On the evening of April 24, Meinian Health Industry Holdings Co., Ltd. (hereinafter referred to as “American Health”, 002044.SZ) released its 2023 annual report showing that the company achieved operating income of 10.894 billion yuan, an increase of 26.44%; net profit to the mother of 506 million yuan, an increase of 1,065 million yuan over the same period of the previous year; total number of visitors increased 13.0% year on year, comprehensive customer unit price increased 11.2% year on year, and achieved strong growth in the first year of post-epidemic recovery. The company said that in 2024, it will adhere to “sustainable growth driven by digital intelligence, diversified growth and high-quality profits”. According to several brokerage research reports, American Health's 2023 revenue exceeded expectations, turning losses into profits. As the company's revenue scale expands and profitability continues to increase, they are optimistic about the company's long-term development.
Industry insiders said that demand in the medical examination industry recovered after the epidemic and entered a virtuous cycle of relying on quality improvement to drive price increases. As a leading preventive medicine company, American Health continues to improve internal operating efficiency, while actively expanding external cooperation, increasing AI applications, implementing the “All in AI” strategy, and entering the golden track of “AI+ Healthcare”, opening up a new performance growth curve.
All in AI Focus on the $3 trillion health management market
This year's “Report on the Work of the Government” first proposed the “Artificial Intelligence +” initiative to accelerate the formation of a new quality of productivity powered by artificial intelligence. Looking at the secondary market, “AI+ healthcare” has frequently attracted a wave of attention, and mainstream institutional opinion also believes that AI+ healthcare is expected to lead the medical industry into a new era of development. China Merchants Securities believes that the global “AI+ Healthcare” market is over 5 billion US dollars and will continue to grow rapidly. According to the Global Watch Report, the compound annual growth rate of the “AI+ Healthcare” market is expected to exceed 29% and reach 70 billion US dollars in 2032.
Massive data is a prerequisite for the rapid development and implementation of AI technology. As the largest personal health examination data center in China, American Health has accumulated over 100 million image data and 200 million structured health data. Recently, the company-led national key research and development program “Health Examination Big Data Cloud Platform Construction” project has been officially completed, and data collection of more than 130 million medical examinations has been completed, helping to enhance the value of data assets in the health examination industry and optimize the AI model through continuous training, and laying a solid foundation for the “All in AI” strategy in the US.
In fact, American Health has been actively involved in the AI circuit for 7 years. As early as 2017, AI technology has been widely used in the company's products, covering AI diagnosis of pulmonary nodules, AI diagnosis of stroke, AI diagnosis of brain cognition, AI diagnosis of coronary artery calcification points, AI diagnosis of electrocardiogram, AI diagnosis of breast ultrasound, AI quality control of ultrasound, AI diagnosis of eye bone age, etc. At the end of 2023, American Health added a new “AIGC concept”.
The reporter learned that Meinian Health cooperated with HUAWEI CLOUD and Runda Medical to develop the first domestic health management AI robot, “Health Xiaomei”, which is the core project of Meinian Health to fully implement the “All in AI” strategy. Based on advanced big model technology, “Health Xiaomei” will provide all-weather online intelligent and personalized personal health management services, with the ability to build a full-life cycle digital health file, three-dimensional digital twins, large model intelligent interaction, real-time summary analysis of health risks, make health suggestions based on the health management model, formulate personalized health plans, and AI robot assistance Health management implementation and other functions.
“In terms of internal operation, the 'Health Xiaomei' digital health manager backstage will be fully connected with the SAAS cloud platform for intelligent medical examination management, and digitally upgraded to enable the management of the entire medical examination process. Through seamless data docking and process collaboration, it intelligently optimizes and enhances every aspect from appointments, medical examinations, and report interpretation to subsequent health management and intervention.” Meinian Health said that the new platform will also strengthen in-depth cooperation with partners such as hospitals, insurance companies, health management centers, etc., to build a more complete health management ecosystem to provide remote video reading and specialized services for chronic diseases System, facts Back-end health management value-added services such as Medical Green Connect, innovative health insurance, and nutritional product customization provide users with personalized and accurate medical examination suggestions and product recommendations, and comprehensively enhance the user experience.
Industry insiders said that looking ahead to the next milestone, “Healthy Little Beauty,” which has both big model capabilities and the advantages of big health data, will spawn a series of services and products such as digital therapy and smart wearable devices to help Meinian Health build an ecosystem with strong AI attributes.
From the upgrade of “All in Digitalization” to “All in AI,” it is easy to see that Mei Nian Health, which has data and application scenarios, is using new AI technology to enable personalized medical examination services and upgrade and expand the digital health management business. According to iResearch's forecast, the overall health management market will exceed 300 billion yuan by 2028, with a compound annual growth rate of 12.5% between 2023-2028. In other words, American Health is rapidly moving from a physical examination track to a wider field of health management, and is in a market that will usher in an incremental market of 3 trillion yuan.
