Online follow-up consultations and prescription drug purchases are included in medical insurance, which will increase the penetration rate of online diagnosis and treatment.
The outbreak has forced more people to switch offline medical care to online. This has a favorable impact on Ping An Good Doctor, and many institutions have raised the company’s target price.
According to a report by Zhitong Finance on March 15, JP Morgan Chase gave Ping An Good Doctor (01833.HK) an “Overweight” rating and raised its target price to HK $ 90.
JPMorgan Chase said the outbreak was the main catalyst to promote the popularity of online medical services in China. As a leader in this field, Ping An Good Doctor plays an active role in the “anti-epidemic”, and the number of new users and active users has grown rapidly. With the accelerated introduction of favorable policies and the implementation of medical insurance payments, it will benefit for a long time.
In addition, on March 12, Huaxing Securities issued a report that Ping An Good Doctor’s core business online medical services will benefit from industry growth and may become the next profit driver. It covers Ping An Good Doctor for the first time and gives a “Buy” rating with a target price of HK $ 100.
The report issued by UBS on the same day pointed out that the current share price of Ping An Good Doctor does not fully reflect its long-term growth potential, maintain the “Buy” rating, and change the target price from the original HK $ 60.13 Raised to HK $ 90. Ping An Good Doctor is expected to break even in 2021.
The outbreak has forced more people to turn offline medical care to online, or it will have a favorable impact on Ping An Doctors. According to Ping An Good Doctor, during the epidemic of the new crown pneumonia, the platform visited 1.11 billion people, the number of new registered users of the App increased by 10 times, and the daily average number of new users increased by 9 times.
In addition, the promulgation of national policies will also help users cultivate online medical treatment habits. On March 2, the National Medical Insurance Bureau and the National Health and Health Commission jointly issued the “Guiding Opinions on the Promotion of” Internet + “Medical Insurance Services During the Prevention and Control of New Coronary Pneumonia Epidemic Situation.” The “Opinions” clearly includes the eligible “Internet +” medical service expenses into the scope of medical insurance payment. The online review services for common diseases and chronic diseases provided by eligible Internet medical institutions for the insured can be included in the scope of payment of the medical insurance fund. In addition, designated medical institutions are encouraged to provide “in-person” drug purchase services, and explore the promotion of direct settlement of drug dispensing at designated retail pharmacies, innovative distribution methods, and reducing the risk of crowd gathering and cross infection.
A research report released by China Merchants Bank on March 5th pointed out that Frost & Sullivan data shows that China has about 560 million online consultations in 2019, and its online penetration rate is about 6.2%, which is relatively low. Online follow-up consultations and prescription drug purchases are included in medical insurance, which will increase the penetration rate of online diagnosis and treatment.