EC Healthcare (2138) AI Stock Analysis

• Market Cap: HK$746.68M
• Dividend Yield: 1.54%
• Average Volume (3M): 629.78K
• Price to Earnings (P/E): 19.7
• Beta (1Y): 1.52
• Revenue Growth: -1.68%
• EPS Growth: -781.88%
• Country: HK
• Employees: 2,872
• Sector: Healthcare
• Sector Strength: 45
• Industry: Household & Personal Products
• EPS (TTM): -0.15
• Shares Outstanding: 1,185,211,300
• 10 Day Avg. Volume: 673,306
• 30 Day Avg. Volume: 629,783
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: HK$0.50 ▼(-23.08% Downside)

EC Healthcare's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. The company's declining revenue and profitability, combined with negative valuation metrics, contribute to a low score. While cash flow generation offers some support, the stock's current technical setup and valuation do not favor a positive outlook.

EC Healthcare Business Overview & Revenue Model

Company Description

EC Healthcare, an investment holding company, engages in the provision of medical and healthcare services in Hong Kong, Macau, and the People's Republic of China. The company operates through three segments: Medical, Aesthetic Medical and Beauty and Wellness, and Others. It provides quasi-medical, beauty and wellness, medical imaging, medical surgery, aesthetic medical beauty, aesthetic medical, dental, hair treatment, vaccine, chiropractic, psychological, and orthopedics services. It also offers administrative, management, laboratory testing, performance marketing, marketing, and travel agency services; sells beauty and skincare products; operates in healthcare machines and property investment holding businesses; and provides multi-channel networking and related services, and veterinary services. The company offers products and services primarily under private-label brands, such as PRODERMA LAB, Swissline, Suissebeaute, and re:HEALTH. The company was formerly known as Union Medical Healthcare Limited and changed its name to EC Healthcare in April 2021. EC Healthcare was founded in 2005 and is headquartered in Mong Kok, Hong Kong.

How the Company Makes Money

EC Healthcare generates revenue through multiple streams, primarily from its outpatient services and aesthetic treatments, which include consultations, medical procedures, and wellness programs. The company also earns income from the sale of healthcare products, such as supplements and skincare items. Additionally, EC Healthcare has established partnerships with various medical professionals and clinics, enhancing its service offerings and expanding its customer base. The integration of technology, such as telemedicine and online booking systems, further contributes to its revenue by increasing accessibility and convenience for patients.

EC Healthcare Financial Statement Overview

Summary

EC Healthcare faces significant challenges with declining revenue and profitability, as evidenced by negative net income and shrinking margins. While the balance sheet shows moderate leverage, the negative return on equity is concerning. Cash flow generation remains a relative strength, providing some cushion against operational losses. The company needs to address revenue growth and profitability to improve its financial health.

Income Statement

EC Healthcare's income statement shows a concerning trend with declining revenue and profitability. The gross profit margin remains high at 80.7% for 2025, but the net profit margin is negative, indicating losses. Revenue has decreased by 29.9% compared to the previous year, and EBIT and EBITDA margins have also declined, suggesting operational challenges.

Balance Sheet

The balance sheet reflects moderate financial stability with a debt-to-equity ratio of 0.75, which is manageable but has increased over the years. The return on equity is negative, indicating inefficiencies in generating returns for shareholders. However, the equity ratio remains stable, suggesting a reasonable proportion of equity financing.

Cash Flow

Cash flow analysis shows a positive trend with an 8.5% growth in free cash flow. The operating cash flow to net income ratio is 0.39, indicating that cash flows are not fully covering net losses. However, the free cash flow to net income ratio is strong at 0.92, suggesting efficient cash generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.15B	4.14B	4.21B	3.88B	2.92B	2.08B
Gross Profit	1.34B	3.34B	3.54B	3.32B	2.57B	1.85B
EBITDA	428.83M	619.28M	743.26M	786.56M	802.68M	599.41M
Net Income	-11.50M	-167.19M	-18.95M	69.65M	197.50M	192.87M
Balance Sheet
Total Assets	5.53B	5.03B	5.37B	5.51B	4.86B	3.79B
Cash, Cash Equivalents and Short-Term Investments	833.97M	1.07B	606.32M	726.84M	872.07M	938.70M
Total Debt	1.51B	1.34B	1.60B	1.53B	941.11M	1.03B
Total Liabilities	2.98B	2.82B	2.97B	3.14B	2.51B	2.16B
Stockholders Equity	2.01B	1.79B	1.96B	1.85B	1.88B	1.27B
Cash Flow
Free Cash Flow	632.09M	686.07M	527.88M	195.83M	348.09M	471.71M
Operating Cash Flow	793.32M	743.24M	689.10M	608.32M	608.36M	620.81M
Investing Cash Flow	-119.44M	341.28M	-358.36M	-715.62M	-571.19M	-369.02M
Financing Cash Flow	-558.39M	-633.79M	-486.46M	-51.31M	-99.95M	156.78M

EC Healthcare Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2138, the sentiment is Negative. The current price of 0.65 is below the 20-day moving average (MA) of 0.71, below the 50-day MA of 0.78, and below the 200-day MA of 0.68, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 37.41 is Neutral, neither overbought nor oversold. The STOCH value of 41.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2138.

EC Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2023	62 Neutral	HK$359.01M	6.40	10.92%	―	11.10%	-4.38%
2145	62 Neutral	HK$39.80B	39.36	39.62%	2.38%	20.78%	18.37%
2367	60 Neutral	HK$42.72B	16.98	29.64%	1.68%	36.70%	22.26%
3332	56 Neutral	HK$664.25M	21.93	3.92%	―	-0.92%	-71.88%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
2138	46 Neutral	HK$746.68M	19.67	-8.91%	1.54%	-1.68%	-781.88%
0157	41 Neutral	$1.08B	―	-12.38%	―	39.29%	-71.82%

EC Healthcare Corporate Events

EC Healthcare Successfully Passes All Resolutions at AGM

EC Healthcare announced that all resolutions proposed at its Annual General Meeting on August 22, 2025, were successfully passed by shareholders. This includes the re-election of directors and the re-appointment of Ernst & Young as auditors. The approval of these resolutions signifies strong shareholder support and stability in the company’s governance, potentially reinforcing its position in the healthcare industry.

The most recent analyst rating on (HK:2138) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on EC Healthcare stock, see the HK:2138 Stock Forecast page.

EC Healthcare Announces Annual General Meeting and Key Resolutions

EC Healthcare has announced its upcoming annual general meeting, scheduled for August 22, 2025. Key agenda items include the adoption of financial statements, re-election of directors, and re-appointment of auditors. The meeting will also address the authorization for directors to manage share allotments and related securities, which could impact the company’s capital structure and shareholder value.