Pomdoctor (POM) Losses Persist as Price-to-Sales Premium Tests Bullish Scaling Narrative

Pomdoctor (POM) opened H1 2025 with revenue of CNY 192.4 million and basic EPS of CNY -1.49, while the latest trailing twelve month figures show revenue of CNY 342.6 million and EPS of CNY -3.79. The company has seen revenue move from CNY 177.0 million in H2 2023 to CNY 192.4 million in H2 2024, with net income excluding extra items shifting from CNY -71.3 million to CNY -76.6 million over the same period, setting up a story where investors are weighing top line momentum against still negative margins.

See our full analysis for Pomdoctor.

With the headline numbers on the table, the next step is to see how this mix of growing revenue and persistent losses lines up with the key narratives investors have been trading on over the past year.

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

Losses Shrink Faster Than Revenue Grows

• Over the last five years, POM has reduced its losses by about 15.9% per year even though the latest trailing twelve month net loss is still CNY 143.4 million on CNY 342.6 million in revenue.
• What stands out for the more optimistic view is that this multi year loss reduction sits alongside revenue that has moved from CNY 304.9 million to CNY 342.6 million over the trailing twelve month periods. This supports an argument that the business model can scale, yet:
  • EPS on a trailing basis is still a negative CNY 3.79, so those with a bullish view would generally want that loss reduction trend to continue before the story appears to offer a clearer path to profitability.
  • Net income excluding extra items has barely shifted over the last two trailing snapshots, hovering around a negative CNY 145 million to CNY 143.4 million, so the more optimistic case relies more on the long run five year trend than on a sharp recent turnaround.

Over five years of narrowing losses and a still sizable CNY 143.4 million trailing loss leave plenty of room for debate about how quickly POM can turn its healthtech story into sustainable profits. 📊 Read the full Pomdoctor Consensus Narrative.

Negative Equity Puts Balance Sheet In Focus

• The risk analysis flags negative shareholders’ equity over the trailing twelve months, which sits alongside a trailing net loss of CNY 143.4 million and basic EPS of CNY negative 3.79.
• Some more cautious investors argue that a balance sheet with negative equity and ongoing losses can limit strategic flexibility, and the numbers highlight that concern in several ways:
  • Even as revenue over the trailing twelve months reaches CNY 342.6 million, the company has not yet generated positive net income in any of the reported semi annual periods, with H2 2024 net income excluding extra items at negative CNY 76.6 million.
  • The presence of both negative equity and continued semi annual losses means balance sheet strength can be viewed as a central issue rather than a secondary concern, especially if more capital is needed to fund the platform model.

11.5x Price To Sales Demands Execution

• POM trades at a price to sales ratio of 11.5 times, significantly higher than the 1.3 times average for the broader US Healthcare industry but lower than the 24.9 times peer group average, with a current share price of CNY 4.72.
• Critics highlight that paying an 11.5 times sales multiple for a company that is still loss making requires confidence in future scaling, and the current numbers set up a clear tension here:
  • On one side, the semi annual revenue line has risen from CNY 150.2 million in H1 2024 to CNY 192.4 million in H2 2024, which can be used to support a growth style valuation despite losses.
  • On the other side, the latest trailing figures still show net income excluding extra items at negative CNY 143.4 million, so the elevated multiple versus the industry leaves limited room if revenue growth slows or loss reduction stalls.

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 Pomdoctor'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.

See What Else Is Out There

POM is still posting sizable losses on a weak balance sheet while trading at a rich sales multiple that demands flawless execution.

If you would rather back businesses with stronger cushions and fewer solvency worries, use our solid balance sheet and fundamentals stocks screener (1940 results) today to focus on companies built on sturdier financial foundations.

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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