FAST NEWS: Kangning Hospital’s patient visits jump in 2023

The latest: Wenzhou Kangning Hospital Co. Ltd. (2120.HK) announced Wednesday that its number of outpatient visits last year rose 10.4% to 501,214, while the number of inpatient bed-days rose by a similar 10.7% to 3.47 million.

Looking up: The inpatient bed day increase for the full year was far higher than the 6.7% growth in the first half of the year, meaning the business accelerated in the second half of the year.

Take Note: Despite the increase in the number of inpatient bed-days, the company’s average inpatient spending per bed-day on treatment and general healthcare services fell by 3.2% to 330 yuan ($46).

Digging Deeper: Kangning runs a network of private hospitals offering mental health services. The company listed on the Hong Kong Stock Exchange in 2015, becoming the first Chinese psychiatric care provider to go public. It is the biggest specialized provider of mental health services in China, operating 30 hospitals with 10,578 beds at the end of last June. The company was unaffected by the Covid outbreak in 2022, with revenue up 14.4% to 1.49 billion yuan. However, its credit loss jumped 11-fold after writing off loans to Hangzhou Yining Hospital, tipping the company from a profit into the red for the year.

Market Reaction: Kangning shares fluctuated slightly on Thursday and closed down 0.1% at HK$13.48 by the midday break. The stock now trades near the upper end of its 52-week range.

Translation by A. Au

Have a great investment idea but don’t know how to spread the word? We can help! Contact us for more details.

To subscribe to Bamboo Works weekly free newsletter, click here