CITIC SEC: Maintains "buy" rating for Sipai Health (00314) with a target price of 6.5 Hong Kong dollars.

CITIC SEC released a research report stating that it is optimistic about the development trend of the commercial health insurance industry and the core competitive advantage built by SIPAI HEALTH (00314) in the "medical, pharmaceutical, insurance" ecosystem. The improvement in future profits is worth looking forward to. Based on the strategic optimization and restructuring of the company's special medicine pharmacy business and Huimin insurance business in 2025H1, the company's revenue forecast for 2025/26/27 is adjusted to 2.1/1.94/2.07 billion yuan (originally forecasted as 4.92/5.26/5.57 billion yuan); the company's net profit forecast is adjusted to a loss of 99 million yuan/29 million yuan/profit of 32 million yuan (originally forecasted as a loss of 107 million yuan/35 million yuan/profit of 32 million yuan). Using the absolute valuation method, the company's target price for 2025 is 6.5 Hong Kong dollars, corresponding to 6.0 yuan, maintaining a "buy" rating.