Ping An Health (01833) joins DeepSeek: AI medical new engine, opening up new growth space.

In early 2025, the global AI field experienced an unprecedented technological revolution with the rapid rise of the open-source large model DeepSeek. From finance to healthcare, from technology to manufacturing, an increasing number of companies began to realize the enormous potential of this technology and joined the deployment frenzy of DeepSeek. In the domestic market, top cloud service providers such as Alibaba Cloud, Tencent Cloud, and Huawei Cloud were the first to support DeepSeek, providing users with convenient one-stop deployment solutions. In vertical industries, securities firms such as Huafu Securities and Sinolink, healthcare giants such as Jiangsu Hengrui Pharmaceuticals and Wonders Information, as well as technology companies such as Topsec Technologies Group Inc. and Hubei Century Network Technology Inc., have also completed localized deployments. As a leading company in the Chinese Internet healthcare sector, Ping An Health (01833) has always been at the forefront of technological innovation. It is reported that Ping An Health has completed the deployment and partial scenario application verification of DeepSeek based on its "Ping An Medical BoTong" multimodal large model and "Ping An Medical Family" doctor's workstation. From the perspective of the capital market, Ping An Health's integration of DeepSeek this time is undoubtedly an important strategic upgrade. As a highly regarded Internet healthcare target in the Hong Kong stock market, Ping An Health's continuous investment and innovation in AI technology in recent years have established a solid competitive barrier. The integration of DeepSeek will further strengthen its technological moat and enhance its leading position in the industry. It is worth mentioning that Ping An Insurance recently acquired Ping An Health shares in the form of stock dividends, consolidated its financial statements, and once again confirmed that it has no intention of privatizing Ping An Health. This move may further empower Ping An Health's AI strategy with the group's resources and technological capabilities. With the group's mergers and consolidations and the integration of DeepSeek, Ping An Health is ushering in a new dawn of AI. Consolidating the company's moat by combining existing AI models Since its establishment, Ping An Health has always regarded technological innovation as its core drive. As early as 2018, the company launched its independently developed AI-assisted diagnosis and treatment system, "AI Doctor", and continuously iterated and upgraded it to form a full-process AI healthcare solution covering pre-diagnosis, diagnosis, and post-diagnosis. In terms of products, Ping An Health innovatively created five databases including a disease library, prescription treatment library, medical product library, medical resource library, and personal health library, and built a "Ping An Medical BoTong" multimodal healthcare large model and 12 AI business model groups. The integration of DeepSeek this time means that Ping An Health's AI technology system will undergo an important upgrade, opening up new growth space for the company's future development. DeepSeek, as an advanced AI technology platform, has powerful data processing and deep learning capabilities. By combining it with Ping An Health's existing AI models, DeepSeek can help the company further enhance the intelligence level of medical services. For example, in terms of disease diagnosis, DeepSeek can assist doctors in making more accurate diagnoses by analyzing massive medical data; in terms of health management, DeepSeek can provide personalized health management plans based on user health data. This synergistic effect of technology not only optimizes existing medical service processes but also provides more efficient and accurate health management services to patients. More importantly, the integration of DeepSeek further deepens Ping An Health's technological moat. In the Internet healthcare industry, technological barriers are a key factor determining a company's competitiveness. Ping An Health has established a significant advantage in AI healthcare through continuous exploration, construction, and introduction of advanced technologies. The integration of the DeepSeek large model will further widen the gap with competitors and consolidate its leading position in the industry. In fact, despite the vast prospects of AI technology in the healthcare field, the uniqueness of the healthcare industry requires AI technology to be more specialized and refined. The healthcare industry involves a large amount of specialized knowledge and complex clinical scenarios, and AI systems must undergo extensive professional training to perform their intended role in practical applications. DeepSeek, as a general AI technology platform, possesses strong capabilities in data processing and deep learning, but its application in the healthcare field still requires further industry-specific training. Ping An Health's deep accumulation in the healthcare field provides a solid foundation for the industry-specific training of DeepSeek. As a professional Internet healthcare company, Ping An Health has a large team of medical experts and rich healthcare data resources. These experts have accumulated extensive knowledge and experience in their respective fields, enabling them to provide professional guidance for the industry-specific training of DeepSeek in the healthcare field. At the same time, Ping An Health's accumulation of a vast amount of real healthcare data over the years, including medical