In Q1 2025, Ping An Healthcare's profits will be released at an accelerated pace. How can Ping An Healthcare break through the bottleneck in medical - insurance collaboration?
On April 23, Ping An Health (1833.HK) released its financial results for the first quarter of 2025.
The financial report shows that Ping An Health achieved revenues of 1.062 billion yuan in Q1 2025, with a year - on - year growth rate as high as 25.8%, far exceeding market expectations. Benefiting from initiatives such as Strategy 2.0 and the continuous optimization of medical - insurance synergy, the company successfully achieved positive revenue growth in 2024. As the dividends of the reform continue to be released, revenues in Q1 2025 returned to double - digit growth.
In terms of profits, the company achieved a net profit of 33.19 million yuan in Q1 2025, and the adjusted net profit for the same period was 57.86 million yuan. Year - on - year, both of these profit - statement items were in a net loss state in the same period last year. Quarter - on - quarter, the net profit achieved in Q1 2025 has exceeded one - third of the full - year profit in 2024. Based on this, it can be judged that the company's profitability is being released at an accelerating pace.
So, why was Ping An Health able to achieve double - digit revenue growth and accelerated profit release in Q1 2025? What are the core highlights of Ping An Health's future valuation?
01 High - synergy business is the key to the accelerated release of performance
The medical - insurance synergy strategy has been the main theme for Ping An Health in recent years. As Strategy 2.0 enters the deepening stage, the company focuses on high - synergy businesses with high gross profit margins, promotes the continuous optimization of the business structure, and has gradually formed a business structure of "insurance + medical health" and "insurance + home - based elderly care". Reflected in the financial data, from the perspective of channels, the F - end and B - end businesses are the pillars of the company's revenues.
The company's financial report data shows that in Q1 2025, the combined revenues of Ping An Health's F - end and B - end corporate health management businesses increased by 43% year - on - year. Based on the company's current revenue structure centered around the F - end and B - end businesses, it is precisely thanks to the continuous in - depth development of the insurance + medical and elderly care membership, medical claims settlement synergy, and medical and health rights and interests service models at the F - end, as well as the rapid expansion of the corporate health management business (B - end), that drove the company's revenues to achieve double - digit growth in Q1 2025.
The high degree of synergy between Ping An Health and the Group makes its "insurance + medical health" and "insurance + home - based elderly care" business models significantly different from other Hong Kong - listed Internet medical concept stocks. This is one of the main reasons for the company's scarcity in the capital market. The Group positions the company as the core flagship of the medical and elderly care ecosystem, empowering the financial main business through differentiated "products + services" and creating huge direct and indirect values.
The financial report of Ping An Group shows that as of the end of March 2025, the number of customers served by Ping An Health was nearly ten million. Meanwhile, among the Group's nearly 245 million individual customers, the medical and elderly care ecosystem has provided relevant service rights and interests to nearly 63% of the customers. Among them, the average number of contracts per customer is about 3.37, and the average AUM per customer reaches 61,200 yuan. These two indicators are significantly higher than those of individual customers who do not enjoy the service rights and interests of the medical and elderly care ecosystem.
It can be seen that a core logic of Ping An Health's business development at the F - end channel is to create cross - selling opportunities for financial businesses by providing medical - related services to the Group's financial customers, upgrading customers from single - product users to multi - product users. Internal enterprises of the Group such as Ping An Life Insurance have all benefited from this. By focusing on the F - end business, Ping An Health not only enhances customer stickiness, but also significantly reduces customer acquisition costs, helping to reduce costs and increase efficiency. Moreover, business models such as medical - insurance synergy and insurance + medical and elderly care membership have extremely high barriers and are difficult to replicate.
Specifically at the business development level, after long - term infrastructure construction, Ping An Health's business platform is well - equipped and has rich functions. Taking the online diagnosis and treatment platform as an example, it currently includes nine major specialties such as dermatology, pediatrics, and traditional Chinese medicine. Patients can conduct remote consultations through text, voice, video, etc., with 24/7 reception and a 60 - second quick response, eliminating the queuing time for offline consultations. By establishing user health records and conducting regular follow - ups, it helps users prevent diseases. In terms of reputation, since the launch of the online diagnosis and treatment platform, there has not been a single major medical accident, and the monthly five - star praise rate of users exceeds 98%.
It is precisely based on Ping An Health's continuous strengthening of its service capabilities that it can provide high - quality, efficient, and convenient services to F - end customers in terms of service experience, thus accumulating a good reputation and forming a brand effect. Supported by its strong service capabilities and high degree of synergy with the Group, after actively exploring and implementing the medical - insurance synergy business model, the company has continuously launched innovative models such as insurance + medical and elderly care membership and medical claims settlement synergy, jointly promoting the rapid growth of F - end revenues during the reporting period.
Ping An Health's B - end business has shown obvious momentum in recent years. The core logic behind its rapid business expansion and long - term high - level revenue growth is that in exploring the corporate health management operation model, the company has innovatively launched product portfolios such as "health entrusted management, membership - based health management services, insurance +", providing B - end customers with a comprehensive, high - quality, and cost - effective corporate employee health management service system. The company's financial report shows that in Q1 2025, the cumulative number of corporate customers served by the company exceeded 2,100, and the number of paying B - end users increased by more than 45% compared with the same period last year.
