DMG cuts Healthway Medical (5NG.SG) target price to $0.23 from $0.30 after slashing FY10 earnings estimate to $4.7 million from $16.0 million to reflect weak 2Q10 results, higher-than-expected start-up costs, says Dow Jones.

DMG notes healthcare group actively expanding in China, with plans to operate 20 medical centres there by year end after recently securing contracts to manage 12. Keeps Buy call.

“Revenue is expected to pick up strongly in FY11, with full-year contribution from its new medical centers in China,” says DMG.

2Q10 net profit down 97.2% on-year at $121,000 on increased start-up expenses, lower-than-expected patient load. Shares flat at $0.175.