Managed healthcare strategy steady and far-reaching, Ping An Health (01833) rose more than 10% in intraday trading.

On September 25, Ping An Healthcare (01833) led the Internet medical sector, rising more than 10% during trading to a high of 11.62 Hong Kong dollars. At the time of writing, the stock was up 5.97% at 11.00 Hong Kong dollars. Ping An Healthcare's 2024 interim performance report showed that, following the implementation of a management-style medical strategy, the company turned its first profit in the first half of 2024, with a net profit of over 60 million yuan and an adjusted net profit of nearly 90 million yuan. The so-called "management-style medical" approach involves deeply involvement in the entire process of medical services through methods such as health risk management, service process management, and medical quality management, ultimately aiming to reduce medical costs and insurance premiums. Under the unique management-style medical model, Ping An Healthcare provides integrated financial services to users of Ping An Group's life insurance, property insurance, health insurance, and banking operations (referred to as the F-end) through Wuxi Online Offline Communication Information Technology Co., Ltd, offering all-around, 24/7, proactive medical and health management services. In the first half of the year, F-end revenue and user numbers doubled, with about 14.8 million paying users, a year-on-year increase of about 7%, and revenue of 1.12 billion yuan, a year-on-year increase of 3.4%. Enterprise health management is a key strategic layout in Ping An Healthcare's deepened Strategy 2.0 and a core driver for the company's long-term growth. With the continuous increase in the penetration rate of Ping An Group's corporate clients and the continued growth in self-developed corporate customers, the B-end business has shown strong development, with the number of served corporate clients reaching 1,748 by the end of the reporting period, a 46% increase over the same period last year. In addition, as China's society rapidly ages, Ping An Healthcare has further developed an integrated elderly care "smart butler, life butler, doctor butler" service. Currently, home care services cover 64 cities nationwide, with 10 more cities added since the end of last year. The newly added "senior care services sector" in the company's first-half financial report achieved a business income of 47 million yuan, a year-on-year increase of 204.8%; the sector's gross profit margin was 16.9%, a 13.6 percentage points increase year-on-year, showing initial growth momentum. Chairman and CEO of Ping An Healthcare, Li Dou, disclosed in an interview with the China Securities Journal, "Currently, China's aging economy is entering a rapid development stage, and the diversified elderly care and health management awareness of the people are also undergoing changes, upgrades, and iterations. The market demand for medical care and elderly care is constantly rising. Over the past decade, Ping An Healthcare has deeply understood market demand and continued to strengthen the unique advantages of differentiation and high barriers to entry, focusing on the construction of two core hubs: family doctors and elderly care butlers, and has become a leading domestic medical, health, and elderly care service provider." China Securities Co., Ltd. pointed out that since the implementation of the 2.0 transformation strategy, Ping An Healthcare has been continuously advancing the development of F-end and B-end strategic businesses, with the restructuring of the business structure largely completed by 2023. As the company's F-end business continues to empower Ping An Group, and the B-end business rapidly grows through group channels and self-expanding channels, coupled with efficiency improvements and cost optimization brought by information technology, the company is optimistic about its continued growth as a professional and comprehensive provider of medical, elderly care, and health management services.