Meinian Health said that the company will further fully implement the “All in AI” strategy, continue to deeply explore the asset value of health data, continue to deepen AI big data innovation and AIGC technology product capabilities, continue to promote the deep integration and innovative application of digital intelligence AI technology and medical services, make every effort to build a leading domestic “AI+ Health Management” benchmark platform, and is committed to upgrading from a leading enterprise on the preventive medical circuit to a leader in digital health management throughout the life cycle.
It is worth mentioning that it was revealed that Mei Nianjian will carry out data resource registration work and gradually incorporate digital assets into the company's financial statements, including data products, technology platforms, digital marketing tools, etc. accumulated during operation to optimize the management of digital assets. “The company's move can more clearly show the company's asset composition and data resource value, and also inject new vitality into the company's future development.” Industry insiders believe that big data on health examinations, as an emerging medical resource and new quality productivity, will further promote high-quality development in the US.
A sharp rise in volume and price begins a new growth cycle
According to annual report data, American Health's revenue in 2023 broke 10 billion dollars, revenue reached a record peak, net profit increased dramatically, handed over an impressive questionnaire. After several years of dormant period, American Health is fully returning to the path of rapid growth.
Judging from the profit curve, traditional industries usually begin the early stages of digital transformation, and capital investment is difficult to immediately present on the profit side; they all require a certain return cycle. Subsequently, along with the gradual increase in business volume and the release of scale effects, upfront costs were continuously diluted, and profits often showed a gradual increase in profits. In 2023, the company successfully turned a loss into a profit, sending a strong signal that it has entered the harvest period.
Judging from market demand, residents' health attitudes have improved under the influence of the epidemic, and demand for special examinations for basic chronic diseases and high-end health management is strong. Gradually, it is becoming a strong demand for medical examinations, and diversified and personalized health demand is expected to continue to grow.
In the context of an industry where health consumption continues to upgrade, American Health has entered a healthy development channel driven by demand and a sharp rise in volume and price. In the past two years, the unit price of health customers in the US has maintained double-digit growth. Looking at 2023, the comprehensive passenger unit price for the whole year increased by 11.2% year-on-year. Meinian Health said that increasing customer unit prices is a long-term job. “The company's next round of customer unit price growth will be driven more by optimizing the customer structure and launching innovative products.”
“Group inspection is the cornerstone. Growing bigger and stronger depends on individual inspection. The two complement each other.” The company insists on the collaborative development of group inspection and individual inspection. On the one hand, the company uses the Group Inspection and Development Center to unify and coordinate the refined management of B-side business across the country, continuously strengthen the B-side government and enterprise customer system, and is committed to achieving B-side business upgrades led by government and enterprise customers. According to information, the share of corporate government and enterprise customers continues to rise. In fact, in recent years, large enterprises have placed more emphasis on comprehensive solution capabilities when choosing medical examination institutions. As a leading company, it is not difficult for Meinian Health to be shortlisted. With its unique advantages such as extended post-examination health management services and strong digital capabilities, it can occupy more market share.
On the other hand, the company uses individual inspection development centers to rapidly promote the C-side customer operation system. The personal inspection business has improved rapidly, and online multi-channel operations have fully blossomed. “In 2023, the performance of traditional e-commerce personal inspection channels such as Tmall and Jingdong nearly doubled compared to the same period in 2022,” Meinian Health revealed that short video channels such as Douyin Kuaishou also experienced explosive growth. The performance is basically the same as traditional channels, and has become one of the main players in personal inspection channel performance growth; the customer conversion rate of platforms such as Meituan's word-of-mouth has also continued to increase, and performance is growing steadily; in terms of private domain platforms, with the full explosion of registration volume and daily active traffic, the platform's performance exploded.
According to reports, in 2024, the company will continue to strengthen the fission and accumulation of group packages and individual inspection services, further release momentum for collaborative revenue growth, continue to build a three-dimensional intelligent marketing system that “continuously imports traffic in the group inspection community, retains repurchases and converts traffic”, and create a two-wheel drive growth for group inspection and individual inspection guided by customer service solutions.
At the same time, Mei Nian Health will continue to launch the “American Special Screening” and “American Special Care” programs, focusing on adding a series of innovative special and specialty management products such as pan-vascular health, traditional Chinese medicine intelligent physical examination, bone health, AI blood sugar control, liver health management, etc., to enhance differentiated competitiveness, accelerate “intelligent personalized packages” + “early screening boxes” + “specialty management service packages”, and provide leading core specialist screening services to create a new engine for growth.
Industry insiders pointed out that healthcare is a track that can cross the cycle and has great potential for development. They are optimistic about the steady growth rate and undervalued consumer medicine circuit. Looking at the US Health Assessment, it is currently still at a relatively low point in history. Looking forward to the future to begin a new stage of growth through endogenous extension, and there is huge room for imagination.