On February 29, affected by the quarterly adjustment of MSCI, the trading volume of Ping An Health (Hong Kong stock **name: Ping An Good Doctor), Xtep International, China Software International and many other ** stocks increased sharply, and the turnover increased by up to 10 times compared with the previous day!
According to LiveReport big data statistics, the constituents of the MSCI Global Small Cap Index rose by an average of 072%, with an average turnover of 3HK$500 million, significantly exceeding the previous day's turnover of HK$300 million, and the liquidity increase was as much as 6 times.
Even in the Hong Kong market, where liquidity is weak, institutional investors are still very active in related transactions. There may be some indicative significance behind the bottom volume.
Among the active **, Ping An Good Doctor (1833.)HK) is a leader in healthcare management, and its valuation has reached a low-lying position as the stock price has continued to decline recently. At present, the company has about 8.2 billion yuan in cash (about 3.6 billion yuan in fixed deposits and about 4.6 billion in monetary funds), but the market value is only about 13.4 billion Hong Kong dollars! Is there a rare opportunity in it?
1. The first share of Internet medical care, with unique competitive advantages
As the flagship platform of insurance giant Ping An Group to lay out the medical and pension ecology, Ping An Health is also a Hong Kong stock"The first stock of Internet medical care", which was listed on the Hong Kong Stock Exchange in May 2018.
Ping An Health adopted"Managed careFamily Doctor Membership+o2oHealth care services"The development strategy of Ping An Family Doctor is an important hub, and the integration of payers on behalf of the payer includes online to store to home"Three to"Enrich medical and health service resources to provide customers with cost-effective and life-cycle medical and health services.
*: The company's official website.
The abundant resources from the F-end payers such as the financial and insurance side and the financial bank side of Ping An Group have enabled Ping An Health to achieve unique advantages that traditional Internet medical companies do not have.
According to the 2023 interim report data, the company has cumulatively served more than in the past 12 months10,000 paying customersAmong them, the number of paying users from Ping An Group's comprehensive financial channels exceeded 38 million, nearly 2The penetration rate among the 2.9 billion personal finance users reached about 166%。In addition to the F-end channel, through the two core solutions of physical examination+ and health management+, the company's paying customers from the B-end also reached about 3.9 million, an increase of 32 compared with the end of 20224%。As of June 30, 2023, the cumulative number of B-side service enterprises of the company is close to 2,000, an increase of 225%。
*: Financial report of the company.
On the C-side, with the help of the rich platform traffic precipitated by years of deep cultivation in the industry, and"Family Doctor Membership"With unique competitive advantages, the company has successfully created a complete closed loop of medical and health O2O services.
As of June 30, 2023, the company has established a team of about 50,000 internal and external doctors covering 22 departments, signed nearly 2,400 famous medical experts, nearly 4,000 cooperative hospitals, and 22 cooperative pharmacies60,000 homes, providing users with 7x24 hours of professional health services.
Second, the strategic adjustment has been basically completed, and the profitability has begun to increase significantly
By optimizing resource allocation and adjusting the operating model, Ping An Health's low-strategy synergistic business adjustment has been basically completed, and the company's strategic business revenue has achieved significant growth. According to the interim report, the company achieved revenue of 22 in the first half of 2023200 million yuan, and the revenue decreased by 21% year-on-year due to business adjustment5%。
Among them, the medical service business achieved revenue of 10 in the first half of the year300 million yuan, accounting for about 465%, down 8 percent year-on-year9%；The health services business achieved revenue of 11900 million yuan, accounting for about 535%, down 299%。The health services business, which has low synergies with managed care strategies and low gross profit margins, will be more affected.
However, the strategic adjustment bringsThe increase in profitability is significant, Ping An Health's overall gross profit margin increased from 26 in the same period last year6% increase by 56 percentage points to 322%。Among them, the gross profit margin of the medical service business increased from 37% to 429%, and the gross profit margin of the health services business increased from 195% to 229%。
*: Financial report of the company.
After the profitability improved, the company had a net loss of 2400 million yuan, adjusted net loss of 2500 million yuan, compared with the same period last year, the company'sThe scale of the loss narrowed by nearly half。In terms of cash flow, the company's cash outflow from operating activities in the first half of 2023 is only 06.7 billion yuan, also a lot of improvement over the same period last year.
*: Financial report of the company.
In addition, the company has reservesAbundant fundsAt present, the cash on the books is as high as 8.2 billion yuan, including 4.6 billion yuan of monetary cash and 3.6 billion yuan of fixed deposits, and there are zero short-term borrowings. It can be said that Ping An Health has gradually gotten rid of the past in the industry"Burn money for the market"Invalid mode,Embark on the path of sustainable development through intensive farming
3. It is expected to turn profitable next year, and the current stock price is seriously undervalued
According to the consensus of more institutions**, Ping An Health's annual revenue is expected to be 465.9 billion yuan, 528.2 billion yuan, corresponding to the growth rate of revenue. 4%；Net income is expected to be -5100 million yuan, -23.5 billion yuanbegan to turn losses into profits。The agency has a more consensus target price of 18HK$26, a premium of more than 50% to its current share price.
However, due to the drag of the Hong Kong market environment, Ping An Health's share price performance in the past three years has not been outstanding. In 2023, the company's stock price will accumulate by 166%, compared to 33% since 2024. In fact, the current share price is already grossly undervalued.
As of the end of February 2024, Ping An Good Doctor's PE (TTM), PB (MRQ) and PS (TTM) were respectively. 94 and 225, that is, the price-to-book ratio is already there"Breaking"and the price-to-sales ratio is also at the lowest level since listing. The current market capitalization of the company is approximately100 million Hong Kong dollars is only about the cash on the company's booksFold.
In fact, not only Ping An Health, but also the Hang Seng Technology Index (HSTECHhi) is also at historically low valuation levels. By the end of February, the PE (TTM) of the Hang Seng Tech Index had fallen to 1783 times, the valuation quantile is at 565% low.
*: livereport big data, data as of 2024-2-29
However, everything is cyclical, and it is precisely because of the volatility of the market environment that many good companies have undervalued opportunities. When the waves come again, only those who have taken their seats in advance can stand at the head of the tide.