Yolanda.Hu@morganstanley.comSean.Wu@morganstanley.comLaurence.Tam@morganstanley.comAlexis.Yan@morganstanley.comEthan.Ding@morganstanley.comAttractiveMORGANSTANLEYASIALIMITED+YolandaHuEQUITYANALYST+8522848-5649SeanWuEQUITYANALYST+8523963-0755LaurenceTamEQUITYANALYST+8522239-1753AlexisYanRESEARCHASSOCIATE+8522239-7953EthanDingRESEARCHASSOCIATE+8523963-0546ChinaHealthcareAsiaPacificIndustryViewChinaHealthcareChinaHealthcare||AsiaPacificAsiaPacificInitiatingonTwoInternetHealthcarePlayers:EvolvingBizModelsAmidPolicyTailwindsAliHealthandPingAnHealthcareareleadingplayersintheonlinerealmsofdrugsalesandpatientconsultationsinChina.Bothcompaniesaimtobuildclosed-loopecosystemswithmultipleofferings,andarebackedbypowerfulparents.InitiatebothatOW.WeareveryconstructiveonChina'sinternethealthcareindustry:China'sinternethealthcaremarketgenerated~Rmb20bnin2018sales.Chinapresentsdistinctiveopportunities,owingtothecountry'slargeinternet/smartphone-adeptpopulationbaseandadvancingmoderntechnologies.Internethealthcarenotonlyaddressessomeofthecurrentsystem'spainpoints,butitcanalsoexploitthepowerofbigdatatodrivemoreeffectivebusinessdecisionsandpropelnewbusinessmodels.Thegradualrolloutofreimbursementcoverageforonlineconsultationsandpotentialrelaxationofonlineprescriptionsalesinthenext6-12monthsbroadentheplayingfieldforinternethealthcarecompanies,andshoulddriverobustgrowthoverthenextfewyears.TheCovid-19outbreaknotonlyspursnear-termdemandforonlinehealthcareservices,butshouldalsopromptfavorableregulatorydevelopmentandbroaderpublicawarenessofinternethealthcareservicesinthemediumtolongterm.Industrylandscape/keyplayers:In"AsiaPrimer:TheEraofInternetHealthcare",wemapouttheindustry'svarioussubsegments,discussopportunitiesandrisks,examinevaluation,andintroducethekeyplayers.Theindustryincludesbothindividual-facinginternethealthcareservices(e.g.,onlineconsultations,druge-commerce,consumerhealthcare),andbusiness-orientedtechnologies(e.g.,AI-baseddrugdiscoveryandearlydiseasediagnosis,clinicaldecisionsu...
