Exchange: TWO | Sector: Healthcare | Industry: Medical Care Facilities
Q2 2025
Published: Jun 30, 2025
Earnings Highlights
Revenue of $564.77M up 139.5% year-over-year
EPS of $0.72 increased by 350% from previous year
Gross margin of 13.2%
Net income of 47.37M
"N/A" - N/A
Qing Song Health CoLtd (6931.TWO) QQ2 2025 Results – Revenue Growth, Margin Expansion, and Solid Balance Sheet
Executive Summary
Qing Song Health CoLtd delivered a strong QQ2 2025 performance, underpinned by a pronounced uplift in revenue and a meaningful improvement in profitability metrics. For the quarter ended 2025-06-30, revenue rose to 564.774 million TWD, up 139.5% year over year, supported by higher patient volumes and operating leverage in the long-term care services segment. Gross profit reached 74.6 million, yielding a gross margin of 13.21%, while EBITDA stood at 55.36 million and the company reported an operating income of 30.76 million with an 5.45% operating margin. Net income was 47.37 million (net margin 8.39%), resulting in earnings per share (EPS) of 0.72.
The quarter marked a recovery in earnings momentum following a negative net income in the prior period (Q1 2025 saw net income of -3.59 million), demonstrating improved cost control, favorable mix, and continued expense discipline. Notably, liquidity remained robust, with a current ratio of 3.79, a cash ratio of 2.75, and cash per share of 10.56 TWD. The balance sheet shows moderate leverage (debt ratio 0.466, debt/equity 1.06) and a healthy interest coverage of 2.42x, supporting ongoing investment in capacity and service quality.
From a valuation perspective, the stock trades at ~P/E 17.99 and ~P/BV 3.13, with solid cash flow indicators (operating cash flow per share 0.99; free cash flow per share 0.51), suggesting the market prices in a growth and risk-adjusted premium given the sector dynamics and Taiwan's aging population. Management did not issue explicit forward targets in the provided materials; investors should monitor occupancy trends, reimbursement policy developments, labor costs, and capex needs as key drivers of mid-cycle profitability.
Key Performance Indicators
Revenue
564.77M
QoQ: 0.00% | YoY:139.54%
Gross Profit
74.60M
13.21% margin
QoQ: 0.00% | YoY:168.56%
Operating Income
30.76M
QoQ: 0.00% | YoY:215.91%
Net Income
47.37M
QoQ: 0.00% | YoY:395.43%
EPS
0.72
QoQ: 0.00% | YoY:350.00%
Revenue Trend
Margin Analysis
Key Insights
Revenue: 564,774,000 TWD; YoY growth: 139.5%; QoQ growth: 0.0% (as reported in the dataset)
Key quarterly metrics for QQ2 2025:
- Revenue: 564,774,000 TWD; YoY growth: 139.5%; QoQ growth: 0.0% (as reported in the dataset)
- Gross Profit: 74,600,000 TWD; Gross Margin: 13.21%
- Operating Income: 30,762,000 TWD; Operating Margin: 5.45%
- EBITDA: 55,362,000 TWD; EBITDA Margin: 9.80%
- Net Income: 47,368,000 TWD; Net Margin: 8.39%
- Earnings Per Share (EPS): 0.72 TWD; Diluted EPS: 0.72 TWD; Weighted average shares: 65,788,888
- Interest Expense: 12,704,000 TWD; Depreciation & Amortization: 24,600,000 TWD
- Balance sheet/liquidity: Current Ratio 3.79; Quick Ratio 3.79; Cash Ratio 2.75; Cash per share 10.56 TWD
- Leverage and coverage: Debt Ratio 0.466; Debt/Equity 1.060; Interest Coverage 2.42
- Cash flow indicators: Operating Cash Flow per Share 0.987; Free Cash Flow per Share 0.510; Cash Flow to Debt Ratio 0.0563; Capex Coverage Ratio 2.07
- Valuation (on 2025 QQ2 numbers): Price-to-Earnings 17.99; Price-to-Book 3.13; Price-to-Sales 6.03; Price-to-FCF 101.48
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
564.77M
139.54%
0.00%
Gross Profit
74.60M
168.56%
0.00%
Operating Income
30.76M
215.91%
0.00%
Net Income
47.37M
395.43%
0.00%
EPS
0.72
350.00%
0.00%
Key Financial Ratios
currentRatio
3.79
grossProfitMargin
13.2%
operatingProfitMargin
5.45%
netProfitMargin
8.39%
returnOnAssets
1.91%
returnOnEquity
4.35%
debtEquityRatio
1.06
operatingCashFlowPerShare
$0.99
freeCashFlowPerShare
$0.51
priceToBookRatio
3.13
priceEarningsRatio
17.99
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript highlights not available in the provided data. No earnings call transcript or management quotes were supplied for QQ2 2025. Therefore, no theme-by-theme transcript synthesis can be performed from the dataset. N/A
N/A
— N/A
N/A
— N/A
Forward Guidance
