20260820-招银国际-讯飞医疗科技-02506.HK-Robust_1H26_performance_driven_by_AI_Health_Partner_5页_1020kb

Xunfei Healthcare (2506 HK) Summary

Core Content and Key Highlights

Xunfei Healthcare (2506 HK) reported robust first-half of 2026 (1H26) performance with revenue reaching RMB446 million, a 49.4% year-over-year (YoY) increase. This represents 40% of the full-year revenue forecast and exceeds the historical average of ~33%. The company's operating efficiency improved significantly, with the SG&A expense ratio dropping by 18.5 percentage points (ppts) and the R&D expense ratio falling by 4.4 ppts, leading to a substantial narrowing of the net loss margin to 13.3% (-11.5ppts YoY).

Given the strong 1H26 performance, the 2026E revenue forecast was raised by 7.6%, and the target price was revised to HK$99.58 (from HK$92.55). The stock currently trades at HK$71.25, with a 39.8% upside to the target price.

AI Health Partner

• Revenue Growth: RMB182 million (+75% YoY), driven by Imaging Cloud and post-discharge management.
• Imaging Cloud Expansion: After winning the Guangxi provincial imaging cloud project in February 2026, Xunfei connected over 370 Grade II+ hospitals in the region. This led to a doubling of annual paid digital-imaging visits from 36 million in 2025 to 72 million in 1H26.
• Post-Discharge Management: Sales revenue increased by 222% YoY, with growth in both the number of hospitals and patients served.
• Regional Expansion: The Ningxia project win and ongoing provincial tenders in 2H26E are expected to continue driving growth.
• Recurring Revenue: AI Health Partner is deployed in hospitals but paid by patients, creating a recurring revenue model that improves growth visibility and business resilience over time.

AI Medical Assistant

• Revenue Growth: Increased by 47.5% YoY, primarily driven by hospital-end solutions.
• Client Expansion: Served over 77,000 primary healthcare (PHC) institutions across 828 districts/counties and more than 700 graded hospitals, up from 77,000 PHCs, 806 districts, and 600+ hospitals at the end of 2025.
• AI Diagnostic Impact: The General Practice CDSS has provided over 1.2 billion AI-assisted diagnostic suggestions and generated more than 490 million standardized electronic medical records.
• Leadership Position: The company's long-standing accumulation of high-value medical data and clinical resources is creating a meaningful model-iteration flywheel.
• Policy Support: Strengthening policy support for AI-assisted diagnosis is expected to help solidify its dominant position in the market.

Valuation and Key Risks

• Valuation: The revised target price of HK$99.58 is based on a 9x 2026E price-to-sales (P/S) ratio, broadly in line with its peers.
• Key Risks:
  • Slower-than-expected regional expansion.
  • Intensifying competition in AI-enabled healthcare solutions.

Financial Performance Summary

Shareholding and Stock Data

• Market Cap: HK$8,612.6 million

• Share Performance:

  • 1-month: +3.1%
  • 3-month: -7.4%
  • 6-month: -18.2%

• Shareholding Structure:

  • iFlytek: 49.4%
  • Hefei Zhengsheng: 16.1%

Analyst Recommendation

• Rating: BUY (Maintain)
• Target Price: HK$99.58 (up from HK$92.55)
• Upside/Downside: 39.8%

Peer Comparison

Earnings Revision

Profitability Metrics

Key Financial Ratios

Analyst Certification and Disclosures

• The research analyst certifies that the views expressed accurately reflect their personal views and that their compensation is not directly or indirectly related to the specific views in the report.
• The analyst confirms no trading in the stock within 30 days prior to the report and no intention to trade within 3 business days after the report is issued.
• CMBIGM or its affiliates may have investment banking relationships with the issuers covered in this report.

Disclaimer

• There are risks involved in transacting in any securities.
• The information in this report is not suitable for all investors.
• CMBIGM does not provide individually tailored investment advice.
• Past performance does not guarantee future results.
• The report is for the use of intended recipients only and may not be reproduced or distributed without prior written consent.

Distribution Restrictions

• United Kingdom: Only for persons falling within Article 19(5) of the Financial Services and Markets Act 2000 or Article 49(2) (a) to (d) of the Order.
• United States: Intended solely for "major US institutional investors" and not for distribution to other persons.
• Singapore: Distributed by CMBISG, an Exempt Financial Adviser, and legal responsibility is accepted only to the extent required by law for non-accredited investors.

CMBIGM Ratings

• BUY: Potential return of over 15% over the next 12 months.
• HOLD: Potential return of +15% to -10% over the next 12 months.
• SELL: Potential loss of over 10% over the next 12 months.
• NOT RATED: Stock is not rated by CMBIGM.
• OUTPERFORM: Industry expected to outperform the relevant broad market benchmark.
• MARKET-PERFORM: Industry expected to perform in-line with the relevant broad market benchmark.
• UNDERPERFORM: Industry expected to underperform the relevant broad market benchmark.