Ping An Health achieved a turnaround for the first time and newly disclosed elderly care service module
2024-08-27
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According to Red Star Capital Bureau on August 27, Ping An Good Doctor (01833.HK, hereinafter referred to as "Ping An Health"), the "first Internet medical stock", recently released its 2024 interim results. This is the first time that Ping An Health has turned losses into profits since its listing on the Hong Kong stock market in 2018.
Prior to this, the commercialization model of Internet medical care was hindered to a certain extent, and it was not easy to achieve profitability. In recent years, Ali Health (00241.HK) and JD Health (06618.HK) have taken the lead in turning losses into profits.
It is worth noting that in this semi-annual report, Ping An Health disclosed the elderly care service module for the first time.
Sixth year of listing on the Hong Kong stock market
Turning profit for the first time
The performance report shows that in the first half of this year, Ping An Health achieved a net profit of 60.629 million yuan and an adjusted net profit of 89.739 million yuan. It turned losses into profits for the first time in its sixth year of listing on the Hong Kong stock market.
However, during the reporting period, Ping An Health achieved revenue of approximately RMB 2.093 billion, a year-on-year decline of 5.8%. The company said that this was mainly due to the delay in revenue recognition due to changes in some business models in the first half of 2024, as well as the high base of revenue in the first half of 2023.
Regarding this performance report of turning losses into profits, Ping An Health stated that the company's strategic business has grown steadily, with the F-end and B-end strategic business revenue increasing by 19.7% year-on-year; among them, the F-end recorded 1.115 billion yuan, a year-on-year increase of 3.4%; the B-end recorded revenue of 713 million yuan, a year-on-year increase of 58.8%.
The F end refers to comprehensive financial customers. Overall, the company provides one-stop, 7*24 hours, proactive medical, health and elderly care services online and offline for users of Ping An Group's comprehensive financial businesses such as life insurance, property insurance, health insurance, and banks. As of the end of March 2024, the average number of contracts and average AUM of Ping An Group's individual comprehensive financial customers who used Ping An Group's medical and elderly care ecosystem services were 1.6 times and 3.6 times that of other individual customers, respectively.
The B-end refers to corporate customers. The corporate health management track is the core driving force for Ping An Health's long-term growth. During the reporting period, the company focused on expanding medium and large enterprises with sufficient corporate health management budgets, clear employee health management plans, and strong payment capabilities and willingness to pay, and provided them with comprehensive solutions for corporate employee health management. As of the end of the reporting period, the company had served a total of 1,748 corporate customers, an increase of approximately 46% over the same period last year.
In addition, Red Star Capital noted that Ping An Health's cost-effectiveness has improved. The company recorded sales and marketing expenses of 367 million yuan, a decrease of 83.6 million yuan, a year-on-year decrease of 18.6%.
The elderly care service module was newly disclosed for the first time
In 2023, the "helmsman" of Ping An Health was replaced by Li Dou as chairman of the board, CEO, and executive director. Judging from Li Dou's resume, he has served as a senior executive in many fields such as medicine, fast-moving consumer goods, insurance, and pension.
In this semi-annual report, Ping An Health disclosed the elderly care service module for the first time, which is listed as one of the three major divisions along with medical services and health services.
From the financial data, in the first half of this year, although the income of elderly care services still has room for improvement, it was 47.314 million yuan, but it increased by 204.8% year-on-year. In addition, the income of medical services in the first half of the year was 1.063 billion yuan, a year-on-year increase of 3%; the income of health services was 983 million yuan, a year-on-year decrease of 16.3%.
Earlier, Ping An Group had fine-tuned its previous top-level strategy of "comprehensive finance + medical health" to "comprehensive finance + medical care and elderly care" in its 2023 annual report.
Li Dou pointed out at the performance release conference that in May this year, the State Financial Regulatory Bureau issued the "Guiding Opinions on the Banking and Insurance Industry to Do a Good Job in the Five Major Financial Articles", supporting insurance institutions to participate in the construction of the elderly care service system. With the intensification of the aging population, the scale of the elderly care market is expected to reach 30 trillion yuan in 2035, close to the scale of the entire Internet medical industry in the same period.
According to reports, Ping An Health executives have said that the company, as the flagship of Ping An Group's healthcare and elderly care ecosystem, is committed to creating the most cost-effective and best-reputation healthcare and elderly care services for insurance and financial clients. The company is full of confidence in the industry's prospects and future development. "Although this industry is also full of challenges, this business is indeed still in a period of high growth."
Editor Deng Lingyao compiled from China Securities Journal, Nanfang Daily, The Paper
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