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

• Market Cap: HK$1.86B
• Dividend Yield: 0.46%
• Average Volume (3M): 1.53M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• Revenue Growth: -0.55%
• EPS Growth: 45.36%
• Country: HK
• Employees: 1,138
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): <0.01
• Shares Outstanding: 6,773,522,500
• 10 Day Avg. Volume: 1,718,950
• 30 Day Avg. Volume: 1,531,500
• PEG Ratio: -1.67
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.90
• P/FCF Ratio: 8.05
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: HK$0.50 ▲(92.31% Upside)

The stock score is primarily impacted by financial performance challenges, particularly in profitability and cash flow management. Technical indicators suggest bearish momentum, and valuation is affected by 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 Ltd. (3886) is a leading provider of comprehensive healthcare services based in Hong Kong. The company operates in multiple sectors including outpatient services, hospital management, and telemedicine, offering a range of core products and services that cater to the evolving healthcare needs of its clients. Town Health focuses on delivering high-quality medical care, preventive health services, and wellness programs, leveraging technology to enhance patient access and outcomes.

How the Company Makes Money

Town Health International Medical Group Ltd. generates revenue through several key streams. The primary source of income comes from outpatient services, where the company charges patients for consultations, diagnostic tests, and treatment plans. Additionally, Town Health earns revenue from its partnerships with hospitals and clinics, providing management services and sharing in the profits generated from patient care. Telemedicine services also contribute to revenue by enabling consultations and follow-ups via digital platforms, appealing to a broader patient base. Moreover, the company may receive income from health insurance reimbursements, as well as from corporate health programs and wellness initiatives offered to businesses. Strategic alliances with healthcare providers and insurers further enhance its market reach and profitability.

Town Health International Medical Group Ltd. Financial Statement Overview

Summary

The company shows moderate revenue growth but faces profitability challenges with negative net income. The balance sheet is strong with high equity and liquidity, though cash flow management is concerning due to inconsistent free cash flow.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.82B	1.83B	1.83B	1.54B	1.48B	1.07B
Gross Profit	468.01M	487.39M	501.95M	414.45M	471.26M	284.58M
EBITDA	140.81M	160.68M	53.50M	237.57M	219.79M	-97.78M
Net Income	-143.30M	-203.70M	-194.21M	15.29M	22.01M	-281.04M
Balance Sheet
Total Assets	4.10B	4.13B	4.50B	4.75B	4.73B	4.58B
Cash, Cash Equivalents and Short-Term Investments	1.38B	1.40B	1.20B	1.35B	1.89B	1.82B
Total Debt	262.47M	357.62M	456.94M	475.02M	117.97M	139.88M
Total Liabilities	666.65M	746.56M	881.82M	896.09M	504.94M	456.51M
Stockholders Equity	3.01B	2.98B	3.24B	3.49B	3.86B	3.81B
Cash Flow
Free Cash Flow	172.04M	206.11M	229.79M	-5.46M	151.00M	3.75M
Operating Cash Flow	213.08M	244.83M	247.53M	31.73M	170.95M	39.05M
Investing Cash Flow	291.15M	164.29M	-20.95M	587.77M	-261.67M	-742.86M
Financing Cash Flow	-182.29M	-235.72M	-151.07M	-518.45M	-90.80M	-93.68M

Town Health International Medical Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.29, below the 50-day MA of 0.27, and below the 200-day MA of 0.26, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 31.92 is Neutral, neither overbought nor oversold. The STOCH value of 8.93 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3689	71 Outperform	HK$635.35M	7.70	5.33%	8.42%	0.47%	50.46%
1526	66 Neutral	HK$1.59B	5.48	20.47%	4.37%	-3.56%	-17.45%
3869	56 Neutral	HK$827.78M	5.69	30.40%	―	2.30%	―
3886	52 Neutral	HK$1.86B	-12.97	-4.66%	0.46%	-0.55%	45.36%
6639	52 Neutral	HK$1.10B	42.30	1.27%	―	-4.30%	13.83%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
9960	45 Neutral	HK$1.33B	―	-3.59%	1.86%	-4.09%	-1242.31%

Town Health International Medical Group Ltd. Corporate Events

Town Health Updates on Profit Guarantee Proceedings

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

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

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

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

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

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.