[ET Net News Agency, 7 January 2020] Citi Research lifted its target price for Ping An
Healthcare and Technology (PAGD)(01833) to HK$75 from HK$60 and maintained its "buy"
rating.
The research house said PAGD, as the largest internet hospital platform in China, has
the potential to play a key role in reforming the healthcare system by (1) allocating
medical resources to rural patients in need, (2) improving diagnostic/prescription
efficiencies, (3) unleashing idle medical resources in public hospitals, (4) promoting Rx
outsourcing from public hospitals, and (5) increasing in the long term
commercial-insurance participation in China.
Citi raised its revenues for 2019/20/21 to reflect the policy tailwinds from the
reimbursement of online medical consultation and lower SG&A expenses on saved promotion
activities and improved efficiency. (KL)