FAST NEWS: Kangning outpatients fall in third quarter

The Latest: Wenzhou Kangning Hospital Co. Ltd. (2120.HK) announced Thursday that its outpatient visits in the third quarter fell 1.5% year-on-year to 126,201, while average outpatient spending per visit fell 4.2% to 415 yuan ($59).

Looking Up: The company’s third-quarter inpatient bed days rose 6.5%, implying an acceleration in that part of its business that could offset the weakness in outpatients.

Take Note: Despite the increase in inpatient bed days, Kangning’s total average inpatient spending per bed-day decreased by 1.6% to 369 yuan in the third quarter.

Digging Deeper: Kangning runs a network of private hospitals offering mental health services in China. The company listed in Hong Kong in 2015, becoming the first Chinese psychiatric care provider to go public. It is China’s biggest brand specializing in mental health, with 32 hospitals and 11,648 beds at the end of June. The company has also developed a geriatric medical segment to serve China’s aging population, including six hospitals for the elderly. That segment recorded revenue of 238 million yuan in the first half of this year, accounting for 31.1% of the total from its own hospitals.

Market Reaction: Kangning shares rose on Friday and closed up 5.3% at HK$13.98 by the midday break. The stock now trades in the middle of its 52-week range.

Translation by A. Au

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