QingSong Health SEHK 2661 Half Year Profit Of ¥86m Tests Bearish Narratives

QingSong Health (SEHK:2661) has released its FY 2025 scorecard with first half revenue of ¥656.1 million and basic EPS of ¥1.07, against a backdrop where trailing 12 month revenue reached ¥1.26 billion and EPS stood at a loss of ¥4.58. Over recent reporting periods, the company has seen revenue move from ¥489.9 million in 2H 2023 to ¥945.0 million in 2H 2024 and up to ¥1.26 billion on a trailing 12 month basis, while EPS shifted from ¥1.21 to ¥0.11 and then to a loss of ¥4.58. For investors, the mix of higher revenue and loss-making EPS puts the focus squarely on how efficiently that top line is being converted into sustainable margins.

See our full analysis for QingSong Health.

With the headline numbers set, the next step is to see how this earnings profile aligns with the prevailing market narratives around QingSong Health and where those stories may need to be updated.

Curious how numbers become stories that shape markets? Explore Community Narratives

TTM revenue growth at 32.9% while profits stay in the red

• Over the trailing 12 months, total revenue reached ¥1,255.9 million, with the dataset showing a 32.9% revenue growth rate even as net income excluding extra items for the same period was a loss of ¥379.7 million.
• Bears focus on the loss-making profile, and the trailing 12 month net loss of ¥379.7 million supports that concern. What stands out in the cautiously bullish narrative is that this growing revenue base is tied to a broad digital health platform, which creates tension between:
  • The scale shown by ¥1,255.9 million in revenue and ¥80.4 million net income excluding extra items in the earlier trailing 12 month snapshot, which fits the idea of a platform gaining traction, and
  • The subsequent swing to a trailing 12 month loss, which gives bearish arguments real weight when they point to the business not yet converting that activity into consistent earnings.

Half year swing from loss to ¥86.0 million profit

• Looking just at recent halves, QingSong Health moved from net income excluding extra items of a ¥5.6 million loss in 2H 2024 to ¥86.0 million in 1H 2025, alongside revenue of ¥589.8 million and ¥656.1 million respectively.
• What cautious bulls highlight is the ability to produce a profitable half within this broader unprofitable year, and that view is partly backed by:
  • EPS moving from a basic loss of ¥0.07 per share in 2H 2024 to basic EPS of ¥1.07 in 1H 2025 on similar sub ¥1b revenue levels, showing the income statement can look quite different from one half to the next, and
  • Earlier periods like 1H 2024 and 2H 2023, which recorded basic EPS of ¥0.18 and ¥1.21 with net income excluding extra items of ¥14.6 million and ¥97.2 million, reminding investors that the business has produced positive EPS in several reporting windows even though the latest trailing 12 month view is a loss.

Rich P/S of 22.6x versus peers

• The stock is trading on a P/S of 22.6x, compared with a Hong Kong healthcare industry average of 0.9x and a peer average of 1.9x, while the share price of HK$156.40 sits far above the DCF fair value estimate of HK$10.24.
• Critics argue this combination reflects very high expectations, and the numbers give their bearish narrative some clear anchors:
  • The trailing 12 month loss of ¥379.7 million means the valuation is being set on revenue and future potential rather than current earnings, which bears see as a risk when that revenue base is already being valued at over 20x sales, and
  • The gap between the HK$156.40 share price and the HK$10.24 DCF fair value in the dataset, alongside the recent share price volatility flagged in the analysis, reinforces the view that any setback in revenue growth or profitability could matter more than usual for holders at this level.

On top of these stretched multiples, many investors will want to compare their own view of fair value with how the cautious and optimistic cases line up for QingSong Health Curious how numbers become stories that shape markets? Explore Community Narratives.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on QingSong Health's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

Given the mix of cautious and optimistic views here, it makes sense to look at the numbers yourself and decide quickly where you stand. You can start with the 1 key reward and 1 important warning sign.

See What Else Is Out There

QingSong Health combines a loss of ¥379.7 million over the trailing 12 months with a rich 22.6x P/S multiple and a share price far above its DCF estimate.

If that mix of losses and a stretched valuation feels uncomfortable, it makes sense to compare with companies priced more modestly by checking out 237 high quality undervalued stocks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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