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<Research>UOB Kay Hian Favors ALI HEALTH, PA GOODDOCTOR; AI Innovation & National Policies Drive CN Internet Healthcare Sector
Recommend
23
Positive
38
Negative
14
The Chinese internet healthcare sector is entering a new phase, driven by tech giants accelerating AI innovation and national policy support, such as Beijing's online initial consultation pilot program, UOB Kay Hian wrote in its research report.

Despite challenges in profitability, leading companies are leveraging AI ecosystems and innovative strategies to deploy long-term sustainable growth.

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In terms of stock selection, UOB Kay Hian is optimistic about ALI HEALTH (00241.HK), keeping its Buy rating and a target price of HKD7.8 unchanged. It is expected that the continuous growth momentum of innovative drugs and healthcare products will deepen ALI HEALTH's synergy with BABA-W (09988.HK).

Favoring PA GOODDOCTOR (01833.HK), UOB Kay Hian has also kept the company's Buy rating unchanged, with a target price of HKD20. With a deepening synergy with PING AN (02318.HK) and the continuous empowerment of AI, PA GOODDOCTOR's revenue and adjusted net profit CAGR for 2025-27 are estimated to hit 16% and 56%, respectively.

UOB Kay Hian's top picks for the Chinese healthcare sector include BEONE MEDICINES (06160.HK), INNOVENT BIO (01801.HK), HANSOH PHARMA (03692.HK), SINO BIOPHARM (01177.HK), HUTCHMED (00013.HK), WUXI BIO (02269.HK), WUXI APPTEC (02359.HK), and ALI HEALTH.

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Stock | Investment Rating | Target Price (HKD)
HUTCHMED (00013.HK) | Buy | 32.5
CSPC PHARMA (01093.HK) | Hold | 8.5
SINOPHARM (01099.HK) | Hold | 20
SINO BIOPHARM (01177.HK) | Buy | 10.5
INNOVENT BIO (01801.HK) | Buy | 130
PA GOODDOCTOR (01833.HK) | Buy | 20
WUXI BIO (02269.HK) | Buy | 52
WUXI APPTEC (02359.HK) | Buy | 152
ALI HEALTH (00241.HK) | Buy | 7.8
SHINEWAY PHARM (02877.HK) | Hold | 8.5
HANSOH PHARMA (03692.HK) | Buy | 50
UNITED LAB (03933.HK) | Buy | 20
BEONE MEDICINES (06160.HK) | Buy | 252
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