FAST NEWS: Kangning Hospital’s outpatient visits up 9.2% in third quarter

The latest: Wenzhou Kangning Hospital Co. Ltd. (2120.HK) announced Wednesday that its number of outpatient visits in the third quarter rose 9.2% to 128,000, while the number of inpatient bed-days increased 13.1% to 926,000.

Looking up: The company’s third-quarter inpatient bed days rose much faster than in the first half of the year, when they grew by just 6.7%, implying an acceleration in its business that could lift revenue growth.

Take Note: Despite the increase in outpatient visits and inpatient bed-days, Kangning’s total average outpatient spending per visit decreased by 4.4% to 433 yuan ($60) in the third quarter, and its total average inpatient spending per bed-day also dropped by 5.1% to 375 yuan.

Digging Deeper: Kangning runs a network of private hospitals offering mental health services. The company listed its shares on the Hong Kong Stock Exchange in 2015, becoming the first Chinese psychiatric care provider to go public. It is the biggest specialized mental health medical brand in China, operating 30 hospitals with 10,578 beds at the end of June this year. The company has also developed a geriatric medical segment in recent years to serve China’s aging population, diversifying into that area through its acquisition and establishment of two geriatric hospitals.

Market Reaction: Kangning shares fell on Thursday and closed down 3.1% at HK$11.78 by the midday break. The stock now trades in the middle of its 52-week range.

Translation by A. Au

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