Home Control’s Strategic Pivot to Smart Healthcare and Global Expansion: A Case for Valuation Re-Rating and Long-Term Growth

Home Control International Limited (1747.HK) has embarked on a transformative journey, pivoting from a traditional home automation player to a leader in smart healthcare. This strategic shift, underpinned by board-level expertise, technological innovation, and global expansion, positions the company to capitalize on the rapidly growing smart healthcare market. With a 56.9% year-on-year surge in net profit to USD 5 million in 1H2025 and a net margin improvement to 8.5% [1], Home Control’s financial performance and strategic repositioning suggest a compelling case for valuation re-rating and long-term growth.

Strategic Pivot: Board Expertise and Market Positioning

Home Control’s recent board appointments, including Mr. Chen Yi Chung and Ms. Ma Ying, bring deep expertise in digital healthcare, fintech, and international operations [1]. These leaders have prioritized smart healthcare as the company’s core growth engine, leveraging IoT and AIoT technologies to enable real-time personal health management and seamless integration of online and offline services [1]. The rebranding from “Omni Remotes” to “Omni Devices” reflects this pivot, with healthcare solutions now accounting for 20% of total revenue and growing [1].

The company’s focus aligns with global trends: the smart healthcare market is projected to grow at a CAGR of 25.59% through 2035, driven by wearable medical devices and connected health solutions [3]. Home Control’s exploration of AI and blockchain-powered platforms [1] further differentiates it from peers like Withings, Fitbit, and Philips, who are also integrating advanced technologies but face fragmented market competition [5].

Financial Performance and Operational Efficiency

Home Control’s 1H2025 results highlight its operational strength. The 56.9% YoY net profit increase and rising net margin from 6.2% to 8.5% [1] underscore improved efficiency, a critical factor in justifying higher valuation multiples. While traditional control solutions still dominate 80% of revenue, the healthcare segment’s growth trajectory—accelerated by board-led strategic decisions—signals a sustainable transition.

Comparative industry benchmarks suggest that smart healthcare firms with robust growth rates command elevated multiples. For instance, