Guangdong Kanghua Healthcare Co., Ltd. Class H (3689) AI Stock Analysis

• Market Cap: HK$648.72M
• Dividend Yield: N/A
• Average Volume (3M): 97.63K
• Price to Earnings (P/E): 38.8
• Beta (1Y): >-0.01
• Revenue Growth: -1.20%
• EPS Growth: -87.51%
• Country: HK
• Employees: 4,320
• Sector: Healthcare
• Sector Strength: 48
• Industry: Medical - Care Facilities
• EPS (TTM): 0.05
• Shares Outstanding: 84,394,000
• 10 Day Avg. Volume: 3,980
• 30 Day Avg. Volume: 97,626
• PEG Ratio: -0.33
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: HK$2.00 ▲(3.63%Upside)

The overall stock score reflects the strong cash flow and stable balance sheet, counterbalanced by declining profitability and a high P/E ratio. The technical indicators suggest moderate short-term bullish momentum, but the stock faces resistance in the longer term. The lack of a dividend yield further impacts the valuation negatively.

Guangdong Kanghua Healthcare Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Guangdong Kanghua Healthcare Co., Ltd., an investment holding company, primarily operates private hospitals in the People's Republic of China. The company operates through Hospital Services, Rehabilitation and Other Healthcare Services, Sale of Pharmaceutical Products, and Elderly Healthcare Services segments. It provides inpatient and outpatient healthcare, and physical examination services. The company also offers VIP inpatient and outpatient services; assisted reproductive services for couples with infertility disorders; surgical and non-surgical cosmetic treatment options; and laser treatment and skin care services, including acne, acne scarring, stretch marks, and pigmentation treatment, as well as laser hair removal services. In addition, it provides rehabilitation services to patients with physical or mental disabilities; and other healthcare-related services, including elderly care and training service for the disabled, as well as sells pharmaceutical products and medical consumables. Further, the company offers elderly healthcare services, including assisted living, adult daycare, long-term care, residential care, and hospice care to the aged patients. It operates Kanghua Hospital, Renkang Hospital, and Kangxin Hospital. The company was formerly known as Dongguan Kanghua Enterprise Co., Ltd. and changed its name to Guangdong Kanghua Healthcare Co., Ltd. in December 2015. The company was incorporated in 2002 and is headquartered in Dongguan, the People's Republic of China. Guangdong Kanghua Healthcare Co., Ltd. is a subsidiary of Dongguan Kanghua Investment Group Co., Ltd.

How the Company Makes Money

Guangdong Kanghua Healthcare Co., Ltd. generates revenue primarily through the provision of medical services at its hospitals. This includes fees for inpatient and outpatient services, diagnostic tests, and medical procedures. The company also earns from specialized healthcare services such as surgeries, maternity care, and chronic disease management. Additionally, partnerships with insurance companies and government health programs contribute to its revenue by facilitating patient referrals and reimbursements for services provided. The company's ability to maintain high standards of care and expand its hospital network also plays a crucial role in its financial performance.

Guangdong Kanghua Healthcare Co., Ltd. Class H Financial Statement Overview

Summary

Guangdong Kanghua Healthcare Co., Ltd. has strong cash flow performance, which is a positive indicator for liquidity and operational funding. However, declining profit margins and ROE raise concerns about long-term profitability and efficiency. The balance sheet is strong with a solid equity base, but the income statement suggests challenges in maintaining profitability amid rising costs or competitive pressures.

Income Statement

The company exhibits stable revenue with a slight increase from the previous year, indicating consistent growth. Gross profit margin has decreased over the year from 17.84% to 15.65%, suggesting increased costs or competitive pricing pressures. Net profit margin is relatively low at 0.75%, declining from 5.93%, which raises concerns about profitability. The EBIT and EBITDA margins have also decreased, indicating reduced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio remains manageable, indicating a stable capital structure. Return on equity is low at 1.07%, down from 8.50%, which may signal inefficiencies in generating returns for shareholders. The equity ratio stands strong at 52.50%, reflecting a solid equity base supporting the assets.

Cash Flow

The company has a strong free cash flow growth of 163.43%, suggesting robust cash generation capabilities. The operating cash flow to net income ratio is high, indicating strong cash flow relative to net income, enhancing financial flexibility. The free cash flow to net income ratio is also favorable, underscoring efficient cash utilization.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.06B	2.04B	1.85B	1.95B	1.75B
	Gross Profit
321.87M	364.37M	261.35M	352.75M	263.15M
	EBIT
45.91M	121.49M	73.11M	139.74M	-22.16M
	EBITDA
224.86M	305.92M	233.79M	298.46M	138.79M
	Net Income Common Stockholders
15.34M	121.06M	27.74M	66.92M	-50.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
678.40M	718.52M	754.34M	770.34M	584.67M
	Total Assets
2.74B	2.62B	2.72B	2.70B	2.45B
	Total Debt
320.66M	426.58M	429.92M	494.54M	465.82M
	Net Debt
78.05M	121.41M	165.58M	257.19M	286.15M
	Total Liabilities
1.28B	1.13B	1.22B	1.23B	1.05B
	Stockholders Equity
1.44B	1.42B	1.49B	1.43B	1.33B
Cash Flow		Free Cash Flow
193.15M	73.31M	106.20M	162.19M	27.75M
	Operating Cash Flow
280.13M	204.19M	221.40M	333.37M	275.29M
	Investing Cash Flow
-87.33M	-107.72M	-83.16M	-299.33M	-182.15M
	Financing Cash Flow
-251.71M	-55.56M	-110.88M	23.27M	-138.22M

