Ping An Healthcare & Tech has strong financial position but cautious on M&As

The online healthcare provider has a cash balance of RMB4.6b with no bank borrowings.

An online broker said Ping An Healthcare & Technology has sufficient cash to back its business operation but remains cautious about M&As.

It currently has a cash balance of RMB 4.6b and no bank borrowings as of the end of June 2023, UOBKayHian reported. 

“The company indicated it has cash and equivalent resources of RMB 12.5b on hand. We believe its cash balance is sufficient to support its business operation. Meanwhile, the company stays focused on its organic growth, and remains cautious on M&As,” said UOBKayHian.

Ping An also tends to look at high-quality targets with high synergy with its core business. 

It previously acquired Ping An Smart Healthcare at a total consideration of US$98m in Oct 2022, which seeks to improve its medical technology capabilities to empower medical services such as family doctors, chronic disease management, and specialised auxiliary diagnosis. 

It also does not have any plan for share buybacks.