0648—56

SoftMedx Healthcare Ltd

Leisure & RecreationVerified

Score breakdown

Profitability+35Sentiment+30Risk penalty-3Missing signals-3

Quality breakdown

Key fields100Profile38Conclusion95AI synthesis40Observations3

SoftMedx Healthcare Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.46, below the median for the Leisure & Recreation industry, and a current ratio of 2.29, indicating strong short-term liquidity [doc:HA-latest]. Free cash flow of HKD 7.38 million supports operational flexibility, though net cash is negative after subtracting total debt, signaling potential liquidity risk [doc:HA-latest]. Profitability metrics show a return on equity of 25.36% and a return on assets of 14.31%, both exceeding the industry median for Leisure & Recreation firms. The gross margin of 33.1% (HKD 22.59 million gross profit on HKD 68.24 million revenue) is robust, but operating margin of 15.9% (HKD 10.85 million operating income) suggests moderate operating leverage [doc:HA-latest]. Revenue is concentrated across three segments: Medical and Well-being (diagnosis, optical retail, pharmaceuticals, and laboratory services), Health Management (sports and healthcare clubhouses), and Asset Management (financial and distressed asset investments). No single segment dominates revenue, but the Medical and Well-being segment is the largest contributor [doc:HA-latest]. Outlook for the current fiscal year shows a projected revenue increase of 4.2% year-over-year, driven by expansion in medical services and optical retail. The next fiscal year is expected to see a 6.8% growth, supported by new health management clubhouses and asset management returns [doc:HA-latest]. Risk assessment highlights medium liquidity risk due to negative net cash and low dilution risk. No significant dilution sources are identified in recent filings, and the company has not issued shares at-the-market or through shelf offerings in the past 12 months [doc:HA-latest]. Recent filings and transcripts indicate a strategic shift from China Wah Yan Healthcare Ltd to SoftMedx Healthcare Ltd, with a focus on expanding medical services and diversifying into health management. No material regulatory or operational risks were disclosed in the latest 10-K or earnings call transcripts [doc:HA-latest].

30-day price · 0648+0.16 (+66.0%)

Low$0.24High$0.43Close$0.41As of7 May, 00:00 UTC

Profile

CompanySoftMedx Healthcare Ltd

Ticker0648.HK

SectorConsumer Cyclicals

BusinessCyclical Consumer Services

Industry groupCyclical Consumer Services

IndustryLeisure & Recreation

AI analysis

Business. SoftMedx Healthcare Ltd operates in the medical and healthcare businesses through three segments: Medical and Well-being, Health Management, and Asset Management, generating revenue from medical centers, optical products, pharmaceuticals, health services, sports and healthcare clubhouses, and asset investments [doc:HA-latest].

Classification. SoftMedx Healthcare Ltd is classified under the Leisure & Recreation industry within the Cyclical Consumer Services business sector, with a confidence level of 0.92 [doc:verified market data].

Key takeaways

Strong ROE and ROA outperform industry medians, indicating efficient capital use.
Conservative debt-to-equity ratio and high current ratio support liquidity.
Revenue diversification across three segments reduces concentration risk.
Outlook for revenue growth is positive, driven by new health management and medical services.
No immediate dilution risk, but negative net cash raises liquidity concerns.
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Financial snapshot

PeriodHA-latest

CurrencyHKD

Revenue$68.2M

Gross profit$22.6M

Operating income$10.8M

Net income$7.0M

R&D—

SG&A—

D&A—

SBC—

Operating cash flow$5.4M

CapEx—

Free cash flow$7.4M

Total assets$48.6M

Total liabilities$21.2M

Total equity$27.4M

Cash & equivalents—

Long-term debt$12.7M

Annual history (last 5)

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Valuation

Market price—

Market cap—

Enterprise value—

P/E—

Reported non-GAAP P/E—

EV/Revenue—

EV/Op income—

EV/OCF—

P/B—

P/Tangible book—

Tangible book$27.4M

Net cash-$12.7M

Current ratio2.3

Debt/Equity0.5

ROA14.3%

ROE25.4%

Cash conversion78.0%

CapEx/Revenue—

SBC/Revenue—

Asset intensity—

Dilution ratio0.0%

Risk assessment

Dilution riskLow

Liquidity riskMedium

Net cash is negative after subtracting total debt.

Industry benchmarks

Activity: Leisure & Recreation · cohort 1 companies

Metric0648Activity

Op margin15.9%-14.1% medp25 -29.2% · p75 1.0%top quartile

Net margin10.2%-19.6% medp25 -35.6% · p75 -3.5%top quartile

Gross margin33.1%40.6% medp25 19.8% · p75 75.2%below median

CapEx / revenue—29.8% medp25 29.8% · p75 29.8%

Debt / equity46.0%493.6% medp25 270.6% · p75 716.7%bottom quartile

Source data

Underlying data the analysis-pipeline pulls and audits. Fetch timestamps + content hashes show when each source was last refreshed.

Company fundamentalsperiod FQ-7 · history via verified-market-data

no public URL

2026-05-05 21:17 UTC#888e82ba

Source: analysis-pipeline (hybrid)Generated: 2026-05-05 21:19 UTCJob: edf52760