B | 1.53B | 941.11M |
| Total Liabilities | 2.64B | 2.82B | 2.97B | 3.14B | 2.51B |
| Stockholders Equity | 1.38B | 1.79B | 1.96B | 1.85B | 1.88B |
Cash Flow | |||||
| Free Cash Flow | 606.56M | 686.07M | 527.88M | 195.83M | 348.09M |
| Operating Cash Flow | 606.56M | 743.24M | 689.10M | 608.32M | 608.36M |
| Investing Cash Flow | -275.81M | 341.28M | -358.36M | -715.62M | -571.19M |
| Financing Cash Flow | -570.48M | -633.79M | -486.46M | -51.31M | -99.95M |
EC Healthcare Technical Analysis
Positive
0.57
Price Trends
0.40
Positive
0.41
Positive
0.49
Negative
Market Momentum
<0.01
Positive
55.22
Neutral
61.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2138, the sentiment is Positive. The current price of 0.57 is above the 20-day moving average (MA) of 0.42, above the 50-day MA of 0.40, and above the 200-day MA of 0.49, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 55.22 is Neutral, neither overbought nor oversold. The STOCH value of 61.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2138.
EC Healthcare Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
56 Neutral | HK$1.04B | -19.25 | -3.87% | ― | 8.73% | 80.38% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | HK$126.67M | -6.43 | -13.48% | 15.79% | -9.95% | -834.42% | |
46 Neutral | HK$515.57M | -1.28 | -25.36% | 1.47% | -8.94% | -140.82% | |
46 Neutral | HK$920.97M | -16.20 | -12.81% | 0.53% | 13.43% | 7.72% | |
42 Neutral | HK$231.21M | -0.23 | 76.98% | ― | ― | ― |
* Healthcare Sector Average
HK:2138
EC Healthcare
0.43
-0.40
-48.19%
HK:0399
Innovative Pharmaceutical Biotech
0.07
-0.44
-85.69%
HK:0157
Natural Beauty Bio-Technology
0.46
-0.11
-18.75%
HK:9886
Dingdang Health Technology Group Ltd.
0.85
0.03
3.66%
HK:2593
Herbs Generation Group Holdings Limited Class H
0.95
-0.37
-28.03%
HK:6883
Eternal Beauty Holdings Limited
2.03
-0.06
-2.87%
EC Healthcare Corporate Events
EC Healthcare shareholders unanimously back AGM resolutions
Aug 21, 2026
EC Healthcare has announced that all resolutions put to shareholders at its annual general meeting on 21 August 2026 were approved by poll. Shareholder turnout reached about 60.77% of the company’s issued share capital, with all votes cast i...
EC Healthcare Sets AGM to Approve Accounts, Board Changes and Share Issuance Mandate
Jul 30, 2026
EC Healthcare has called an annual general meeting for 21 August 2026 in Hong Kong, where shareholders will vote on adopting the audited consolidated financial statements and directors’ and auditors’ reports for the year ended 31 March...
EC Healthcare Flags Wider FY2026 Loss on Heavy Non-Cash Impairments
Jun 25, 2026
EC Healthcare has warned that it expects to swing to an EBITDA loss of between HK$80 million and HK$110 million for the year ended 31 March 2026, compared with EBITDA of about HK$307.8 million a year earlier. The decline reflects substantial non-c...
EC Healthcare Sets June Board Meeting to Approve Annual Results and Consider Final Dividend
Jun 16, 2026
EC Healthcare has scheduled a board meeting for 29 June 2026 to review and approve the audited final results for the financial year ended 31 March 2026. The board will also consider the declaration of a final dividend, signaling potential sharehol...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.