(Yicai Global) May 8 -- Ping An Insurance, the controlling shareholder of Ping An Healthcare and Technology, is betting on continued strong revenue growth at the online healthcare provider by increasing its stake in the company.

Ping An Insurance bought almost 2 percent of shares in the firm, also known as Ping An Good Doctor, lifting its holding to a bit more than 41 percent, the Shanghai-based target company said in a statement posted on the Hong Kong Stock Exchange's website yesterday.

The move illustrates Ping An Insurance's confidence in Good Doctor's long-term value, Shanghai Securities News reported, citing market analysts.

Revenue at Ping An Good Doctor surged 79 percent to CNY3.3 billion (USD499.6 million) last year, beating an expectation of CNY3 billion. Operating income from its core family doctor business was particularly strong, jumping 70 percent to CNY411 million (USD60.7 million). Its annual net loss narrowed 9 percent to CNY913 million, which was a fifth better than an average estimate by analysts.

Investment banks Citi Securities, J.P. Morgan Chase, HSBC Securities and UBS Securities have given the stock a 'buy' rating, setting the target price as high as HKD60 a share. Good Doctor [HKG:1833] closed 0.8 percent higher today at HKD39.25 (USD5), while the benchmark Hang Seng Index lost 1.3 percent.

Launched in 2015, the platform offers online consultations, appointment booking and e-commerce services. It went public in Hong Kong in May 2018.

The firm's monthly paying user numbers rose 86 percent to 2.4 million at the end of 2018, while active users gained 85 percent to 54.7 million.

Editor: Emmi Laine