Town Health back in black with $14.4m profit

Town Health International Medical (3886) swung to a profit of HK$14.4 million last year, turning the tables on a loss of HK$203.7 million from the year prior.

It declared a final dividend of 0.18 HK cents per share, up 50 percent from a year ago.

The company attributed the profit improvement to reductions in fair value losses on investment properties, impairment losses on interests in associates and goodwill, as well as its share of losses from associates.

If the gains and losses incurred outside its ordinary course of business are excluded, the company would have recorded an operating profit attributable to owners of the company of HK$37.1 million, representing a growth of 46.2 percent.

Revenue inched down 2.63 percent year-on-year to HK$1.79 billion.

Looking ahead, operating costs, competition for healthcare professionals, and the growing number of cross-border medical options for citizens present structural challenges to the private healthcare market, the company said.

Town Health maintains a competitive edge amid industry consolidation and intensifying market competition, benefiting from its healthcare service network throughout Hong Kong, mature operational management system and solid customer base, it noted, adding that it continues to hold prudent and steady confidence in the medium-to-long-term development of Hong Kong's private healthcare market.