Southwest Securities released a research report stating that the AI healthcare market has significant potential. XUNFEIHEALTH (02506) possesses its self-developed foundational large model, with its performance ceiling continuously rising. As the AI healthcare company with the broadest industry coverage, it is the primary candidate to benefit from policy tailwinds and national-level projects, warranting ongoing attention. The main points from Southwest Securities are as follows.
On December 29, 2025, the company announced a notice regarding shareholders' voluntary extension of the lock-up period. Major shareholders of XUNFEIHEALTH, including its parent company iFlytek Co., Ltd., Kexun Venture Capital, and other core investors, as well as senior executive partnership platforms and key individual shareholders, proactively extended the share lock-up period, originally set to expire on December 29, 2025, for an additional year until December 29, 2026. They committed not to reduce their holdings of the company's H-shares or non-listed shares during this period. As of the announcement date, these shareholders collectively hold 52,758,395 H-shares, representing 68.25% of the total H-share capital and 72.86% of the total share capital.
The voluntary extension of the lock-up period by major shareholders demonstrates long-term confidence. This proactive lock-up extension reflects the high level of recognition from key stakeholders regarding the company's future development and indirectly confirms the viability of its AI healthcare strategy and medium-to-long-term growth prospects. Secondly, the extremely high combined shareholding percentage of core shareholders, coupled with the extended lock-up, helps stabilize market growth expectations to a certain extent, curbs short-term stock supply pressure, and has a positive supporting effect on the share price. The deep binding of equity through employee stock ownership platforms for executives and the core technical team fully mobilizes team initiative, which is conducive to consolidating the momentum for business innovation.
The company is deeply integrated with its self-developed "Spark" large model, possessing a full-stack, independently controllable technological barrier. In March 2025, the company officially launched the "iFlytek Spark Healthcare Large Model X1," based on deep reasoning technology. This model is currently the only healthcare deep reasoning large model trained entirely using domestically produced computing power. In real-world scenario tests, its合理性 rate for general practice辅助诊断 reached 94.0%. In July 2025, the iFlytek Spark Healthcare Large Model underwent a capability upgrade, with several performance indicators further improved. Specifically, the合理性 rate for general practice辅助诊断 increased to 95.0%, the合理性 rate for physical examination report interpretation rose to 86.3%, the answer rate for health consultations improved to 91.5%, and the合理性 rate for major cardiovascular internal medicine diagnoses in hospital settings climbed to 91.2%. Tests indicate that its performance continues to significantly lead international mainstream models like OpenAI's o3 and DeepSeek's R1 on key healthcare scenario tasks.
Unlike most AI application companies that rely on third-party or open-source models, XUNFEIHEALTH deeply relies on its parent company iFlytek's self-developed "Spark" large model, which is trained entirely on domestic computing power. This brings two core advantages: firstly, in government and enterprise markets, especially with government agencies and large public hospitals, independent controllability and data security are key considerations, constituting a strong barrier to entry; secondly, the data and application experience from the healthcare business can feedback into the iteration of the underlying large model, forming a closed loop and a virtuous cycle for technology R&D. In the long run, product performance and iteration efficiency are expected to maintain a leading edge.
AI + healthcare is a clear direction for policy-driven incremental growth, and the company, as an industry leader, stands to benefit fully. Against the backdrop of tightening local government finances and medical insurance cost control, traditional healthcare IT investment faces pressure. However, using AI to enhance primary care diagnosis and treatment levels and optimize healthcare resource allocation is a clear incremental investment direction emphasized by the National Health Commission and other departments. From the "14th Five-Year Plan for National Health Informatization" to various AI application guidelines, policy support continues to strengthen. XUNFEIHEALTH, as the AI healthcare company with the broadest industry coverage, is the primary candidate to capture these policy benefits and undertake national-level projects.
Earnings Forecast: Revenue for 2025-2027 is projected to be RMB 930 million, RMB 1.21 billion, and RMB 1.58 billion, respectively, corresponding to Price-to-Sales ratios of 8.5x, 6.5x, and 5x. Risk Warning: Risks include market expansion falling short of expectations, delays in contract execution, and intensifying market competition.
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