No explicit forward guidance was published in the provided materials for QQ2 2025. In the absence of formal targets, the outlook hinges on underlying sector trends and company-specific drivers observed in the quarter: (1) demand for long-term care services in Taiwan remains supported by an aging population and evolving care preferences; (2) the reported margin improvement suggests operating leverage as volumes scale and fixed-cost absorption improves; (3) balance sheet strength affords capex to grow capacity and improve service mix. Investors should monitor occupancy trends, payer mix and reimbursement environment, wage and personnel costs, and any capex plans that could affect near-term cash flow. Given current liquidity and modest leverage, Qing Song Health is positioned to pursue selective capacity expansion or acquisitions if earnings visibility remains constructive.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
6931.TWO Focus
13.21%
5.45%
4.35%
17.99%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Assessment: Positive near-term momentum supported by tangible revenue growth and margin expansion, coupled with a strong balance sheet and cash generation. The absence of explicit forward guidance introduces some execution risk, but the resilience of cash flows and modest leverage provide a solid platform for capacity expansion and continued service quality improvements. Given the current multiples (P/E ~18x, P/B ~3.13x, P/S ~6.03x) and robust free cash flow indicators, Qing Song Health appears to offer an attractive risk-adjusted exposure to Taiwan’s aging population within the healthcare facilities segment. Investors should monitor occupancy levels, reimbursement policy developments, and capex plans for capacity growth as the key drivers of sustained earnings trajectory.
Key Investment Factors
Growth Potential
Strong top-line growth in QQ2 2025 (YoY revenue up 139.5%), improving EBITDA and net margins indicating operational leverage. Healthy cash generation and a debt position that supports capacity expansion while maintaining financial flexibility.
Profitability Risk
No disclosed forward guidance; reliance on Taiwan’s regulatory and reimbursement framework, potential wage pressures and labor availability in the healthcare sector, and competition from other care facilities. Limited peer comparables in the dataset complicate relative benchmarking. Currency and macroeconomic factors are less material domestically but still relevant to reimbursement dynamics.
Financial Position
Solid liquidity metrics (Current 3.79x, Cash Ratio 2.75x) and manageable leverage (Debt Ratio 0.466, Debt/Equity 1.06). Positive free cash flow trends (FCF per share 0.51) and strong cash per share (10.56) support ongoing investment in capacity and service quality. No dividend payout was indicated (Dividend Payout Ratio 0).
SWOT Analysis
Strengths
Robust revenue growth in QQ2 2025: 564.774 million TWD revenue with 13.21% gross margin and 8.39% net margin.
Significant profitability acceleration: Net income up to 47.37 million and EBITDA of 55.36 million with margins improvement.
Strong liquidity profile: Current ratio 3.79, cash ratio 2.75, cash per share 10.56 TWD, and solid cash generation metrics.
Conservative leverage with reasonable coverage: Debt ratio 0.466 and interest coverage 2.42x.
Weaknesses
Intermittent profitability with quarterly variability (Q1 2025 showed negative net income; Q2 reversed this but quarterly earnings can still be cyclical).
No explicit guidance or targets published for FY2025 or beyond in the provided materials.
No disclosed dividend policy (dividend payout ratio 0), which may impact income-focused investors seeking yield.
Opportunities
Demographic tailwinds in Taiwan enhancing long-term care demand, creating potential occupancy and pricing power.
Capacity expansion and selective acquisitions could drive next leg of growth given strong balance sheet and cash flow.
Operational efficiency gains and potential optimization of payer mix could sustain margin expansion.
Threats
Regulatory risk and changes in reimbursement frameworks for long-term care in Taiwan.
Labor costs and availability in the healthcare sector, including nurse and caregiver staffing pressures.
Limited public peer benchmarks in the dataset; reliance on internal metrics may make external benchmarking more challenging.
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