Hong Kong stock concept tracking|ALI HEALTH's mid-term performance exceeds expectations, the internet healthcare industry welcomes multiple marginal improvements (with concept stocks)

On the evening of November 13, ALI HEALTH released its mid-term performance announcement for the 2024 fiscal year. The announcement showed that in the six months ending on September 30, 2024, ALI HEALTH's revenue was 14.27 billion yuan, a year-on-year increase of 10.2%; net profit was 769 million yuan, a year-on-year increase of 72.8%; annual active users exceeded 300 million, continuing to be the online B2C medical and health product retail platform with the highest annual active users and the largest annual commodity transaction volume in China. As of September 30, 2024, the number of service providers on the Tmall Health platform increased by 25% year-on-year to over 40,000, SKUs continued to grow to 78 million, and GMV (total commodity transaction volume) achieved stable high-quality year-on-year growth. User experience and user stickiness further improved, and the number of ALI HEALTH pharmacy user members continued to rise. Minsheng Securities issued a research report stating that the introduction of the "Opinions on Promoting the High-Quality Development of Service Consumption" will promote the development of "Internet + Medical Health" and achieve as soon as possible the interconnection of medical data and gradually improve the "Internet +" medical service and medical insurance payment policies. The scale of the pharmaceutical e-commerce market exceeds 100 billion yuan, with the current industry penetration rate at a low level, and medical insurance reimbursement issues being the primary constraint. This policy explicitly states that medical data interoperability will be achieved as soon as possible, and the "Internet +" medical service medical insurance payment policy will be gradually improved. In the future, with a series of standardized policies such as gradually opening up the scope of online prescription drug sales and improving medical insurance payment policies, the pharmaceutical e-commerce market will usher in opportunities and is expected to further penetrate the market. CITIC SEC released a research report pointing out that the Internet medical industry is experiencing multiple marginal improvements. In the medium to short term, many provinces nationwide are opening up the online purchase of drugs through pharmaceutical e-commerce and using medical insurance settlement rights. In the future, the scope of permits is expected to expand from non-prescription drugs to prescription drugs, and from individual accounts to overall reimbursement. The number of users and frequency of use of pharmaceutical e-commerce are expected to increase. In the long term, the industry's generalized development prospects are promising, and platform-type enterprises are actively creating integrated health consumption platforms for "medicine + health + insurance." Maintain a "outperforming the market" rating. Hong Kong-listed stocks related to Internet medicine: ALI HEALTH (00241), PA GOODDOCTOR (01833), JD HEALTH (06618), DINGDANG HEALTH (09886), FANGZHOU JIANKE (06086).