records, diagnosis records, treatment plans, etc., is valuable material for training medical AI models. By combining Ping An Health's professional advantages with DeepSeek's technological strengths, DeepSeek's application in the healthcare field can be more precise and reliable. For example, in medical image diagnosis, with the knowledge and experience of professional doctors, DeepSeek can better understand the features in medical images, accurately assess the type and severity of diseases, and provide more valuable assistance diagnostic information to doctors; in disease diagnosis, Ping An Health's medical team can provide DeepSeek with a large number of clinical cases, helping the AI system better understand the characteristics and diagnostic standards of different diseases. In addition, the regulatory environment of the healthcare industry imposes strict requirements on the application of AI technology. With its years of experience in compliant operations, Ping An Health can ensure the.All AI-related projects comply with national laws and regulations as well as industry standards. This is crucial for gaining user trust and promoting the implementation of technology.Technology and funding support from the group It is worth noting that the integration of DeepSeek by Ping An Health may also reflect the high importance Ping An Insurance places on its AI development strategy. As one of China's largest comprehensive financial services groups, Ping An Insurance has been increasing its investment in technology in recent years. With the integration of finance and technology, it is committed to creating a dual-drive model of "comprehensive finance + medical care and old-age care". In the field of medical health, Ping An Health has always been the flagship of Ping An Insurance's medical and old-age care ecosystem, and sees it as one of the important directions for future development. As an important member under Ping An Insurance, upon receiving Ping An Insurance's equity-for-dividend acquisition and consolidation, Ping An Insurance has strong strength and resources in the financial and technology fields to support Ping An Health and provide a solid backing for the company's AI development. Wang Zhaojiang, Executive Director of the Shenzhen Beishan Constantly Fund Research Institute, believes that equity-for-dividend distribution is a more optimized dividend scheme for a growing and excellent enterprise. "On one hand, without paying dividends in cash, for the company, there is more cash flow available for business development; on the other hand, for shareholders, having high-quality stocks, the potential for appreciation may be far greater than dividends." Regarding the consolidation, including institutions such as Citigroup, Dahua Jixian, Huatai, and others believe that this move will help Ping An Health to continue to demonstrate long-term synergy effects with the group. Citigroup's research report pointed out that Ping An Insurance issued $3.5 billion convertible bonds in July last year, and the net proceeds were intended to meet the group's future core financial business development needs, supplement the group's capital requirements, support the new strategic development needs of the group's medical and old-age services, and be used for general corporate purposes. Citigroup estimates that this may also involve PA GOODDOCTOR, which the group may disclose in detail when announcing the 2024 annual performance in March, and may strengthen control of Ping An Health and potentially inject capital into it. Huatai believes that after the consolidation within Ping An Insurance, Ping An Health, as a key part of Ping An Insurance's "medical and old-age care" strategy, will release important synergies with other businesses within the group (such as commercial medical insurance), which will be an important driver for its fundamental improvement and valuation enhancement. Based on this, we can reasonably speculate that Ping An Insurance may further increase its support for Ping An Health in the future. This may include funding, resource sharing, and technical cooperation in multiple aspects. For example, Ping An Insurance can provide strong support on the funding side to help Ping An Health increase its investment in AI technology research and application. Whether it is introducing high-end technical talent or building advanced computing infrastructure, a large amount of funding support is needed. Ping An Insurance's injection of funds will allow Ping An Health to more quickly lay out and develop in the field of AI, as well as better understand users' needs and behavior patterns in order to provide more personalized medical and financial services, such as customized health insurance products. Capital market outlook: Valuation enhancement can be expected The integration of DeepSeek by Ping An Health is a strategic move that brings multiple benefits to the company. One of its core competitive advantages lies in its unique business model, which provides users with a full-chain service from health management, disease prevention to diagnosis and treatment through the combination of Wuxi Online Offline Communication Information Technology Co., Ltd. The integration of DeepSeek will bring new optimization and enhancement to this model. For the company, integrating DeepSeek means a transformation from simple digital services to comprehensive intelligence. By integrating DeepSeek's powerful computing and algorithm advantages, the in-depth application of AI technology in medical services, Ping An Health's user base and income level are expected to further increase, thereby driving the company's valuation growth.