Ping An Health Earnings: Revenue Continues to Decline as Direction of Company Is Unclear

We maintain our fair value estimate for Ping An Health at HKD 10 per share after it reported first-half 2024 revenue of CNY 2.1 billion, representing an 8% year-on-year decline. Revenue for the company has now declined year on year for the last six semi-annual reporting periods. While the decline for first-half 2024 was not as severe as full-year 2023, we are unsure how the company can turn around given that management previously hinted that we would begin to see revenue normalize starting in 2024 as the company transitions its business toward selling healthcare services and insurance rather than healthcare products. However, revenue continues to decline as health service revenue declined by 20% year on year while medical service revenue only increased by 3% at the same time.