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Town Health International Medical Group Ltd. (HK:3886)
:3886
Hong Kong Market
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Town Health International Medical Group Ltd. (3886) AI Stock Analysis

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HK

Town Health International Medical Group Ltd.

(3886)

Rating:61Neutral
Price Target:
HK$0.50
▲(108.33%Upside)
Town Health International Medical Group Ltd. faces significant profitability challenges, reflected in its negative P/E ratio and pressured margins. Despite these challenges, the company's balance sheet and liquidity position are relatively strong. Technical indicators point to potential short-term bullish momentum, while the high dividend yield provides some support. Valuation concerns due to unprofitability weigh heavily on the overall score.

Town Health International Medical Group Ltd. (3886) vs. iShares MSCI Hong Kong ETF (EWH)

Town Health International Medical Group Ltd. Business Overview & Revenue Model

Company DescriptionTown Health International Medical Group Limited, an investment holding company, invests in, manages, and provides healthcare and related services in the People's Republic of China and Hong Kong. The company operates through Hong Kong Medical Services; Hong Kong Managed Medical Network Business; Mainland Hospital Management and Medical Services; and Others segments. It provides cross-border healthcare, managed care business, medical diagnostic, health check, and ophthalmic medical services; and third-party medical network administrator services. The company also offers medical healthcare and dental consultation, property investment, and medical tourism services. In addition, it trades in listed securities; leases properties; offers beauty and cosmetic medical, laboratory, hospital management, eye care, and business and corporate advisory services. Further, the company engages in the trading of medical equipment and medicines. As of December 31, 2021, it had 454 healthcare service points covering multiple practices, including 259 general practice service points, 75 specialist service points, 23 dental service points, and 97 auxiliary service points. The company was formerly known as Town Health International Investments Limited and changed its name to Town Health International Medical Group Limited in March 2014. Town Health International Medical Group Limited was founded in 1989 and is headquartered in Shatin, Hong Kong.
How the Company Makes MoneyTown Health International Medical Group Ltd. generates revenue primarily through the operation of its medical centers, where it provides a variety of healthcare services. The company's key revenue streams include fees charged for medical consultations, diagnostic tests, and health assessments. Town Health also partners with insurers and corporate clients to offer tailored healthcare packages, further contributing to its income. Additionally, the company may engage in collaborations or joint ventures with other healthcare entities to expand its service offerings and reach, thereby enhancing its profitability.

Town Health International Medical Group Ltd. Financial Statement Overview

Summary
The company shows moderate revenue growth but faces challenges in profitability, indicated by negative net income and pressured EBIT and EBITDA margins. The balance sheet is strong with high equity and liquidity, though cash flow management is a concern due to inconsistent free cash flow and reliance on cash reserves.
Income Statement
60
Neutral
The revenue has shown moderate growth from 2020 to 2024, with a notable dip in gross profit margin from 2023 to 2024. The company has experienced negative net income in the recent years, indicating profitability challenges. EBIT and EBITDA margins are also under pressure, suggesting operational inefficiencies.
Balance Sheet
70
Positive
The company maintains a strong equity base with a favorable equity ratio. However, the debt-to-equity ratio has increased slightly over the years, signaling rising leverage. Despite this, the company has ample cash reserves, enhancing financial stability.
Cash Flow
50
Neutral
There is a lack of consistent positive free cash flow growth with significant fluctuations over the years. The operating cash flow has been insufficient to cover net income, indicating potential liquidity issues.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.83B1.83B1.54B1.48B1.07B
Gross Profit487.39M501.95M414.45M471.26M284.58M
EBITDA160.68M53.50M237.57M266.08M-97.78M
Net Income-203.70M-194.21M49.52M75.07M-258.45M
Balance Sheet
Total Assets4.13B4.50B4.75B4.73B4.58B
Cash, Cash Equivalents and Short-Term Investments1.40B1.24B1.20B1.89B1.82B
Total Debt357.62M456.94M475.02M117.97M139.88M
Total Liabilities746.56M881.82M896.09M504.94M456.51M
Stockholders Equity2.98B3.24B3.49B3.86B3.81B
Cash Flow
Free Cash Flow206.11M229.79M-5.46M151.00M3.75M
Operating Cash Flow244.83M247.53M31.73M170.95M39.05M
Investing Cash Flow164.29M-20.95M587.77M-261.67M-742.86M
Financing Cash Flow-235.72M-151.07M-518.45M-90.80M-93.68M

