HYGEIA HEALTH (06078) Surges Over 4% Despite Projected 2025 Revenue and Profit Decline; Operating Cash Flow Jumps Over 33%

Stock News
Feb 02

HYGEIA HEALTH (06078) rose over 4%, gaining 4.13% to HK$13.35 by the time of writing, with a trading turnover of HK$62.3713 million. On the news front, HYGEIA HEALTH announced that it expects revenue for 2025 to be approximately RMB 4.0 to 4.05 billion, representing a year-on-year decrease of about 9% to 10%. Net profit is projected to be around RMB 140 to 200 million, a decline of approximately 66% to 76% year-on-year, primarily impacted by goodwill impairment. Adjusted net profit is anticipated to be approximately RMB 450 to 490 million, down about 19% to 25% compared to the previous year. Net cash generated from operating activities is expected to be approximately RMB 940 million to 1.0 billion, marking an increase of about 33% to 41% year-on-year. The announcement stated that the decreases in revenue, net profit, and non-IFRS adjusted net profit were mainly due to industry and macroeconomic influences, coupled with increased pre-operating expenses and depreciation/amortization for newly opened hospitals. Besides the factors mentioned above, the decline in the Group's net profit for the year ended December 31, 2025, was also primarily attributable to a goodwill impairment provision for Etern Group Ltd. When determining the necessity and amount of the related impairment and provision, the Company carefully assessed the Group's operational and financial performance as well as the future prospects of its business. The final impairment and provision amounts are still subject to further evaluation by the Company.

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