At the business level, starting from the semi - annual report in 2024, the company adopted a new business caliber, and its core business was divided into three major sectors: medical services, health services, and elderly care services. In terms of the elasticity of performance growth, the revenues of medical services and elderly care services have both maintained positive growth in recent years, and the penetration rates of these two services have significantly increased in 2024, which is an important guarantee for the company to achieve continuous profitability.
The development of medical services and elderly care services is centered around family doctors and elderly care butlers. The business development of medical services mainly relies on a family doctor team that has been double - certified by Peking University International Hospital and the World Organization of Family Doctors, providing customers with an integrated "management + service" solution and forming a word - of - mouth effect to strengthen its brand power. The company's financial report shows that as of the end of March 2025, the company's family doctor membership covered more than 20 million users.
Ping An Health's elderly care business also has its own characteristics. Centered around the "trinity" elderly care butler of intelligent butler, life butler, and doctor butler, it focuses on the four major elderly care scenarios of "medical care, accommodation, nursing, and entertainment", providing users with a standardized, diversified, and three - dimensional one - stop medical and elderly care service network. According to the company's financial report data, as of the end of March 2025, the number of users with rights and interests for the company's elderly care services increased by 15% compared with the end of 2024.
In the field of technological innovation, artificial intelligence has been booming in recent years, and the combination of AI and healthcare is also a key direction. Ping An Health has also maintained long - term and continuous investment in the innovation of medical AI. In terms of major progress, in 2024, after the company upgraded and released the "Ping An Yibo Tong" medical large - scale model and the "Ping An Yijia Ren" doctor workbench; during the reporting period, Ping An Health launched the "Ping An Xin Yi" with the assistance of famous doctors' AI.
"Ping An Xin Yi" is an AI large - scale model supported by digital human technology and medical big data. It is positioned as a digital clone of real doctors, providing users with diversified services such as online consultations, offline medical assistance, auxiliary report and test result interpretation, and medication reminders. It currently covers more than 20 real - world medical scenarios. Looking forward, the company will also maintain a relatively high R & D intensity in the AI field, focusing on expanding the application of AI in various business scenarios and helping to improve the efficiency and quality of medical services.
02 Investment Strategy
Looking back at Ping An Health's performance in recent years, before 2024, there had been a trend of continuous narrowing of performance losses. Full - scale profitability was already within expectations. The achievement of profitability in 2024 exceeded market expectations in terms of timing, and in Q1 2025, there was an accelerated release of performance. It can be said that the transformation and perseverance of the medical - insurance synergy strategy in recent years have been indispensable.
The results of the strategy are reflected in the business. After long - term and continuous optimization of the business structure, high - synergy businesses have gradually become the pillars of the company's revenues, that is, the F - end and B - end businesses are more prominent at the channel level, and at the business development level, a pattern dominated by three major service sectors of medical services, health services, and elderly care services has been formed.
Comparing horizontally with major Hong Kong - listed Internet medical enterprises, in the early stage of the industry's development, the forms of various enterprises were once similar. As the industry has continued to develop, the differentiation of business forms has gradually emerged. Ping An Health emphasizes high synergy with the Group in the development of its core business. Its medical - insurance synergy business form is significantly different from other Hong Kong - listed Internet medical enterprises, which stems from a clear understanding of its own endowments.
As the core flagship of Ping An Group's medical and elderly care ecosystem, relying on the Group's resource ecosystem, it achieves full - chain integration from insurance product design and claims settlement to health management and medical services, breaking the traditional model of separated medical and insurance services. Its product design highlights multi - dimensional full - cycle features. Through the combination of insurance + health management + medical care, it constructs a full - cycle health protection system from prevention to diagnosis and treatment to rehabilitation, while enhancing user health value and product stickiness.
From the perspective of the entire market, the company's medical - insurance synergy operation model is currently difficult to replicate. The extremely high barriers and the uniqueness of the business model are the main reasons for Ping An Health to become a scarce asset in the capital market, and thus a certain valuation premium can be given to it.
Judging from the current revenue structure and operation data, there is still huge penetration potential for the F - end and B - end businesses. Therefore, the company's high - synergy businesses will still maintain high growth potential in the future. In the short term, the B - end business shows stronger performance elasticity. At the same time, medical services and elderly care services are also important highlights for judging future performance growth.
In terms of valuation, although the current stock price of Ping An Health has doubled compared with the low point in September last year, it is still at an absolute low compared with the historical high. Moreover, as the company achieves full - scale profitability, the strong performance expectations also provide strong support for the valuation. Therefore, the long - term valuation opportunities of the company still have a relatively high degree of certainty. Moreover, with the company's strong technological attributes, the professional capabilities of its self - developed medical AI large - scale model have high data barriers. The development of the vertical - domain model not only conforms to the current policy - supported direction but also benefits from short - term thematic investment opportunities in the technology sector.
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