Notes on Ping An Healthcare and Technology
After spiking massively in mid-Feb on the back of news that ARK Funds was buying the stock, PAGD (Ping An Healthcare and Technology Co Ltd) has seen a massive correction until now.
ATEC tends to find such setups interesting. To us, PAGD is a fine example of how AI and Cloud are being used to improve efficiency, scale and expand markets in the traditional medicine/medical industry.
The overcrowding and inefficiencies of China’s hospitals are well documented. PAGD, through its own in-house team of doctors, is able to offer comprehensive AI-assisted consultation, prescription, appointment making, and even 1-hour drug delivery processes, all through its mobile app. In a few short years, the company already commands more than 60% of the MAU base, way dwarfing all other competing online medical platforms in China.
ATEC is also very impressed with how PAGD, at the same time, continues to grow its influence in the medical ecosystem. By now the company has already partnered with more than 3,000 hospitals, over 2,000 heath-check centres, over 90,000 pharmacies and so on, linking them to its Cloud system and effectively creating a pseudo consolidated national healthcare cloud database.
Not only does it improve efficiencies for the offline healthcare facilities, but it also enhances PAGD’s own internal AI system by providing it with a continuous feed of relevant diagnostics, treatment and patient history records. Coupled with its relationship with its Parentco Ping An Insurance, these advantages can prove rather insurmountable to competitors over time.
The stock is starting to show some signs of life recently as it takes out its 50-day moving average. How high can it go? ATEC is not sure for now. So long as HK$91 holds, we are, for now, eyeing the February spike high.
