CITIC Construction Investment: Medical Insurance Collaboration Model Promotes Steady Revenue Growth and Maintains Ping An Health (01833) “Buy” Rating

The Zhitong Finance App learned that CITIC Construction Investment released a research report saying that Ping An Health (01833) achieved revenue of 1.06 billion yuan in 2025Q1, an increase of 26% over the previous year, achieved adjusted net profit of 58 million yuan, and maintained rapid growth in revenue and profit. The company has vigorously promoted strategic transformation. Innovative business models such as insurance+medical care membership and medical claims collaboration have grown rapidly since this year, and continuously promoted the development of F-side and B-side strategic business.

As the company becomes a subsidiary of Ping An Group, the collaboration and empowerment of Ping An Group's comprehensive financial business in scenarios and products will give full play to and realise the company's advantages in medical and pension platforms. The company is expected to achieve revenue of 53.3, 59.2 and 6.66 billion yuan in 2025-2027, with year-on-year growth rates of 11%, 11%, and 12%. Maintain a “buy” rating.

CITIC Construction Investment's main views are as follows:

Revenue and profit are growing rapidly, and innovative models are gradually showing potential

Business collaboration between the company and the group has continued to advance, and innovative business models such as corporate insurance+medical care membership and medical claims collaboration have grown rapidly since this year; at the same time, B-side companies have continued to promote “commercial insurance+health insurance entrust+medical and health service” products. The cumulative number of enterprise customers served in 25Q1 exceeded 2,100, and the number of B-side paying users increased by more than 45% over the same period of the previous year, jointly driving the company's F-end+B-side enterprise business revenue growth of more than 43%.

25Q1, the company launched the famous doctor AI assistant service “Ping An Core Medicine”, which can provide users with diversified services such as online consultation, offline medical assistance, assisted interpretation of reports and test sheets, and medication reminders. Currently, it has covered more than 20 real medical scenarios.

Ping An Health is combined with Ping An Group, and business collaboration continues to deepen

After choosing the share-based dividend plan, Ping An Group, the majority shareholder of the company, held an interest in Ping An Health rose to 52.7%. This merger is conducive to further strengthening the company's position as the flagship of Ping An Group's healthcare and pension ecosystem.

As of the end of September '24, the average number of Ping An Group personal comprehensive financial customers using the company's services was the same. Average AUM was 1.6 times and 3.9 times that of other customers, respectively; in 24 years, there were 31.35 million F-side paying users, with a penetration rate of about 13% among Ping An Group's 240 million personal finance users.

In the medium to long term, the company still has plenty of room to improve its penetration rate. The total number of B-side service companies in 24 years reached 2,049, an increase of 36% over the previous year. Of these, 86% of customers came from Ping An Group channels. Currently, Ping An Group has more than 56,000 healthcare-related paying enterprise customers. With the company's continuous development of high-quality enterprise customers and cross-coverage of products and services, the company's B-side business is expected to continue to grow rapidly.

25-year outlook: Steady increase in revenue and gradual improvement in profit margins

The company's strategic transformation was gradually adjusted and completed in '23, and gradually got back on track in '24, returning to the growth trajectory. With the merger of the company and Ping An Group in early '25, business collaboration is expected to be further strengthened. The F-side business is expected to accelerate growth through the implementation of new models and the gradual increase in customer penetration. The B-side business continues to grow through group channels and independent expansion channels, adding efficiency improvements and cost optimization brought about by superposition information technology. The company's revenue is expected to achieve double-digit growth, and profit margins are expected to continue to improve as the company's operational efficiency continues to improve.