tiprankstipranks
Trending News
More News >
Town Health International Medical Group Ltd. (HK:3886)
:3886
Hong Kong Market
Advertisement

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

Compare
1 Followers

Top Page

HK:3886

Town Health International Medical Group Ltd.

(3886)

Select Model
Select Model
Select Model
Neutral 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
HK$0.50
▲(92.31% Upside)
The overall score is primarily influenced by financial performance challenges, particularly in profitability and cash flow management. Technical analysis suggests a neutral to slightly bearish trend, while valuation highlights risks due to a negative P/E ratio, partially offset by a high dividend yield.

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
Negative
Last Price0.26
Price Trends
50DMA
0.26
Negative
100DMA
0.25
Positive
200DMA
0.26
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
47.42
Neutral
STOCH
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3886, the sentiment is Negative. The current price of 0.26 is below the 20-day moving average (MA) of 0.26, below 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 Negative momentum. The RSI at 47.42 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3886.

Town Health International Medical Group Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
712.26M8.631.07%7.51%0.47%50.46%
68
Neutral
1.67B5.7522.09%4.29%-3.56%-17.45%
54
Neutral
HK$1.79B-4.66%0.45%-0.55%45.36%
52
Neutral
1.26B48.371.28%-4.30%13.83%
48
Neutral
939.72M6.460.00%2.30%0.00%
46
Neutral
1.56B-12.63-1.96%1.59%-4.09%-1242.31%
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:3886
Town Health International Medical Group Ltd.
0.26
0.00
0.00%
HK:9960
Kindstar Globalgene Technology, Inc.
1.50
0.27
21.95%
HK:1526
Rici Healthcare Holdings Ltd.
1.03
-0.08
-7.21%
HK:3689
Guangdong Kanghua Healthcare Co., Ltd. Class H
2.13
-0.07
-3.18%
HK:3869
Hospital Corporation of China Ltd
6.80
3.00
78.95%
HK:6639
Arrail Group Ltd.
2.17
-0.77
-26.19%

Town Health International Medical Group Ltd. Corporate Events

Town Health Updates on Profit Guarantee Proceedings
Sep 8, 2025

Town Health International Medical Group Ltd. has updated its shareholders on the ongoing proceedings related to a profit guarantee concerning its acquisition of Central Medical Holdings Limited. The company identified HK$5,000,000 in transactions that should be excluded from the Target Group’s operational profit for the financial year ended 31 March 2023. Consequently, Town Health is claiming an additional HK$75,000,000 due to the non-satisfaction of the performance target, raising the total claim amount to HK$172,956,690. The proceedings are still ongoing, and the company will provide further updates as necessary.

The most recent analyst rating on (HK:3886) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Town Health International Medical Group Ltd. stock, see the HK:3886 Stock Forecast page.

Town Health International Reports Turnaround with HK$35.6 Million Profit
Aug 29, 2025

Town Health International Medical Group Limited announced its interim financial results for the six months ended 30 June 2025, reporting a revenue of approximately HK$900.9 million and a net profit of approximately HK$35.6 million, a significant turnaround from the net loss of HK$28.5 million in the same period last year. The company maintained a strong financial position with net assets of approximately HK$3.44 billion and a stable current ratio of 3.19, while the gearing ratio improved to 0.38%. Despite these positive financial results, the Board decided not to recommend an interim dividend for the period.

The most recent analyst rating on (HK:3886) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Town Health International Medical Group Ltd. stock, see the HK:3886 Stock Forecast page.

Town Health Updates on Profit Guarantee Shortfall
Aug 29, 2025

Town Health International Medical Group Ltd. has updated its shareholders regarding the profit guarantee related to its acquisition of Central Medical Holdings Limited. The Target Group’s audited net profit for the financial year ended 31 March 2024 was HK$28,255,287, which is below the performance target of HK$30,000,000. After excluding certain transactions totaling HK$13,860,000 that were not directly attributable to operational activities, the adjusted net profit stands at HK$14,395,287. This shortfall implies that the seller parties are obliged to compensate the buyer as per the agreed formula, impacting the financial expectations and obligations of the involved parties.

The most recent analyst rating on (HK:3886) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Town Health International Medical Group Ltd. stock, see the HK:3886 Stock Forecast page.

Town Health International Schedules Board Meeting for Interim Results
Aug 19, 2025

Town Health International Medical Group Ltd. has announced that its board of directors will meet on August 29, 2025, to approve the unaudited interim results for the first half of the year and consider the payment of an interim dividend. This meeting is crucial for stakeholders as it will provide insights into the company’s financial health and potential returns.

The most recent analyst rating on (HK:3886) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Town Health International Medical Group Ltd. stock, see the HK:3886 Stock Forecast page.

Town Health Updates on Profit Guarantee and Extends Fund Utilization Timeline
Aug 18, 2025

Town Health International Medical Group Ltd. announced updates regarding the ongoing proceedings related to the profit guarantee for its acquisition of Central Medical Holdings Limited. The company is unable to disclose further details due to confidentiality, but will provide updates as appropriate. Additionally, Town Health has extended the timeline for utilizing unutilized First Net Proceeds from subscription shares and convertible preference shares until the end of 2026, due to the adverse impacts of COVID-19 and global economic slow-down on the healthcare industry.

Town Health International Announces Positive Profit Turnaround for H1 2025
Aug 12, 2025

Town Health International Medical Group Ltd. has issued a positive profit alert, indicating a significant turnaround in its financial performance for the first half of 2025. The company expects to report an unaudited consolidated profit of between HK$25.2 million and HK$39.6 million, a stark contrast to the loss recorded in the same period of 2024. This improvement is attributed to several factors, including a decrease in fair value loss on investment properties, no impairment losses on interests in associates, and a shift from recording losses to profits in its share of associates. The final results are still being finalized, and further adjustments may occur based on asset assessments.

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: Sep 18, 2025