Town Health International Medical Group (3886) has issued a positive profit alert, expecting it to record an overall consolidated profit is projected up to HK$39.6 million, against an overall loss of HK$28.5 million a year ago.
Such a turnaround was mainly attributable to the net effects of a decrease in fair value loss of the group’s investment properties and no impairment losses on its associates, as well as the associates' profits during the first half of the year.
The medical group said in a stock exchange filing on Tuesday that it will record a net profit of up to HK$14.3 million for the six months ended June.
That compares to a net loss of approximately HK$47.7 million recorded for the six months ended 30 June 2024.
The company expects an operating profit of between HK$11 million and HK$17.3 million for the period, if “other gains and losses, net” as shown in the unaudited condensed consolidated statement of profit or loss are excluded, the filing said.
Town Health is still performing assessments and valuation of its relevant assets and may record further adjustments to such assets, it said.
It booked a revenue of HK$914 million in the first half of 2024.
The half-year results for 2025 are expected to be published this month.
Founded in 1989, Town Health went public in Hong Kong in 2000, becoming the city’s first publicly listed medical clinic chain. The group has now expanded its business to numerous medical fields in both Hong Kong and the mainland, including medical services, hospital management business, as well as preventive healthcare, and medical beauty.
It recently launched video consultation services to offer more convenient and high-quality care to Hong Kong residents and is also actively expanding its cross-border medical business.
Town Health’s shares were flat before the profit alert.
