CITIC Securities: Maintains a "Buy" rating on Simply Health (00314.HK) with a target price of HK$6.5.

According to the Zhichong Finance APP, CITIC Securities released a research report stating that they are optimistic about the development trend of the commercial health insurance industry and the core competitive advantage of SPH Health (00314.HK) in building a "medical, pharmaceutical, and insurance" ecological closed loop. The subsequent improvement in profitability is worth looking forward to. Based on the strategic optimization and restructuring of the company's special drug pharmacy business and Huimin Bao business by the first half of 2025, the company's operating income forecast for 2025/26/27 is adjusted to 2.10/1.94/2.07 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). According to the absolute valuation method, the company's target price for 2025 is 6.5 Hong Kong dollars, corresponding to 6.0 yuan, and maintains a "buy" rating.