Guangdong Kanghua Healthcare Co., Ltd. Class H (3689) AI Stock Analysis

Guangdong Kanghua Healthcare Co., Ltd. Class H

(HKEX:3689)

Select Model

Rating:73Outperform

Price Target:HKD 2.00▲(14.94% Upside)

Action:reiterated

Date:10/09/26

The overall score reflects moderately solid but not outstanding financial health, with recovering profitability and a stronger balance sheet partially offset by declining free cash flow. A very attractive valuation, featuring a low P/E and high dividend yield, significantly lifts the score by compensating for these operational risks. Supportive technicals, with the price above key moving averages and neutral-to-positive momentum, further reinforce the outlook without indicating overbought conditions. The company operates private hospitals and related healthcare services in China within the medical care facilities industry[3].

Positive Factors

Profitability reboundThe sharp improvement in net and operating margins indicates that the hospital platform regained meaningful earnings capacity in 2025. If sustained, stronger profitability can support reinvestment in clinical services, improve resilience, and provide a more durable base for future cash generation.

Negative Factors

Revenue contractionThe 2025 revenue decline and uneven historical growth indicate that demand or service volumes have not followed a stable upward path. Continued top-line volatility could limit operating leverage, make margin improvement harder to sustain, and reduce visibility into the pace of durable business expansion.

Guangdong Kanghua Healthcare Co., Ltd. Class H (3689) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 551.75M
Dividend Yield: 10.92%
Average Volume (3M): 4,700
Price to Earnings (P/E): 5.3
Beta (1Y): 0.21
Revenue Growth: -0.27%
EPS Growth: 29.73%
Country: Hong Kong
Employees: 3,728
Sector: Healthcare
Sector Strength: 51
Industry: Medical - Care Facilities

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 Services,...

How the Company Makes Money

The company primarily makes money by providing medical services to patients through its hospitals and related healthcare facilities. Its core revenue stream typically consists of fees charged for clinical services (e.g., outpatient visits, inpatient...

Guangdong Kanghua Healthcare Co., Ltd. Class H Financial Statement Overview

Summary

Financial performance is moderately strong, with stable revenue around 1.9–2.0 billion CNY and recovering net profit margins after a weak 2024, supported by improving ROE and lower leverage, but constrained by a recent revenue decline and negative free cash flow growth.

Income Statement

65Positive

Balance Sheet

75Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.96B	1.97B	2.06B	2.04B	1.85B	1.95B
Gross Profit	365.16M	359.37M	321.87M	364.37M	261.35M	352.75M
EBITDA	297.82M	253.39M	224.86M	305.92M	233.79M	298.46M
Net Income	95.32M	97.01M	15.34M	121.06M	59.70M	94.31M
Balance Sheet
Total Assets	2.85B	2.68B	2.74B	2.62B	2.72B	2.70B
Cash, Cash Equivalents and Short-Term Investments	697.27M	743.33M	678.40M	718.52M	754.34M	770.34M
Total Debt	463.24M	326.21M	320.66M	426.58M	429.92M	494.54M
Total Liabilities	1.34B	1.15B	1.28B	1.13B	1.22B	1.23B
Stockholders Equity	1.49B	1.51B	1.44B	1.42B	1.49B	1.43B
Cash Flow
Free Cash Flow	223.04M	234.48M	193.15M	73.31M	106.20M	162.19M
Operating Cash Flow	278.09M	282.66M	280.13M	204.19M	221.40M	333.37M
Investing Cash Flow	-180.65M	-238.75M	-87.33M	-107.72M	-83.16M	-299.33M
Financing Cash Flow	-211.56M	-46.31M	-251.71M	-55.56M	-110.88M	23.27M

Guangdong Kanghua Healthcare Co., Ltd. Class H Technical Analysis

Technical Analysis SentimentNegative

Last Price1.74

Price Trends

50DMA1.83Negative

100DMA1.79Negative

200DMA1.75Negative

Market Momentum

MACD-0.02Positive

RSI40.19Neutral

STOCH25.71Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3689, the sentiment is Negative. The current price of 1.74 is below the 20-day moving average (MA) of 1.80, below the 50-day MA of 1.83, and below the 200-day MA of 1.75, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 40.19 is Neutral, neither overbought nor oversold. The STOCH value of 25.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3689.

Guangdong Kanghua Healthcare Co., Ltd. Class H Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

HK:3689 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:2219	73Outperform	HKD 1.66B	8.34	6.97%	10.27%	3.85%	-1.23%
HK:3689	73Outperform	HKD 581.85M	5.27	6.35%	10.92%	-0.27%	29.73%
HK:3309	66Neutral	HKD 1.05B	10.10	5.57%	2.35%	4.75%	―
HK:1846	63Neutral	HKD 703.50M	285.71	0.20%	2.00%	20.54%	-96.74%
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HK:6639	48Neutral	HKD 1.03B	31.06	1.27%	―	―	―
HK:3886	41Neutral	HKD 1.10B	78.09	0.48%	1.10%	-3.26%	―

* Healthcare Sector Average

Performance Comparison

HK:3689 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:3689	Guangdong Kanghua Healthcare Co., Ltd. Class H	1.74	-0.03	-1.97%
HK:1846	EuroEyes International Eye Clinic Limited	2.20	-1.09	-33.17%
HK:2219	Chaoju Eye Care Holdings Ltd.	2.36	0.01	0.43%
HK:3309	C-MER Eye Care Holdings Limited	0.85	-0.91	-51.81%
HK:3886	Town Health International Medical Group Ltd.	0.16	-0.11	-40.07%
HK:6639	Arrail Group Ltd.	1.83	-0.09	-4.74%

Guangdong Kanghua Healthcare Co., Ltd. Class H Corporate Events

Guangdong Kanghua Healthcare Delivers Higher Profit on Lower Revenue in Interim Results

Aug 31, 2026

Guangdong Kanghua Healthcare Group reported interim revenue of RMB937.6 million for the six months ended 30 June 2026, a 4.5% decline from a year earlier as cost controls kept gross profit broadly flat. Profit for the period rose 10.5% to RMB36.0 mil...

Guangdong Kanghua Healthcare Schedules Board Meeting on Interim Results and Dividend

Aug 19, 2026

Guangdong Kanghua Healthcare Group has scheduled a board meeting for 31 August 2026 to review and approve the interim results for the six months ended 30 June 2026 and to decide on their release to the market. The board will also consider the payment...

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: Oct 09, 2026

Guangdong Kanghua Healthcare Co., Ltd. Class H AI Stock Analysis