Guangdong Kanghua Healthcare Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3689, the sentiment is Negative. The current price of 1.93 is above the 20-day moving average (MA) of 1.92, below the 50-day MA of 1.93, and below the 200-day MA of 2.11, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.40 is Neutral, neither overbought nor oversold. The STOCH value of 36.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3689.

Guangdong Kanghua Healthcare Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3689	64 Neutral	HK$648.72M	38.76	1.07%	―	-1.20%	-87.51%
Sector *	53 Neutral	$5.24B	3.32	-44.36%	6.63%	16.78%	-0.12%
BJTRF		$891.50M	8.46	12.58%	6.90%	―	―
PANHF		$2.09B	88.16	0.96%	―	―	―
4BQ		€3.28B	5.19	11.99%	4.55%	―	―
9696	56 Neutral	HK$52.37B	―	-8.74%	5.80%	-59.41%	-169.49%
3869	48 Neutral	HK$594.23M	―	-10.78%	―	-0.95%	-128.35%

Guangdong Kanghua Healthcare Co., Ltd. Class H Corporate Events

Guangdong Kanghua Healthcare Enhances Governance with New Nomination Committee

Guangdong Kanghua Healthcare Co., Ltd. has established a Nomination Committee under its Board of Directors to enhance corporate governance and optimize board composition. The committee’s responsibilities include advising on the selection of directors and senior management, ensuring a majority of independent non-executive directors, and maintaining a board skills matrix to support the company’s development strategy.

Guangdong Kanghua Healthcare Approves 2024 AGM Resolutions and Announces Board Changes

Guangdong Kanghua Healthcare Group Co., Ltd. announced the successful passing of all resolutions at its 2024 Annual General Meeting held on June 18, 2025. Key outcomes include the approval of the company’s work and financial reports for 2024, the reappointment of auditors, and the distribution of a final dividend. Additionally, Ms. Lam Shiu Ling Cecilia was appointed as an independent non-executive director. These developments are poised to strengthen the company’s governance and financial stability, potentially enhancing its market position and stakeholder confidence.

Guangdong Kanghua Healthcare Announces Board Composition and Roles

Guangdong Kanghua Healthcare Co., Ltd. has announced the composition of its board of directors and their roles within the company. This announcement outlines the executive, non-executive, and independent non-executive directors, as well as their respective roles in various board committees, which may impact the company’s governance and strategic decision-making processes.

Guangdong Kanghua Healthcare Updates Final Dividend for 2024

Guangdong Kanghua Healthcare Co., Ltd. has announced an update to its final dividend for the year ended December 31, 2024. The dividend declared is RMB 0.15 per share, equivalent to HKD 0.16 per share, with an exchange rate of RMB 1 to HKD 1.0929. The ex-dividend date is set for June 23, 2025, and the payment date is July 25, 2025. The company will withhold a 10% tax on dividends for non-resident individual and enterprise shareholders, reflecting its compliance with relevant tax agreements. This announcement may impact shareholder returns and reflects the company’s commitment to maintaining shareholder value.

Guangdong Kanghua Healthcare Announces 2024 AGM and Key Resolutions

Guangdong Kanghua Healthcare Group Co., Ltd. has announced its 2024 Annual General Meeting, scheduled for June 18, 2025. The meeting will address several key resolutions, including the approval of the 2024 work and financial reports, the re-appointment of auditors, and the appointment of a new independent non-executive director. Additionally, a special resolution will be considered to grant the Board a mandate to issue additional shares, potentially impacting the company’s capital structure and market positioning.

Guangdong Kanghua Healthcare Reports Decline in Profits Despite Revenue Growth

Guangdong Kanghua Healthcare Group Co., Ltd. reported a slight increase in revenue for the year ended December 31, 2024, with a 0.7% rise to RMB2,055.7 million. However, the company experienced a significant decline in profit, with an 88.5% decrease to RMB10.5 million. Earnings per share also fell by 87.3%, and adjusted EBITDA decreased by 21.2%. Despite these challenges, the board recommended a final dividend of RMB15 cents per share, marking a change from the previous year where no dividend was distributed.

Guangdong Kanghua Healthcare Declares Final Dividend for 2024

Guangdong Kanghua Healthcare Co., Ltd. announced a final cash dividend of RMB 0.15 per share for the year ending December 31, 2024. This decision reflects the company’s commitment to returning value to its shareholders and may influence investor sentiment positively. The dividend will be approved on June 18, 2025, with the payment date set for July 25, 2025, indicating a structured approach to shareholder returns.