CMSC: Initiate Coverage on QINGSONG HEALTH (02661) with a "Buy" rating and a target price of HKD 109.4, with a unique brand moat.

CMSC released a research report stating that QINGSONG HEALTH (02661) has successfully completed the transformation from a "crowdfunding platform" to a closed-loop ecosystem of "AI+ health services + insurance protection." The proportion of health service income has significantly increased, and the bank is optimistic about the company's long-term business resilience and anti-cyclical ability supported by a multi-payment structure. AI deeply empowers content production, precise conversion, and risk control systems, significantly improving operational efficiency and continuously amplifying economies of scale, driving revenue structure optimization and profit release. It initiated coverage with a "buy" rating and a target price of HK$109.4. In the highly competitive landscape of digital healthcare, the company has achieved competitive differentiation with serious medical platforms such as MEDLIVE through in-depth popular science education. Different from the academic promotion model targeting doctors, the company leverages the deep brand trust accumulated by its predecessor, EasePai. With the trend of watching videos before seeking medical treatment becoming popular among young people, the company has become the starting point of the patient decision-making chain. This consumer-oriented health content (such as hair loss, sleep, and chronic disease management) has a wider audience, and forms a strong psychological presence at both the scene and patient ends, making the company exhibit a unique brand moat in the crowded digital health industry. The bank believes that at the current stock price level, the company still has further room for value release in the medium to long term, and stock performance will mainly depend on the management's continued ability to realize the results of the transformation.