Analyst Jill Wu of CMB International Securities maintained a Buy rating on Xunfei Healthcare Technology Co., Ltd. (2506 – Research Report), reducing the price target to HK$166.69.
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Jill Wu has given her Buy rating due to a combination of factors that highlight Xunfei Healthcare Technology Co., Ltd.’s strong performance and promising future prospects. The company reported impressive revenue growth in 2024, with a notable acceleration in the second half of the year, driven by robust demand for its medical AI services. This growth was accompanied by significant improvements in cost structure, leading to a substantial narrowing of the net loss margin.
Moreover, Xunfei Healthcare has successfully enhanced its revenue mix, with increased contributions from both business-to-business and business-to-consumer segments. The company has expanded its reach, serving a large number of hospitals, including many top-tier institutions in China. Additionally, the recovery in the government segment and advancements in large language model technologies further solidify its leadership in the healthcare AI market. These factors, combined with favorable policy trends and a strong customer base, position Xunfei Healthcare for continued growth, justifying the Buy rating.