NEUSOFT XIKANG HOLDINGS INC. (9686) AI Stock Analysis

• Market Cap: HK$766.11M
• Dividend Yield: N/A
• Average Volume (3M): 60.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.41
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 855
• Sector: Healthcare
• Sector Strength: 45
• Industry: Software - Services
• EPS (TTM): -0.11
• Shares Outstanding: 841,876,830
• 10 Day Avg. Volume: 65,850
• 30 Day Avg. Volume: 60,916
• PEG Ratio: 0.21
• Price to Book (P/B): 2.72
• Price to Sales (P/S): 1.97
• P/FCF Ratio: 45.83
• 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$1.00
• Price Target Upside: 9.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: HK$1.00 ▲(9.89% Upside)

The overall stock score is primarily impacted by weak financial performance and poor valuation metrics. The technical analysis suggests a bearish trend, although the RSI indicates potential for a rebound. Improvements in free cash flow provide a slight positive note, but the company's high leverage and negative profitability remain significant concerns.

NEUSOFT XIKANG HOLDINGS INC. Business Overview & Revenue Model

Company Description

Xikang Cloud Hospital Holdings, Inc. engages in the development of a city-specific cloud hospital platform. It operates through the following segments: Cloud Hospital Platform Services, Internet Medical Services, Health Management Services, and Smart Healthcare Products. The Cloud Hospital Platform Services segment offers technology solutions to local governments, medical institutions, and insurers. The Internet Medical Services segment includes online hospital, remote medical, smart family doctor, and internet home care services. The Health Management Services segment consists of comprehensive health management and chronic disease management services. The Smart Healthcare Products segment sells smart healthcare products to local governments, primary medical institutions, corporations, and individuals. The company was founded on May 12, 2011 and is headquartered in Shanghai, China.

How the Company Makes Money

Neusoft Xikang Holdings Inc. generates revenue through a diversified business model centered around its digital health solutions. The company earns money from the sale and licensing of its proprietary healthcare platforms and software solutions to hospitals, clinics, and other healthcare providers. Additionally, revenue is generated from the sale of medical devices and equipment. Neusoft Xikang also offers health management and consulting services, which provide recurring income streams. The company has established strategic partnerships with healthcare institutions and technology firms, further enhancing its market reach and revenue potential. Key factors contributing to its earnings include its ability to innovate in digital health and its strong presence in the rapidly growing healthcare technology market.

NEUSOFT XIKANG HOLDINGS INC. Financial Statement Overview

Summary

The financial performance is weak, with declining revenues and persistent losses. Despite improvements in cash flow and equity position, the company faces significant operational challenges and needs to strengthen its revenue base.

Income Statement

The company has faced declining revenues with a negative revenue growth rate of -6.73% from 2023 to 2024. Margins are weak, with a gross profit margin of 29.41% and a net profit margin of -16.56% in 2024, indicating significant losses. EBIT and EBITDA margins are also negative, reflecting operational challenges.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.58 in 2024, indicating reliance on debt financing. However, the equity position improved from negative in previous years to positive in 2024. The equity ratio is 28.83%, suggesting a relatively low equity base compared to total assets.

Cash Flow

The company achieved positive operating cash flow in 2024, a significant improvement from negative cash flows in prior years. The free cash flow to net income ratio is positive, indicating better cash generation relative to net losses. However, cash flow stability remains a concern given historical volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	500.89M	501.50M	537.72M	687.41M	614.30M	503.01M
Gross Profit	144.25M	147.50M	164.61M	168.45M	170.23M	134.11M
EBITDA	-45.88M	-52.06M	-75.65M	-161.41M	-214.71M	-101.65M
Net Income	-72.38M	-83.05M	-154.65M	-241.97M	-296.54M	-196.43M
Balance Sheet
Total Assets	1.11B	1.26B	1.40B	934.45M	946.85M	954.64M
Cash, Cash Equivalents and Short-Term Investments	703.42M	797.70M	822.67M	351.76M	364.91M	419.87M
Total Debt	520.84M	574.47M	603.44M	573.44M	456.28M	446.23M
Total Liabilities	785.76M	892.31M	964.28M	1.38B	1.21B	1.09B
Stockholders Equity	322.38M	363.31M	428.14M	-451.98M	-274.55M	-132.99M
Cash Flow
Free Cash Flow	36.20M	21.56M	-24.42M	-81.17M	-101.77M	-124.13M
Operating Cash Flow	35.91M	21.56M	-20.16M	-73.83M	-83.38M	-17.30M
Investing Cash Flow	-30.55M	110.45M	-146.60M	-8.45M	-5.47M	-195.16M
Financing Cash Flow	-93.62M	-56.56M	504.77M	64.62M	64.90M	216.29M

NEUSOFT XIKANG HOLDINGS INC. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9686, the sentiment is Negative. The current price of 0.91 is below the 20-day moving average (MA) of 0.98, below the 50-day MA of 0.98, and above the 200-day MA of 0.88, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 28.30 is Positive, neither overbought nor oversold. The STOCH value of 42.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9686.

NEUSOFT XIKANG HOLDINGS INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2276	66 Neutral	HK$18.25B	31.57	24.57%	0.89%	13.58%	24.59%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
2160	49 Neutral	HK$2.99B	563.64	0.22%	―	-4.38%	―
2170	48 Neutral	HK$743.99M	―	-20.60%	―	11.43%	4.88%
9686	46 Neutral	HK$766.11M	―	-20.43%	―	―	―
2158	45 Neutral	HK$5.16B	―	-2.97%	―	-12.31%	41.72%
2251	40 Neutral	HK$1.31B	―	-12.97%	―	-32.17%	-1.20%

NEUSOFT XIKANG HOLDINGS INC. Corporate Events

Xikang Cloud Hospital Holdings Reports Improved Losses Amid Revenue Dip

Xikang Cloud Hospital Holdings Inc. announced its interim results for the first half of 2025, reporting a slight revenue decrease of 0.3% compared to the same period in 2024, with a total revenue of RMB178.6 million. Despite the revenue dip, the company reduced its net loss by 17.4% to RMB50.0 million, attributed to business optimization and resource allocation improvements. The company’s unique business model, which involves strategic collaboration with local governments, aims to enhance the regional digital healthcare ecosystem through AI-driven innovations and scalable cloud hospital platforms.

The most recent analyst rating on (HK:9686) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on NEUSOFT XIKANG HOLDINGS INC. stock, see the HK:9686 Stock Forecast page.

Xikang Cloud Hospital Holdings to Discuss Interim Results and Dividend

Xikang Cloud Hospital Holdings Inc. has announced a board meeting scheduled for August 27, 2025, to discuss and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the recommendation of an interim dividend, indicating a potential financial distribution to shareholders, which could impact investor sentiment and the company’s market positioning.

Xikang Cloud Hospital Grants Share Options to Boost Stakeholder Alignment

Xikang Cloud Hospital Holdings Inc. announced the grant of 28,990,000 share options to 236 eligible participants under its Post-IPO Share Option Scheme. The options, which have an exercise price of HK$0.904 per share, are subject to a vesting schedule over three years and performance targets based on financial and business-related indicators. The scheme includes a clawback mechanism for violations of laws or company rules, ensuring alignment with company goals and stakeholder interests.