The analyst rating from UOB Kay Hian is optimistic about ALI HEALTH (00241.HK) and PA GOODDOCTOR (01833.HK) due to several key factors:
1. AI Innovation and National Policy Support: The Chinese internet healthcare sector is experiencing growth driven by advancements in AI technology and supportive government policies, such as Beijing's online initial consultation pilot program.
2. Long-term Sustainable Growth: Leading companies in the sector are leveraging AI ecosystems and innovative strategies to achieve long-term sustainable growth, despite challenges in profitability.
3. Synergy with Major Players: For ALI HEALTH, the expected continuous growth momentum of innovative drugs and healthcare products is anticipated to deepen its synergy with Alibaba (BABA-W). For PA GOODDOCTOR, a deepening synergy with Ping An (PING AN) and the empowerment of AI are projected to significantly boost revenue and adjusted net profit growth rates.
4. Target Prices and Growth Estimates: UOB Kay Hian has maintained a Buy rating for both companies, with target prices of HKD 7.8 for ALI HEALTH and HKD 20 for PA GOODDOCTOR, reflecting confidence in their future performance and growth potential.
Overall, the combination of technological advancements, supportive policies, and strategic partnerships underpins the positive outlook for these companies in the Chinese healthcare sector.
