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Kato (Hong Kong) Holdings Ltd.
(2189)
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Rating:72Outperform
Price Target:
HK$0.58
▲(15.40% Upside)
Action:Upgraded
Date:08/04/26
The score is driven primarily by solid financial fundamentals—especially strong cash generation and improving leverage—tempered by recent profitability and margin volatility. Technicals add support with an uptrend above major moving averages and positive momentum. Valuation is also supportive, led by a high dividend yield alongside a reasonable P/E.
Positive Factors
Strong Cash Generation
Robust operating cash flow and strong free cash flow demonstrate that the business converts operations into funding effectively. This supports financial resilience, provides capacity for reinvestment or shareholder returns, and reduces reliance on external financing over the next several quarters.
Negative Factors
Margin Compression
The sharp reduction in net margins indicates that less revenue is being converted into earnings than in prior years. If profitability remains near the lower level, it could restrict internal funding, weaken returns, and reduce the durability of the company’s earnings power.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Robust operating cash flow and strong free cash flow demonstrate that the business converts operations into funding effectively. This supports financial resilience, provides capacity for reinvestment or shareholder returns, and reduces reliance on external financing over the next several quarters.
Read all positive factors
Kato (Hong Kong) Holdings Ltd. (2189) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$500.00M
Dividend Yield6%
Average Volume (3M)133.78K
Price to Earnings (P/E)14.6
Beta (1Y)0.08
Revenue Growth11.56%
EPS Growth56.16%
CountryHK
Employees656
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.03
Shares Outstanding1,000,000,000
10 Day Avg. Volume84,400
30 Day Avg. Volume133,784
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)1.01
Price to Sales (P/S)1.30
P/FCF Ratio5.02
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)N/A
Revenue Forecast (FY)N/A
Kato (Hong Kong) Holdings Ltd. Business Overview & Revenue Model
Company Description
Kato (Hong Kong) Holdings Limited, an investment holding entity, primarily focuses on delivering residential and day care solutions for the elderly population across Hong Kong. The organization offers an extensive array of residential care service...
Kato (Hong Kong) Holdings Ltd. Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
62
Positive
Cash Flow
78
Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 353.78M | 317.11M | 271.33M | 408.30M | 320.34M |
| Gross Profit | 115.12M | 296.85M | 135.21M | 185.43M | 143.75M |
| EBITDA | 120.53M | 96.84M | 133.61M | 206.90M | 161.67M |
| Net Income | 34.22M | 21.88M | 64.19M | 126.15M | 98.94M |
Balance Sheet | |||||
| Total Assets | 772.60M | 809.57M | 863.30M | 699.30M | 621.62M |
| Cash, Cash Equivalents and Short-Term Investments | 72.94M | 52.66M | 68.71M | 78.53M | 58.24M |
| Total Debt | 273.68M | 332.96M | 384.30M | 270.03M | 294.79M |
| Total Liabilities | 312.20M | 367.34M | 428.77M | 326.36M | 329.41M |
| Stockholders Equity | 453.68M | 436.75M | 434.29M | 372.63M | 291.53M |
Cash Flow | |||||
| Free Cash Flow | 91.62M | 71.11M | 108.10M | 103.78M | 42.00M |
| Operating Cash Flow | 111.68M | 90.89M | 132.42M | 159.91M | 118.98M |
| Investing Cash Flow | -18.44M | 9.29M | -236.10M | -55.89M | -75.39M |
| Financing Cash Flow | -83.84M | -86.55M | 69.67M | -84.02M | -93.67M |
Kato (Hong Kong) Holdings Ltd. Technical Analysis
Positive
0.50
Price Trends
0.47
Positive
0.46
Positive
0.45
Positive
Market Momentum
<0.01
Positive
48.71
Neutral
13.23
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2189, the sentiment is Positive. The current price of 0.5 is above the 20-day moving average (MA) of 0.49, above the 50-day MA of 0.47, and above the 200-day MA of 0.45, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.71 is Neutral, neither overbought nor oversold. The STOCH value of 13.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2189.
Kato (Hong Kong) Holdings Ltd. Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | HK$500.00M | 14.62 | 7.63% | 6.00% | 11.56% | 56.16% | |
71 Outperform | HK$581.85M | 5.27 | 6.35% | 10.92% | -0.27% | 29.73% | |
58 Neutral | HK$288.46M | 10.63 | 3.43% | 3.95% | 4.23% | 3.03% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | HK$292.35M | -3.79 | -10.76% | 9.04% | -1.37% | -334.69% | |
50 Neutral | HK$467.79M | -143.62 | -0.41% | ― | 3.16% | -101.02% | |
49 Neutral | HK$448.35M | -4.35 | -6.22% | ― | -27.63% | -16.33% |
* Healthcare Sector Average
HK:2189
Kato (Hong Kong) Holdings Ltd.
0.50
0.10
23.76%
HK:2389
Beijing Health (Holdings) Limited
0.07
>-0.01
-1.33%
HK:1419
Human Health Holdings Ltd.
0.76
-0.06
-7.32%
HK:3689
Guangdong Kanghua Healthcare Co., Ltd. Class H
1.74
-0.03
-1.97%
HK:3869
Hospital Corporation of China Ltd
3.39
-2.61
-43.49%
HK:0722
UMP Healthcare Holdings Limited
0.37
-0.08
-17.61%
Kato (Hong Kong) Holdings Ltd. Corporate Events
Kato (Hong Kong) Holdings Announces Passing of Founder and Executive Director
Oct 6, 2026
Kato (Hong Kong) Holdings Ltd., a provider of care and attention homes for the elderly, traces its origins to the first facility founded in 1991 by Ms. Ngai Ka Yee. The group now operates as a listed company in Hong Kong, with a board comprising e...
Kato (Hong Kong) Clarifies Board and Committee Structure
Oct 6, 2026
Kato (Hong Kong) Holdings Limited has announced the current composition of its board, led by Chairman and Chief Executive Officer Mr. Ngai Shi Shing Godfrey and executive director Mr. Lau Kwok Wo, alongside three independent non-executive director...
Kato (Hong Kong) Wins Strong Shareholder Backing for AGM Resolutions and Capital Mandates
Sep 9, 2026
Kato (Hong Kong) Holdings Ltd. reported that shareholders overwhelmingly approved all resolutions at its annual general meeting held on 9 September 2026, including the adoption of audited financial statements for the year ended 31 March 2026 and t...
Kato (Hong Kong) Sets AGM to Approve Results, Dividend and Share Issue Mandate
Jul 30, 2026
Kato (Hong Kong) Holdings Ltd. has called an annual general meeting for 9 September 2026 in Tsuen Wan, Hong Kong, where shareholders will vote on adopting the audited consolidated financial statements for the year ended 31 March 2026 and receive t...
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.