Hospitals, Labs & Internet Health – 1H26 Earnings Preview

Research evidence excerpt

Hospitals, Labs & Internet Health – 1H26 Earnings Preview

Idea

July 20, 2026 09:36 AM GMT

Morgan Stanley Asia Limited+MChina Healthcare | Asia Pacific Alexis Yan, CFA

Equity Analyst

Hospitals, Labs & Internet Alexis.Yan@morganstanley.com +852 2239-7953

Health – 1H26 Earnings Preview

Quality hospitals and clinical labs under our coverage are seeing

China Healthcare

signs of earnings inflection into 2026 via prudent operations, Asia Pacific

Industry View Attractive

notwithstanding still-tight policy amid tepid macro trends.

What’s Changed

Healthier balance sheets also leave more flexibility for JD Health International Inc.

shareholder returns and M&A, including overseas. (6618.HK) From To

Price Target HK$64.00 HK$49.00

Key Takeaways Aier(300015.SZ)Eye Hospital Group From To

Price Target Rmb11.00 Rmb8.60

Public insurance settlement remains challenging under constrained budgets and

deepening DRG/DIP reform, leaving healthcare service industry growth muted. Guangzhou Kingmed

Diagnostics (603882.SS) From To

That said, quality hospital and clinical labs under our coverage are seeing Price Target Rmb22.00 Rmb24.50

earnings stabilization to recovery in 1H26, via prudent operations and mix shifts. Dian Diagnostics Group Co Ltd

(300244.SZ) From To

With healthier balance sheets, many are also executing shareholder return Price Target Rmb15.60 Rmb18.00

initiatives, while simultaneously prudently sourcing M&A opportunities. Rating Equal-weight Underweight

For internet health, while evolving policy and a soft macro have disrupted 2Q Ping An Healthcare and

Technology (1833.HK) From To

growth, low penetration leaves the structural market potential unchanged, we Price Target HK$16.00 HK$9.60

think.

Order of preference: OW on Beauty Farm, GST, Hygeia, Adicon; EW on JD Health,