Broker: UOB Kay Hian
Date of Report: August 21, 2025

Ping An Healthcare and Technology Delivers Blockbuster 1H25: AI, Synergies, and Senior Care Fuel Growth Surge

Overview: Stellar Performance and Upgraded Outlook

Ping An Healthcare and Technology Company (PAGD, 1833 HK), China’s leading online healthcare platform, has posted exceptional results for the first half of 2025. The company’s robust revenue and profit growth, driven by deepening integration with Ping An Group, rapid AI enablement, and expansion in senior care services, have outstripped analyst and consensus estimates. UOB Kay Hian maintains its BUY rating, raising the target price to HK$19.00, reflecting a bullish outlook on continued double-digit revenue growth and substantial margin improvements.

Company Snapshot

• Share Price: HK\$15.74
• Target Price: HK\$19.00 (+20.7% upside)
• Market Cap: HK\$34,021m (US\$4,354m)
• Major Shareholder: Ping An Group (53.1%)
• GICS Sector: Health Care
• Bloomberg Ticker: 1833 HK
• 52-week High/Low: HK\$18.30 / HK\$5.53
• Price Change (YTD): +153.9%

Key Financial Highlights: 1H25 Results at a Glance

• Gross Margin: 33.6% (up 1.4ppt YoY)
• Adjusted Net Margin: 6.6% (up 2.3ppt YoY)
• EBIT Margin: 3.5% (up 7.6ppt YoY)
• Senior Care Services Margin: 37.6% (up 20.8ppt YoY)

Comprehensive Segmental Growth Analysis

Strategic Business Expansion Fuels Double-Digit Growth

• Overall revenue growth of 19.5% YoY in 1H25, outpacing both company and market expectations.
• F-end (financial customer) and B-end (corporate health management) businesses showcased remarkable growth, with revenue up 28.5% and 35.2% YoY respectively.
• Senior care services revenue soared 263.9% YoY, cementing its role as a new growth engine.

Operational Excellence Drives Profitability

• Gross margin improved to 33.6% due to AI-driven efficiencies and optimized business mix.
• Selling, general, and administrative expenses as a percentage of revenue fell 6.3ppt YoY, underscoring effective cost controls.
• Operating cash flow turned positive at Rmb63.6m in 1H25, reversing a negative outflow from the previous year.
• Steady improvement in net earnings and operating cash flows expected, with management guiding toward double-digit adjusted net margins in the medium to long term.

AI Enablement: The New Competitive Edge

PAGD’s accelerated adoption of artificial intelligence is reshaping its healthcare services:

• Launched the “7+N+1” AI medical product matrix, featuring flagship tools like Ping An Core Doctor for complex disease management and Dr. An, a 24/7 AI family doctor.
• Rolled out an AI-assisted multidisciplinary team (MDT) consultation platform for complex cases, with an 80% accuracy rate for complex disease treatments.
• Achieved a 98% AI-assisted inquiry and consultation accuracy rate, handling up to 4 million daily consultation requests.
• Family doctor service costs per customer dropped by 52% YoY, while middle office operational efficiency improved by 50% YoY.
• Planned investment in AI applications and product R&D exceeds Rmb40m in 2025.

Strategic Synergy with Ping An Group

• Deepening integration with Ping An’s financial businesses, insurers, and corporate client base is driving both user and revenue growth.
• F-end business: Paying user base jumped 34.6% YoY to 20 million in 1H25, fueled by “insurance + health care” product synergies.
• B-end business: Over 3,500 paying corporate clients (up 37.2% YoY) and 3.6 million B-end paying users (up 39.2% YoY), with client renewal rates nearing 80%.
• Family doctor membership base soared 150% to over 35 million, with average annual usage frequency of five times per capita.
• Home-based senior care users grew 83% YoY.
• Ambition to become China’s No.1 healthcare service portal by leveraging Ping An’s ecosystem.

Financial Forecasts and Key Metrics

Operating Cash Flow and Balance Sheet Strength

• Operating cash flow: Rmb99.3m (2024), forecast Rmb250m (2025F), accelerating to Rmb1,239.3m by 2027F.
• Cash/ST investment: Rmb2,044.7m (2024), expected to rise to Rmb5,408.6m (2027F).
• Net cash to equity: -57% (2024), -32.7% (2025F), -48.7% (2027F).
• No short-term or long-term debt on the books.

Guidance, Risks, and Valuation

Guidance:

• Management reiterates double-digit top-line growth for 2025, targeting 16% and 54% CAGRs for revenue and adjusted net profit respectively from 2025 to 2027.
• Continued improvement in adjusted net margins, aiming for double digits in the medium term.
• Further AI investments and expansion of service offerings, particularly in senior care.

Valuation:

• Target Price: HK\$19.00 (raised from HK\$11.00)
• Based on 5.6x 2026F P/S and 71.6x 2026F PE. The stock currently trades at 4.7x 2026F P/S and 59.4x 2026F PE.

Risks:

• Potential changes in sector policy.
• Intensifying competition.
• Weaker-than-expected macroeconomic conditions.

Conclusion: Strong Buy Supported by Growth Engines and AI Leadership

Ping An Healthcare and Technology is delivering on all fronts — scaled revenue growth, surging profitability, and breakthrough AI-driven efficiency. Its strategic alignment with Ping An Group, rapid expansion in senior care, and leadership in digital health AI position it as a top healthcare stock in China. With a raised target price and continued positive guidance, the company stands out as a compelling BUY for investors seeking exposure to China’s digital health transformation.