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Guangdong Kanghua Healthcare Co., Ltd. Class H (HK:3689)
:3689
Hong Kong Market

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

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HK:3689

Guangdong Kanghua Healthcare Co., Ltd. Class H

(3689)

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Outperform 71 (OpenAI - 5.2)
Rating:71Outperform
Price Target:
HK$2.00
▲(16.28% Upside)
Action:UpgradedDate:10/16/25
The overall stock score of 71 reflects a strong valuation with a low P/E ratio and high dividend yield, making it attractive for value and income investors. However, technical indicators suggest some caution due to bearish momentum. Financial performance is mixed, with strong cash flow but declining profitability margins, which could impact long-term growth.
Positive Factors
Free cash flow strength
163.43% free cash flow growth indicates robust cash conversion from operations, improving liquidity and funding capacity for capex, dividends, or debt reduction. Durable cash generation strengthens financial flexibility and supports strategic investments over the medium term.
Negative Factors
Falling profit margins
Gross and net margin erosion points to rising costs or pricing pressure; net margin collapsing to 0.75% materially weakens retained earnings. Persistent margin decline undermines reinvestment capacity, reduces buffer for shocks, and hampers sustainable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow strength
163.43% free cash flow growth indicates robust cash conversion from operations, improving liquidity and funding capacity for capex, dividends, or debt reduction. Durable cash generation strengthens financial flexibility and supports strategic investments over the medium term.
Read all positive factors

Guangdong Kanghua Healthcare Co., Ltd. Class H (3689) vs. iShares MSCI Hong Kong ETF (EWH)

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 Ph...
How the Company Makes Money
Guangdong Kanghua Healthcare generates revenue through multiple streams, including the sale of pharmaceuticals, medical devices, and health management services. The company's pharmaceutical division focuses on developing and marketing prescription...

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

Summary
Guangdong Kanghua Healthcare Co., Ltd. demonstrates solid cash flow performance, indicating strong 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
65
Positive
Balance Sheet
72
Positive
Cash Flow
78
Positive
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.05B2.06B2.04B1.85B1.95B1.75B
Gross Profit334.01M321.87M364.37M261.35M352.75M263.15M
EBITDA256.12M224.86M305.92M233.79M298.46M138.79M
Net Income76.52M15.34M121.06M59.70M94.31M-25.37M
Balance Sheet
Total Assets2.78B2.74B2.62B2.72B2.70B2.45B
Cash, Cash Equivalents and Short-Term Investments791.85M678.40M718.52M754.34M770.34M584.67M
Total Debt445.48M320.66M426.58M429.92M494.54M465.82M
Total Liabilities1.32B1.28B1.13B1.22B1.23B1.05B
Stockholders Equity1.45B1.44B1.42B1.49B1.43B1.33B
Cash Flow
Free Cash Flow340.37M193.15M73.31M106.20M162.19M27.75M
Operating Cash Flow378.11M280.13M204.19M221.40M333.37M275.29M
Investing Cash Flow-48.17M-87.33M-107.72M-83.16M-299.33M-182.15M
Financing Cash Flow-76.14M-251.71M-55.56M-110.88M23.27M-138.22M

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

Technical Analysis Sentiment
Positive
Last Price1.72
Price Trends
50DMA
1.86
Positive
100DMA
1.86
Positive
200DMA
1.90
Positive
Market Momentum
MACD
0.05
Positive
RSI
56.83
Neutral
STOCH
8.97
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3689, the sentiment is Positive. The current price of 1.72 is below the 20-day moving average (MA) of 2.02, below the 50-day MA of 1.86, and below the 200-day MA of 1.90, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 56.83 is Neutral, neither overbought nor oversold. The STOCH value of 8.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3689.

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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$356.42M4.984.28%7.10%-2.88%-22.83%
71
Outperform
HK$678.82M3.305.29%9.14%0.47%50.46%
56
Neutral
HK$545.87M5.0031.63%2.30%
54
Neutral
HK$263.57M-2.55-25.22%3.16%-21.31%-149.92%
52
Neutral
HK$311.23M4.113.54%3.75%9.07%8.95%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
51
Neutral
HK$936.00M-275.871.85%-13.22%-69.35%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3689
Guangdong Kanghua Healthcare Co., Ltd. Class H
2.03
0.21
11.54%
HK:9906
Honliv Healthcare Management Group Co Ltd
1.56
0.02
1.30%
HK:1419
Human Health Holdings Ltd.
0.82
0.10
13.89%
HK:1518
New Century Healthcare Holding Co. Ltd.
0.54
-0.59
-52.21%
HK:3869
Hospital Corporation of China Ltd
3.95
-2.85
-41.91%
HK:0722
UMP Healthcare Holdings Limited
0.45
0.08
20.92%

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

Guangdong Kanghua Healthcare Calls March EGM to Approve 2026 Hospital and Elderly Care Leases
Feb 3, 2026
Guangdong Kanghua Healthcare Group Co., Ltd. has convened an extraordinary general meeting for 3 March 2026 in Dongguan to seek shareholder approval for a series of 2026 lease agreements covering Kanghua Hospital, Renkang Hospital and the Renkang ...
Guangdong Kanghua Healthcare Further Delays Circular on 2026 Lease Deals
Jan 30, 2026
Guangdong Kanghua Healthcare Group has announced a further delay in sending a shareholder circular related to its 2026 lease agreements, which are categorized as major and connected transactions under Hong Kong listing rules. The circular, origina...
Guangdong Kanghua Healthcare Delays Circular on 2026 Lease Transactions
Jan 14, 2026
Guangdong Kanghua Healthcare Group Co., Ltd. has announced a delay in the dispatch of a shareholder circular related to its 2026 lease agreements, which constitute major and connected transactions under Hong Kong listing rules. The circular, origi...
Guangdong Kanghua Healthcare Secures New Leases for Key Hospitals in Major Connected Deal
Dec 22, 2025
Guangdong Kanghua Healthcare Group has entered into new 2026 lease agreements to secure continued use of the properties housing Kanghua Hospital and Renkang Hospital for three years from 1 January 2026 to 31 December 2028, following the expiry of ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 16, 2025