Recently, Ping An Health released a joint announcement, revealing two important pieces of information:

1) Ping An of China plans to make an offer to acquire Ping An Health for HK$6.283 billion. Once the transaction is completed, Ping An Health will become an indirect non-wholly owned subsidiary of China Ping An Insurance (Group) Co., Ltd. and will be included in Ping An Group's consolidated financial statements.

2) After the offer is delivered, the offeror hopes that Ping An Health will continue its existing main business, has no intention of redeploying any fixed assets or terminating the employment of employees, has no intention of privatizing Ping An Health and believes that there is no reasonable possibility of privatization.

This announcement may indicate that in the future, while maintaining its independent operations, Ping An Health will be able to make more full use of China An's rich resources in the fields of finance, technology and medical care, thereby further enhancing its capabilities in medical services and health management. Competitiveness in other fields.

In addition, Ping An Health previously announced that it would pay a special dividend of HK$9.7 per share to shareholders from the reserve share premium account, bringing the total dividend distributed to as high as HK$10.85 billion.

It is worth noting that the company's reserve share premium account is also the capital reserve project. As of June 2024, Ping An Health's total equity premium is approximately 20.343 billion yuan, of which the premium generated by capital injection activities is 19.662 billion yuan.

In other words, Ping An Health's special dividend payment mainly comes from previous company fundraising income. Distributing cash to shareholders in the current volatile capital market is indeed an effective measure to meet market expectations and increase market value.

In this regard, Ping An Health stated that the company currently has sufficient working capital. In order to repay shareholders 'support and increase capital utilization, the company's board of directors approved the payment of special dividends. This dividend payment plan is in line with the overall interests of the company and shareholders.

Of course, the long-term value judgment of Ping An Health will ultimately return to the company's fundamentals and the overall trend of the capital market. These factors are the key to determining the company's long-term investment value.

Stabilize growth with underlying logical support and accelerate the release of profitability

At present, Ping An Health's "3+2+3" managed medical strategy has shown remarkable results, which is reflected in the continuous optimization of its financial situation.

The financial report shows that in the first half of 2024, the company's revenue reached 2.093 billion yuan, and its net profit reached 60.629 million yuan, turning losses into profit year-on-year. This is the first time it has achieved semi-annual profit since its listing, and the adjusted net profit reached 89.739 million yuan, further proving the company's profitability.

Looking at the business level, Ping An Health's F-end and B-end businesses have achieved dual growth in revenue and paying users, which is a direct reflection of the successful implementation of the company's strategy.

Among them, through deep integration into Ping An Group's comprehensive financial business scenario, the number of paying users in the first half of the year was approximately 14.8 million, a year-on-year increase of 7%. This growth not only reflects users 'recognition of services, but also shows Ping An Health's synergy within the group. As of the end of March 2024, the number of contracts per customer and AUM per customer for Ping An Group's individual comprehensive financial customers using Ping An Group's medical and elderly care ecosystem services are 1.6 times and 3.6 times respectively that of other individual customers. This data further confirms Ping An Health Services appeal and competitiveness.

At the same time, the service capabilities and product quality of the B-end business are also constantly improving, and customer penetration has achieved rapid growth. The number of paying users in the first half of the year was approximately 2.6 million, a year-on-year increase of 2%. At present, the cumulative number of companies served by the company has reached 1748, an increase of approximately 46% compared with the same period last year. This growth rate occupies a leading position in the market, demonstrating Ping An Health's strong competitiveness and broad development space in the B-end market.

It can be seen that Ping An Health's fundamentals are strong, and its strategic execution and business development have shown positive trends. These factors together constitute a strong support for the long-term value of Ping An Health, indicating the company's future growth potential and investment value.

Hong Kong stocks have high allocation value and opportunities in the medium and long term

From the overall macro level, against the background of active policies, the investment attractiveness of Hong Kong stock assets is continuing to increase. This trend has been recognized by many professional securities firms and institutions. Among them, Ping An Health, as a leading Internet medical enterprise, has received great attention and positive comments from these professional organizations.

For example, at the 2024 National Two Sessions, Lei Tianliang, a representative of the National People's Congress and chairman of the Hong Kong Securities Regulatory Commission, suggested that the State Administration of Taxation and the mainland and Hong Kong securities regulatory authorities actively study and optimize the relevant tax systems to reduce the dividend tax level of individual investors in the Hong Kong Stock Connect, so that it is The A-share market is flat and the entry standards for mainland investors in the Hong Kong Stock Connect are lowered.

China Galaxy Securities Research News pointed out that the valuation of Hong Kong stocks has been adjusted back to a relatively low level, and profitability has shown a certain degree of resilience. The key to the subsequent market trend still lies in the intensity of domestic policies to stabilize growth and the pace of restoring economic fundamentals. As incremental fiscal policies increase, the domestic economy gradually recovers, and the medium-and long-term allocation value of Hong Kong stocks is relatively high. Among them, the technology sector still has high investment opportunities, especially the segments with both denominator and numerator expectations that improve are expected to benefit more, including sectors such as the Internet. At the same time, despite the disturbance of overseas uncertainties, the high dividend strategy of Hong Kong stocks remains attractive.

Specific to sector analysis, China Merchants Securities emphasized in a recently released research report that the field of medicine and health is one of the core areas of AI applications, bringing both experience and efficiency to people's daily health management and medical treatment behaviors. Depending on the end customers, these applications can be divided into three major directions: hospitals, pharmaceutical companies and individuals. We are optimistic that AI technology can empower all aspects of health management and medical services, bringing disruptive changes to people's daily health management and medical treatment behaviors. With the application of technologies such as Wenxinyiyan and GPT-4 in the medical field, leading companies are expected to benefit first. Therefore, investors are advised to pay attention to those Internet medical companies that already have a certain traffic and data foundation and actively introduce AI models, such as Ping An Health.

All in all, Ping An Health has demonstrated significant leadership and influence in the fields of health management and medical services through continuous technological innovation and market expansion. At the same time, with the in-depth application of AI technology in the medical field, Ping An Health is expected to further consolidate its industry position and achieve rapid business growth and significant improvement in profitability.

Therefore, based on the underlying logic of stable growth and good opportunities in the capital market, Ping An Health is expected to occupy a more important position in the technology and medical health sectors, and its long-term investment value and valuation improvement potential cannot be ignored.