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Guangdong Kanghua Healthcare Co., Ltd. Class H (HK:3689)
:3689
Hong Kong Market
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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 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
HK$2.00
▼(-6.10% Downside)
The overall stock score of 70.4 reflects strong cash flow performance and positive technical indicators, which are significant strengths. However, concerns about declining profit margins and a high P/E ratio, indicating potential overvaluation, weigh on the score. The attractive dividend yield provides a positive offset, enhancing the stock's appeal for income-focused investors.

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 DescriptionGuangdong Kanghua Healthcare Co., Ltd. is a leading player in the healthcare industry, primarily focused on the research, development, and production of high-quality medical devices and healthcare products. The company operates in several sectors, including medical imaging, diagnostics, and rehabilitation equipment, catering to both domestic and international markets. Its core offerings include advanced medical instruments, health monitoring devices, and innovative solutions aimed at improving patient care and outcomes.
How the Company Makes MoneyGuangdong Kanghua Healthcare generates revenue through multiple streams, primarily by selling its medical devices and healthcare products to hospitals, clinics, and healthcare facilities. The company benefits from strong demand for its products due to the growing emphasis on healthcare quality and efficiency. Additionally, it may engage in long-term contracts with healthcare institutions, which provide a stable source of income. Key partnerships with research institutions and collaborations with technology firms also enhance its product offerings, helping to drive sales. The company may also explore export opportunities, broadening its market reach and contributing to its earnings.

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 return on equity raise concerns about long-term profitability and efficiency. A strong equity base supports the company's assets, yet challenges persist in maintaining profitability due to rising costs or competitive pressures.
Income Statement
65
Positive
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
72
Positive
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
78
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.06B2.04B1.85B1.95B1.75B
Gross Profit321.87M364.37M261.35M352.75M263.15M
EBITDA224.86M305.92M233.79M298.46M138.79M
Net Income15.34M121.06M27.74M66.92M-50.06M
Balance Sheet
Total Assets2.74B2.62B2.72B2.70B2.45B
Cash, Cash Equivalents and Short-Term Investments678.40M718.52M754.34M770.34M584.67M
Total Debt320.66M426.58M429.92M494.54M465.82M
Total Liabilities1.28B1.13B1.22B1.23B1.05B
Stockholders Equity1.44B1.42B1.49B1.43B1.33B
Cash Flow
Free Cash Flow193.15M73.31M106.20M162.19M27.75M
Operating Cash Flow280.13M204.19M221.40M333.37M275.29M
Investing Cash Flow-87.33M-107.72M-83.16M-299.33M-182.15M
Financing Cash Flow-251.71M-55.56M-110.88M23.27M-138.22M

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

Technical Analysis Sentiment
Positive
Last Price2.13
Price Trends
50DMA
1.96
Positive
100DMA
1.87
Positive
200DMA
1.89
Positive
Market Momentum
MACD
0.07
Negative
RSI
61.89
Neutral
STOCH
73.63
Neutral
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 2.13 is above the 20-day moving average (MA) of 2.07, above the 50-day MA of 1.96, and above the 200-day MA of 1.89, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 61.89 is Neutral, neither overbought nor oversold. The STOCH value of 73.63 is Neutral, 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
78
Outperform
400.47M12.560.00%6.80%-2.88%-21.65%
70
Outperform
HK$712.26M8.635.33%7.51%0.47%50.46%
64
Neutral
341.67M-7.318.55%3.16%-21.31%-149.92%
58
Neutral
900.00M72.825.44%-13.22%-69.35%
55
Neutral
390.94M18.630.00%2.72%-0.69%0.00%
48
Neutral
939.72M6.460.00%2.30%0.00%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3689
Guangdong Kanghua Healthcare Co., Ltd. Class H
2.13
-0.07
-3.18%
HK:9906
Honliv Healthcare Management Group Co Ltd
1.50
-0.54
-26.47%
HK:1419
Human Health Holdings Ltd.
1.00
0.14
16.28%
HK:1518
New Century Healthcare Holding Co. Ltd.
0.70
-0.08
-10.26%
HK:3869
Hospital Corporation of China Ltd
6.80
3.00
78.95%
HK:0722
UMP Healthcare Holdings Limited
0.50
0.10
25.00%

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

Guangdong Kanghua Healthcare Enhances Governance with New Nomination Committee
Jun 18, 2025

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
Jun 18, 2025

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
Jun 18, 2025

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
Jun 18, 2025

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.

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: Aug 20, 2025