EC Healthcare (2138) AI Stock Analysis

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EC Healthcare

(HKEX:2138)

Select Model

Rating:49Neutral

Price Target:HKD 0.54▼(-0.55% Downside)

Action:reiterated

Date:09/29/26

The score is weighed down primarily by weak financial performance (multi-year revenue contraction, losses, and unusually volatile gross margin), partially offset by positive operating/free cash flow. Technicals are supportive (price above key moving averages and positive MACD) but overbought readings (RSI/Stochastics) add near-term risk. Valuation is difficult to support due to negative earnings and no dividend yield data.

Positive Factors

Positive Cash GenerationPositive operating and free cash flow provide internal funding capacity even while reported earnings are negative. This can support ongoing healthcare operations, required investment, and financial obligations, although the declining trend means the durability of this support depends on stabilizing cash generation.

Negative Factors

Revenue Contraction and LossesSustained revenue contraction reduces scale benefits and makes it harder to absorb fixed operating costs across the healthcare network. The shift from profit in 2023 to repeated losses through 2026 also indicates that earnings power has not yet stabilized, weakening confidence in near-term profitability.

EC Healthcare (2138) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 640.51M
Dividend Yield: ―
Average Volume (3M): 550.26K
Price to Earnings (P/E): -1.6
Beta (1Y): 0.87
Revenue Growth: -8.94%
EPS Growth: -140.82%
Country: Hong Kong
Employees: 2,400
Sector: Healthcare
Sector Strength: 51
Industry: Medical - Care Facilities

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 Beau...

EC Healthcare Financial Statement Overview

Summary

Overall fundamentals are pressured: revenue has declined for two consecutive years and results swung from profit (2023) to losses (2024–2026), with a sizable 2026 net loss (net margin -10.7%). Gross margin volatility (dropping to ~15.9% in 2026 from ~80%+ prior years) raises earnings-quality risk. Positives include still-solid operating cash flow and positive free cash flow, but both are trending down and the balance sheet shows weakening equity and rising leverage.

Income Statement

34Negative

Balance Sheet

46Neutral

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	3.77B	3.77B	4.14B	4.21B	3.88B	2.92B
Gross Profit	861.30M	600.33M	3.34B	3.54B	3.32B	2.57B
EBITDA	549.00M	546.83M	619.28M	743.26M	786.56M	802.68M
Net Income	-402.72M	-402.72M	-167.19M	-18.95M	69.65M	197.50M
Balance Sheet
Total Assets	4.35B	4.35B	5.03B	5.37B	5.51B	4.86B
Cash, Cash Equivalents and Short-Term Investments	988.66M	988.66M	1.07B	606.32M	726.84M	872.07M
Total Debt	1.26B	1.26B	1.34B	1.60B	1.53B	941.11M
Total Liabilities	2.64B	2.64B	2.82B	2.97B	3.14B	2.51B
Stockholders Equity	1.38B	1.38B	1.79B	1.96B	1.85B	1.88B
Cash Flow
Free Cash Flow	606.56M	606.56M	686.07M	527.88M	195.83M	348.09M
Operating Cash Flow	606.56M	606.56M	743.24M	689.10M	608.32M	608.36M
Investing Cash Flow	-275.81M	-275.81M	341.28M	-358.36M	-715.62M	-571.19M
Financing Cash Flow	-570.48M	-570.48M	-633.79M	-486.46M	-51.31M	-99.95M

EC Healthcare Technical Analysis

Technical Analysis SentimentPositive

Last Price0.55

Price Trends

50DMA0.50Positive

100DMA0.45Positive

200DMA0.48Positive

Market Momentum

MACD0.00Positive

RSI53.42Neutral

STOCH67.78Neutral

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 0.55 is above the 20-day moving average (MA) of 0.54, above the 50-day MA of 0.50, and above the 200-day MA of 0.48, indicating a bullish trend. The MACD of 0.00 indicates Positive momentum. The RSI at 53.42 is Neutral, neither overbought nor oversold. The STOCH value of 67.78 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

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

HK:2138 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:9886	56Neutral	HKD 1.10B	-15.52	-3.87%	―	8.73%	80.38%
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HK:2138	49Neutral	HKD 645.94M	-1.61	-25.36%	―	-8.94%	-140.82%
HK:0157	46Neutral	HKD 880.92M	-15.33	-12.81%	―	13.43%	7.72%
HK:2593	45Neutral	HKD 136.00M	-4.64	-20.22%	14.71%	-9.95%	-834.42%
HK:0399	42Neutral	HKD 231.21M	-0.36	53.52%	―	―	―

* Healthcare Sector Average

Performance Comparison

HK:2138 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:2138	EC Healthcare	0.55	-0.10	-16.15%
HK:0399	Innovative Pharmaceutical Biotech	0.07	-0.16	-68.53%
HK:0157	Natural Beauty Bio-Technology	0.44	-0.10	-18.52%
HK:9886	Dingdang Health Technology Group Ltd.	0.90	-0.19	-17.43%
HK:2593	Herbs Generation Group Holdings Limited Class H	1.02	-0.17	-14.29%
HK:6883	Eternal Beauty Holdings Limited	2.03	0.06	3.05%

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 in f...

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.

Date of analysis: Sep 29, 2026

EC Healthcare AI Stock Analysis