BlueCity Holdings Ltd. (Nasdaq: BLCT) announced Monday that it has received an internet hospital license for He Health, its health service platform for males in China.
The operator of Asia’s biggest LGBTQ+ platform said the license will allow the company to expand its health services in areas including premature ejaculation, erectile dysfunction, HIV prevention and testing, and drug availability. To help individuals in those areas, BlueCity will integrate internet hospitals, offline chain pharmacies, and drug batches.
The move will also allow BlueCity to bring “renowned doctors” on its He Health platform to interact with patients.
In part, BlueCity is doing in China what Hims & Hers Health Inc. (NYSE: HIMS) has done for the U.S. market – operating a telehealth platform to connect patients with doctors and supply certain drugs, supplements, and beauty products. Except, BlueCity has the benefit of directing millions of users of its LGBTQ+ dating app Blued to the platform.
Since BlueCity launched He Health in March 2019, the platform has expanded from covering sexually transmitted diseases to “men's wellbeing” each day. Since inception, BlueCity said it has provided men's health and HIV prevention solutions to “tens of millions of users in China."
In the fourth quarter, revenue from He Health increased more than eight times year-over-year, reaching 11.4 million yuan ($1.75 million).
"We're delighted to open up what will be China's first Internet hospital focused on men's health, tapping into a budding sector that we view as a key driver in the brand's next phase of growth, which is backed up by the eightfold increase in profits BlueCity saw for He Health year-on-year during the fourth quarter of 2020," Baoli Ma, the founder, chairman, and chief executive officer of BlueCity said in the statement on Monday.
By 2025, men’s health and healthcare market size in China is expected to hit 99.6 billion yuan ($15.2 billion), as estimated by market research firm Frost and Sullivan.
Given impressive growth on its He Health platform in 2020, as well as BlueCity's leading position in the LGBTQ+ social app space in China, India, Vietnam, Thailand, and Korea, I recommended a buy on BlueCity’s shares earlier this month.
BLCT stock has been on a pullback in the past couple of months, as growth stocks have slumped on spiking fears of interest rates and the uncertainty over continued Chinese listings.
Intraday Tuesday, BlueCity's stock traded at $8.23 per American depositary share.
In December, Oppenheimer initiated coverage on BlueCity with an "outperform" and a price target of $20 per share.
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