Executive Summary
Qing Song Health CoLtd delivered a solid top-line performance in QQ3 2024, with revenue of 254.603 million TWD, up 10.5% year-over-year and 7.99% sequentially. The gross margin stood at 13.20% (33.616 million TWD gross profit), with operating income of 12.642 million and an operating margin of 4.97%, reflecting continued efficiency gains offset by higher operating costs and structured capex. Net income declined to 7.653 million (net margin 3.01%), down 53.3% year-over-year, underscoring profitability pressures despite improving quarterly revenue. EPS was 0.13 TWD, flat across the reported share base, signaling modest earnings dispersion within the quarter.
From a balance sheet and cash flow perspective, Qing Song maintains a liquid balance sheet with cash and cash equivalents of 223.149 million and total liquidity that includes short-term investments of 148.151 million, yielding total cash and equivalents around 371.3 million if combined. However, total debt sits at 1.111 billion (long-term debt 1.000 billion and short-term debt 111.132 million), producing a net debt position of approximately 888.376 million and a debt-to-equity ratio of about 1.73. The company reported negative net operating cash flow of 10.742 million, driven by working capital outflows and non-cash adjustments, resulting in negative free cash flow of 32.065 million for the period. EBITDA was 49.823 million with an EBITDA margin of approximately 19.6%, indicating cash-based profitability even as cash flow remains pressured. Look-for in coming quarters: continued occupancy trends, wage inflation pressures, and the ability to deleverage while funding capex for capacity expansion.
Management commentary for QQ3 2024 is not available in the provided transcript, limiting the ability to cite specific quotes or explicit forward guidance. Given the sector backdrop—Taiwan’s aging population and rising demand for long-term care—Qing Song is positioned to benefit from secular demand, albeit with near-term profitability and liquidity challenges tied to high leverage and capex intensity.
Key Performance Indicators
QoQ: 29.83% | YoY:-33.17%
QoQ: -19.96% | YoY:-53.28%
QoQ: -18.75% | YoY:-51.85%
Key Insights
Revenue performance: 254.603 million TWD in QQ3 2024, YoY +10.51%, QoQ +7.99%. Gross Profit: 33.616 million TWD, YoY -2.12%, QoQ +21.02%, Gross Margin 13.2033%. Operating Income: 12.642 million TWD, YoY -33.17%, QoQ +29.83%, Operating Margin 4.97%. Net Income: 7.653 million TWD, YoY -53.28%, QoQ -19.96%, Net Margin 3.01%. EPS: 0.13 TWD, YoY -51.85%, QoQ -18.75%. EBITDA: 49.823 million TWD, EBITDA Margin 19.56%. Cash Flow: Net cash from operating activities -10.742 million TWD; Capex -21.323 mill...
Financial Highlights
Revenue performance: 254.603 million TWD in QQ3 2024, YoY +10.51%, QoQ +7.99%. Gross Profit: 33.616 million TWD, YoY -2.12%, QoQ +21.02%, Gross Margin 13.2033%. Operating Income: 12.642 million TWD, YoY -33.17%, QoQ +29.83%, Operating Margin 4.97%. Net Income: 7.653 million TWD, YoY -53.28%, QoQ -19.96%, Net Margin 3.01%. EPS: 0.13 TWD, YoY -51.85%, QoQ -18.75%. EBITDA: 49.823 million TWD, EBITDA Margin 19.56%. Cash Flow: Net cash from operating activities -10.742 million TWD; Capex -21.323 million TWD; Free cash flow -32.065 million TWD. Balance Sheet health: Total assets 1,942.793 million TWD; total liabilities 1,268.885 million TWD; total equity 641.571 million TWD. Liquidity and leverage: Current ratio 1.978, Quick ratio 1.976, Cash ratio 0.973; Total debt 1,111.525 million TWD; Net debt 888.376 million TWD; Interest coverage 2.21x. Valuation context: P/E 194.23x, P/B 9.27x, P/S 23.35x, EV/EBITDA 137.17x; Dividend yield 0.0891%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
254.60M |
10.51% |
7.99% |
| Gross Profit |
33.62M |
-2.12% |
21.02% |
| Operating Income |
12.64M |
-33.17% |
29.83% |
| Net Income |
7.65M |
-53.28% |
-19.96% |
| EPS |
0.13 |
-51.85% |
-18.75% |
Key Financial Ratios
operatingProfitMargin
4.97%
operatingCashFlowPerShare
$-0.18
freeCashFlowPerShare
$-0.55
dividendPayoutRatio
69.2%
priceEarningsRatio
194.23
Management Commentary
Note: No earnings call transcript was provided for QQ3 2024. As a result, management quotes, thematic commentary, and forward-looking guidance could not be extracted from the document. The analysis relies on the disclosed financials and ratio data. If a transcript were available, expected themes would include: strategy execution (capacity utilization and service mix), operating efficiency (cost controls and labor management), market conditions (occupancy trends and patient mix), and capital allocation (debt management and capex planning).
Forward Guidance
No explicit forward guidance was provided in the supplied data. Based on sector dynamics and the QQ3 2024 results, the plausible trajectory includes moderate revenue growth supported by aging demographics and service mix with ongoing margin pressures from labor costs and capex. Investors should monitor: (i) occupancy and payer mix, (ii) wage inflation and staffing strategies, (iii) capex intensity and its impact on free cash flow, (iv) debt maturities and refinancing risk, and (v) potential changes in reimbursement or regulation that could affect margins. Management would likely frame targets around occupancy stabilization, cost-to-serve optimization, and debt deleveraging over the next 6–12 quarters.