Investment Value Analysis Report of International Medical (000516)

Recently, the brain-computer interface (BCI) concept has been heavily hyped in the A-share market. International Medical’s stock price has fluctuated sharply as it was included in the related concept sector by investors. The company issued a clarification announcement in January 2026 [1], clearly stating:

1. Main Business Positioning
   : The company’s main business focuses on large health medical services and the transformation and application of modern medical technologies [1]
2. BCI-related Business
   : The company is not currently involved in the R&D, production, or sales of BCI products [1]
3. Proportion of Related Revenue
   : The revenue from BCI-related rehabilitation training systems and surgeries applied by the company’s medical institutions accounts for an extremely small proportion of the company’s operating revenue, having basically no impact on performance [1]
4. Research Activities
   : In the BCI field, the company has only carried out related subject research, accumulated a certain number of case samples, conducted data analysis, and participated in academic conference exchanges [2]

---

Institution Name	2024 Operating Revenue	Net Profit	Business Highlights
Xi’an High-tech Hospital	RMB 1.525 billion	RMB 84.7688 million	Grade III Class A hospital; re-evaluation work initiated; multiple specialized centers newly established
Xi’an International Medical Center Hospital (including North Campus)	Approximately RMB 3.5 billion	-RMB 261 million	Rapid business scale expansion; remarkable results in Grade III Class A hospital establishment

According to the latest data [3][4]:

• 2023
  : The company achieved operating revenue of RMB 4.618 billion, a year-on-year increase of 70.34%
• Outpatient and Emergency Service Volume
  : 2.3887 million visits, a year-on-year increase of 54.4%
• Inpatient Service Volume
  : 185,900 admissions, a year-on-year increase of 70.8%
• Growth Continued in 2024
  : Xi’an High-tech Hospital’s revenue increased by 2.68%; Xi’an International Medical Center Hospital’s outpatient and emergency volume increased by 18.88%, and inpatient volume increased by 15.32%

---

Indicator	Value	Evaluation
P/E Ratio	-41.29x	Loss-making status, no positive earnings
Net Profit Margin	-7.98%	Still in a loss-making state, but losses continue to narrow
ROE	-9.56%	Negative return for shareholders
Gross Profit Margin (Estimated)	~25%	Medium level in the medical service industry

: In 2023, the net profit attributable to parent shareholders was -RMB 368 million, a year-on-year reduction in losses of 68.70%; the non-recurring net profit was -RMB 499 million, a reduction in losses of 55.55% [3]

Risk Dimension	Indicator	Assessment
Debt Risk	Asset-liability ratio of approximately 52%	Medium-high risk
Liquidity	Current ratio 0.27, quick ratio 0.25	High Risk
Cash Flow	Operating cash flow improved significantly in 2023	Positive signal

• Revenue Growth Rate
  : The revenue growth rate reached 70.34% in 2023, mainly benefiting from the expansion of medical business scale [3]
• Business Synergy
  : The “comprehensive medical care + specialized departments” model is gradually maturing
• Medical Consortium Construction
  : Established cooperation with 111 medical consortium member units and 107 specialized alliances [4]

---

Time Period	Increase	Risk Warning
1 Day	+9.95%	Abnormal fluctuation
5 Days	+24.05%	Severe deviation from fundamentals
1 Month	+35.15%	Extremely high speculation risk
YTD	+31.14%	Valuation bubble risk

Indicator	Value	Signal Interpretation
KDJ	K:82.0, D:67.6, J:110.7	Overbought Warning
RSI	Overbought risk zone	Short-term pullback pressure
MACD	Bullish bias but no crossover signal	Neutral
Beta	0.52	Low correlation with the market

:

• Support Level
  : RMB 5.06
• Resistance Level
  : RMB 6.19
• Next Target
  : RMB 6.43

---

Evaluation Dimension	Score (1-10)	Explanation
Main Business Growth	7	Continued expansion of medical business scale
Profitability Improvement Expectation	6	Losses narrowing, but inflection point not yet reached
Valuation Rationality	3	Stock price severely deviates from fundamentals
Financial Risk	4	Relatively high liquidity pressure
Concept Speculation Risk	2	Excessive short-term increase

: [1]

• The stock price has severely deviated from fundamentals; with a negative P/E ratio, it has risen sharply due to concept speculation
• Technical indicators show overbought conditions, with extremely high short-term pullback risk
• The company has issued an abnormal fluctuation announcement to warn of risks [1]

:

• The main business has long-term growth logic (growing medical demand + scale effect)
• Losses continue to narrow, with expected further improvement in 2024
• May consider positioning after valuation returns to rational levels

:

• Stable leading position in the Xi’an medical service market
• Remarkable results in specialized department construction
• Beneficiary of medical consortium and hierarchical diagnosis and treatment policies

---

1. Concept Speculation Risk
   : BCI-related revenue accounts for an extremely small proportion, with negligible contribution to performance [1]
2. Liquidity Risk
   : Current ratio is only 0.27, with relatively high short-term debt repayment pressure
3. Valuation Regression Risk
   : The current stock price increase deviates from fundamentals
4. Industry Policy Risk
   : Impacts from medical anti-corruption and DRG/DIP payment reforms

---

Investor Type	Recommendation
Short-term Speculators	Avoid; wait for valuation to return to rational levels
Value Investors	May consider small-position layout after the stock price pulls back below RMB 5
Institutional Investors	It is recommended to focus on the improvement of the main business fundamentals

: The actual investment value of International Medical lies in the long-term growth potential of its large health medical service main business, rather than the BCI concept. The current stock price has severely deviated from fundamentals due to concept speculation. Investors should make rational decisions, treat short-term fluctuations with caution, and focus on the company’s actual operating improvements.

---

[1] Investing.com - International Medical Abnormal Fluctuation Announcement (https://cn.investing.com/news/stock-market-news/article-3165579)

[2] 10jqka Interactive Platform - Reply from International Medical’s Board Secretary (https://news.10jqka.com.cn/hudong/)

[3] Soochow Securities Research Institute - International Medical Business Analysis Report (http://pdf.dfcfw.com/pdf/H3_AP202405091632786106_1.pdf)

[4] Sina Finance - Abstract of International Medical 2024 Annual Report (http://money.finance.sina.com.cn/corp/view/vCB_AllBulletinDetail.php?stockid=000516&id=10935298)

[5] Xinhua News Agency - Institutions Focus on Hot Fields such as BCI in Early-Year Research (http://www.xinhuanet.com/20260114/ea8a0344086d47c4b3a39a96f10a9a2a/c.html)