2Q26 In Line; Mix Shift and AI Empowerment to Support Quality Growth Ahead

Research evidence excerpt

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Update

August 19, 2026 03:16 AM GMT

Ping An Healthcare and Technology | Asia Pacific

Morgan Stanley Asia Limited+

Alexis Yan, CFA

Equity Analyst

2Q26 In Line; Mix Shift and AI

Empowerment to Support

Quality Growth Ahead

Ping An Healthcare and Technology (1833.HK, 1833 HK)

China Healthcare | China

AlphaSignals Earnings Reaction

Unchanged

In-line

Largely unchanged

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Key Takeaways

Stock Rating

Industry View

Price target

Up/downside to price target (%)

Shr price, close (Aug 18, 2026)

52-Week Range

Sh out, dil, curr (mn)

Mkt cap, curr (mn)

EV, curr (mn)

Avg daily trading value (mn)

Equal-weight

Attractive

HK$9.60

31

HK$7.32

HK$24.40-6.57

2,161

Rmb13,599

Rmb6,186

HK$203

PAGD reported 1H26 revenue of Rmb2,484mn (-0.7% YoY) and adj. NP of

Fiscal Year Ending

12/25 12/26e 12/27e 12/28e

Rmb227mn (+38% YoY), both in line with MSe. It implies 2Q revenue -8% and adj.

EPS (Rmb)**

Prior EPS (Rmb)**

EPS (Rmb)§

Revenue, net (Rmb mn)

EBITDA (Rmb mn)

ModelWare net inc

(Rmb mn)

P/E

P/BV

RNOA (%)

ROE (%)

EV/EBITDA

Div yld (%)

0.18

0.12

5,468

313

380

0.20

0.21

5,551

446

420

0.24

0.28

5,926

563

492

0.28

0.35

6,310

693

582

68.8

2.8

(2.2)

10.6

63.8

0.0

30.9

1.3

11.5

4.2

12.4

0.0

26.4

1.2

15.8

4.7

9.0

0.0

22.3

1.2

19.2

5.3

6.4

0.0

NP +34% YoY.

Corporate health mgmt revenue maintained solid 65% YoY growth to Rmb714mn

in 1H. PAGD served 7.7k+ corporate clients in LTM (+73% YoY), totalling

Rmb1.79bn GMV.

Commercial insurance revenue was flat YoY at Rmb1,584.4mn, partly due to

changes in revenue recognition method. Other non-core revenue declined by 62%

YoY.

AI contributed 4.6% gross profit in 1H26 (4.5% in 2025). 11.3k+ diseases can now

be diagnosed by the upgraded AI Doctor, with an accuracy rate of nearly 96%.

We expect a stable recovery in revenue in 2H with tapering headwinds from the

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework

** = Based on consensus methodology

§ = Consensus data is provided by Refinitiv Estimates

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