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.