Town Health International Medical Group Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.24
Price Trends
50DMA
0.24
Positive
100DMA
0.25
Negative
200DMA
0.25
Negative
Market Momentum
MACD
<0.01
Negative
RSI
52.93
Neutral
STOCH
49.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3886, the sentiment is Neutral. The current price of 0.24 is above the 20-day moving average (MA) of 0.24, above the 50-day MA of 0.24, and below the 200-day MA of 0.25, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.93 is Neutral, neither overbought nor oversold. The STOCH value of 49.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3886.

Town Health International Medical Group Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
HK$1.70B5.2824.13%4.21%-3.85%-19.28%
63
Neutral
HK$1.30B43.481.27%7.58%
61
Neutral
HK$598.57M36.021.07%4.94%-1.20%-87.51%
61
Neutral
HK$1.63B-6.55%0.50%0.04%-4.88%
52
Neutral
$7.46B-0.04-63.82%2.49%16.43%<0.01%
51
Neutral
HK$1.49B130.77-1.93%1.25%-6.00%-232.11%
48
Neutral
HK$718.61M-10.78%-0.95%-128.35%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3886
Town Health International Medical Group Ltd.
0.24
-0.04
-14.29%
HK:9960
Kindstar Globalgene Technology, Inc.
1.41
0.13
10.16%
HK:1526
Rici Healthcare Holdings Ltd.
1.07
-0.08
-6.96%
HK:3689
Guangdong Kanghua Healthcare Co., Ltd. Class H
1.83
-0.71
-27.95%
HK:3869
Hospital Corporation of China Ltd
5.20
-0.50
-8.77%
HK:6639
Arrail Group Ltd.
2.30
-1.73
-42.93%

Town Health International Medical Group Ltd. Corporate Events

Town Health International Approves AGM Resolutions and Committee Appointment
Jun 6, 2025

Town Health International Medical Group Ltd. announced that all resolutions at their Annual General Meeting were approved, including the adoption of financial statements and the declaration of a final dividend. Additionally, Ms. Lau Suk Hing Clara was appointed to the Nomination Committee, reflecting a strategic move in the company’s governance structure.

Town Health International Announces Board Composition and Roles
Jun 6, 2025

Town Health International Medical Group Ltd. announced the composition of its board of directors and the roles within its board committees. This update reflects the company’s governance structure, which is crucial for maintaining transparency and accountability in its operations, potentially impacting stakeholder confidence and the company’s strategic direction.

Town Health International Medical Group Ltd. Announces Annual General Meeting
Apr 29, 2025

Town Health International Medical Group Ltd. has announced its annual general meeting scheduled for June 6, 2025, where key business matters will be addressed. These include the adoption of financial statements, declaration of a final dividend, re-election of directors, and re-appointment of auditors. The meeting will also consider resolutions to empower directors to manage share allotments and related financial instruments, potentially impacting the company’s capital structure and shareholder value.

Town Health International Announces Final Dividend for 2024
Apr 29, 2025

Town Health International Medical Group Ltd. announced a final cash dividend of HKD 0.0012 per share for the financial year ending December 31, 2024. The dividend will be paid on September 12, 2025, following shareholder approval on June 6, 2025. This announcement updates previous information regarding book closure and record dates, reflecting the company’s commitment to shareholder returns.

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: Jul 08, 2025