160 HEALTH's stock fell 6.46% intraday on Friday, as investors reacted to concerns over the company's valuation and profitability metrics.

The decline follows the company's annual results which showed revenue growth of 5.02% year-over-year to 652 million yuan, with net losses narrowing to 72.99 million yuan. However, the core medical health products segment carries a gross margin of only around 1.4%, indicating structural profitability challenges relative to its market capitalization of approximately 15.75 billion HKD.

Market analysts point to significant valuation pressure with the stock's price-to-book ratio at roughly 51.77x and price-to-sales at approximately 18.98x. Despite an ongoing share buyback program and a recent rebound after earnings, market sentiment remains cautious with trading volume at subdued levels. The stock had previously surged over 1,200% from its listing price to a peak before entering a sustained correction phase.