Town Health International Medical Group Ltd. (3886) AI Stock Analysis

• Market Cap: HK$1.76B
• Dividend Yield: 0.46%
• Average Volume (3M): 1.46M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.06
• Revenue Growth: -0.55%
• EPS Growth: 45.36%
• Country: HK
• Employees: 1,138
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Care Facilities
• EPS (TTM): <0.01
• Shares Outstanding: 6,773,522,500
• 10 Day Avg. Volume: 1,003,300
• 30 Day Avg. Volume: 1,460,136
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$0.50
• Price Target Upside: 92.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: HK$0.50 ▲(92.31% Upside)

The stock's overall score is influenced primarily by moderate financial performance with profitability challenges and strong equity. Technical analysis indicates overbought conditions, suggesting caution. The valuation is poor due to a negative P/E ratio, despite a high dividend yield.

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

Company Description

Town 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 Money

Town 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.83B	1.83B	1.54B	1.48B	1.07B
Gross Profit	487.39M	501.95M	414.45M	471.26M	284.58M
EBITDA	160.68M	53.50M	237.57M	266.08M	-97.78M
Net Income	-203.70M	-194.21M	49.52M	75.07M	-258.45M
Balance Sheet
Total Assets	4.13B	4.50B	4.75B	4.73B	4.58B
Cash, Cash Equivalents and Short-Term Investments	1.40B	1.24B	1.20B	1.89B	1.82B
Total Debt	357.62M	456.94M	475.02M	117.97M	139.88M
Total Liabilities	746.56M	881.82M	896.09M	504.94M	456.51M
Stockholders Equity	2.98B	3.24B	3.49B	3.86B	3.81B
Cash Flow
Free Cash Flow	206.11M	229.79M	-5.46M	151.00M	3.75M
Operating Cash Flow	244.83M	247.53M	31.73M	170.95M	39.05M
Investing Cash Flow	164.29M	-20.95M	587.77M	-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 Price: 0.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 0.26 is below the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.26, and above the 200-day MA of 0.26, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.39 is Neutral, neither overbought nor oversold. The STOCH value of 27.38 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3689	70 Outperform	HK$665.44M	40.04	1.07%	8.00%	-1.20%	-87.51%
1526	66 Neutral	HK$1.64B	5.08	24.13%	4.37%	-3.85%	-19.28%
9960	54 Neutral	HK$1.53B	130.77	-1.93%	1.62%	-6.00%	-232.11%
6639	54 Neutral	HK$1.22B	46.20	1.27%	―	-4.30%	13.83%
Sector *	51 Neutral	$7.86B	-0.26	-41.41%	2.22%	22.87%	-2.01%
3886	48 Neutral	HK$1.76B	―	-4.66%	0.46%	-0.55%	45.36%
3869	48 Neutral	HK$934.19M	―	-10.78%	―	-0.95%	-128.35%

Town Health International Medical Group Ltd. Corporate Events

Town Health International Approves AGM Resolutions and Committee Appointment

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

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.