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Guangdong Kanghua Healthcare Co., Ltd. Class H
(3689)
Select Model
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Rating:68Neutral
Price Target:
HK$2.00
▲(5.26% Upside)
Action:Reiterated
Date:07/09/26
The score is driven primarily by improving financial performance (profitability rebound, manageable leverage, and positive cash generation) but tempered by uneven revenue and volatility in earnings/free cash flow. Valuation is a clear positive (low P/E and high dividend yield), while technical indicators are mixed with negative MACD and the price still below key longer-term averages.
Positive Factors
Profitability rebound
A meaningful margin recovery in 2025 signals improved operational control and pricing or mix benefits. Sustained mid-single-digit EBIT/net margins increase cash available for reinvestment, debt service and dividends, supporting financial resilience over the next several quarters.
Negative Factors
Uneven revenue trends
Declining and inconsistent top-line growth weakens predictability of margins and cash flow. For a hospital services business, volatile revenue suggests variability in patient volumes or reimbursement, complicating resource planning and long-term service expansion decisions.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability rebound
A meaningful margin recovery in 2025 signals improved operational control and pricing or mix benefits. Sustained mid-single-digit EBIT/net margins increase cash available for reinvestment, debt service and dividends, supporting financial resilience over the next several quarters.
Read all positive factors
Guangdong Kanghua Healthcare Co., Ltd. Class H (3689) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$635.35M
Dividend Yield10%
Average Volume (3M)1.36K
Price to Earnings (P/E)5.8
Beta (1Y)0.12
Revenue Growth-0.27%
EPS Growth29.73%
CountryHK
Employees3,728
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.29
Shares Outstanding84,394,000
10 Day Avg. Volume80
30 Day Avg. Volume1,360
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.34
Price to Sales (P/S)0.26
P/FCF Ratio2.22
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Guangdong Kanghua Healthcare Co., Ltd. Class H Business Overview & Revenue Model
Company Description
Guangdong Kanghua Healthcare Group Co., Ltd. primarily operates private hospitals in the People's Republic of China. The company operates through four segments: Hospital Services, Rehabilitation and Other Healthcare Services, Haemodialysis Service...
How the Company Makes Money
The company primarily makes money by providing medical and hospital services to patients and receiving payments from patients and/or third-party payors such as insurers and public healthcare reimbursement programs (where applicable). Key revenue s...
Guangdong Kanghua Healthcare Co., Ltd. Class H Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
73
Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.97B | 2.06B | 2.04B | 1.85B | 1.95B |
| Gross Profit | 359.37M | 321.87M | 364.37M | 261.35M | 352.75M |
| EBITDA | 249.78M | 224.86M | 305.92M | 233.79M | 298.46M |
| Net Income | 97.01M | 15.34M | 121.06M | 59.70M | 94.31M |
Balance Sheet | |||||
| Total Assets | 2.68B | 2.74B | 2.62B | 2.72B | 2.70B |
| Cash, Cash Equivalents and Short-Term Investments | 743.33M | 678.40M | 718.52M | 754.34M | 770.34M |
| Total Debt | 326.21M | 320.66M | 426.58M | 429.92M | 494.54M |
| Total Liabilities | 1.15B | 1.28B | 1.13B | 1.22B | 1.23B |
| Stockholders Equity | 1.51B | 1.44B | 1.42B | 1.49B | 1.43B |
Cash Flow | |||||
| Free Cash Flow | 234.48M | 193.15M | 73.31M | 106.20M | 162.19M |
| Operating Cash Flow | 282.66M | 280.13M | 204.19M | 221.40M | 333.37M |
| Investing Cash Flow | -238.75M | -87.33M | -107.72M | -83.16M | -299.33M |
| Financing Cash Flow | -46.31M | -251.71M | -55.56M | -110.88M | 23.27M |
Guangdong Kanghua Healthcare Co., Ltd. Class H Technical Analysis
Positive
1.90
Price Trends
1.81
Positive
1.78
Positive
1.73
Positive
Market Momentum
0.03
Negative
59.15
Neutral
95.06
Negative
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 1.9 is above the 20-day moving average (MA) of 1.84, above the 50-day MA of 1.81, and above the 200-day MA of 1.73, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 59.15 is Neutral, neither overbought nor oversold. The STOCH value of 95.06 is Negative, 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | HK$1.77B | 9.04 | 6.97% | 9.56% | 3.85% | -1.23% | |
68 Neutral | HK$635.35M | 5.81 | 6.35% | 10.00% | -0.27% | 29.73% | |
67 Neutral | HK$1.10B | 10.10 | 5.57% | 2.25% | 4.75% | ― | |
66 Neutral | HK$749.87M | 305.19 | 0.20% | 1.88% | 20.54% | -96.74% | |
60 Neutral | HK$1.03B | 31.32 | 1.27% | ― | ― | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
40 Underperform | HK$1.19B | 82.86 | 0.48% | 1.03% | -3.26% | ― |
* Healthcare Sector Average
HK:3689
Guangdong Kanghua Healthcare Co., Ltd. Class H
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Guangdong Kanghua Healthcare Co., Ltd. Class H Corporate Events
Guangdong Kanghua Healthcare Clarifies Independence of Newly Appointed Board Member
Jul 6, 2026
Guangdong Kanghua Healthcare Group has provided supplemental details on the appointment of Mr. Chen Weixiong as an independent non-executive director, and as a member of both its Audit and Nomination Committees. The announcement confirms that the ...
Guangdong Kanghua Healthcare Refreshes Independent Board Roles
Jun 30, 2026
Guangdong Kanghua Healthcare Group Co., Ltd. has announced changes to its board and key governance committees as it refreshes independent oversight. The move highlights the group’s continued reliance on independent directors and dedicated au...
Guangdong Kanghua Healthcare Sets Out Board and Committee Structure
Jun 30, 2026
Guangdong Kanghua Healthcare Group has announced the current composition of its board of directors, confirming four executive directors, one non-executive director and three independent non-executive directors, with chairman Wang Junyang leading t...
Guangdong Kanghua Healthcare Wins Unanimous Backing at 2025 AGM, Approves Dividend
Jun 18, 2026
Guangdong Kanghua Healthcare Group reported that all resolutions at its 2025 annual general meeting, held on June 18, 2026, were passed by poll with full shareholder support. The meeting, convened in accordance with PRC company law and the firm...
Guangdong Kanghua Healthcare Updates Final 2025 Dividend and Withholding Tax Terms
Jun 18, 2026
Guangdong Kanghua Healthcare Group has updated its final dividend for the year ended 31 December 2025, declaring a payout of RMB 0.16 per share, equivalent to HKD 0.19 based on an exchange rate of RMB 1 to HKD 1.1564. The dividend, approved on 18 ...
Guangdong Kanghua Explains Interest-Free Connected Loan for Elderly Care Expansion
Jun 15, 2026
Guangdong Kanghua Healthcare Group has issued supplemental details on its connected loan agreement, explaining why an interest-free loan to a related-party borrower for the expansion of Renkang Elderly Care Centre is considered to be on normal or ...
Kanghua Healthcare Grants RMB28 Million Interest-Free Loan for Elderly Care Expansion
May 19, 2026
Guangdong Kanghua Healthcare Group’s subsidiary Renkang Hospital has agreed to provide an interest-free loan of up to RMB28 million to Tongli Enterprise for two years to fund construction of a new elderly care centre complex. The facility wi...
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.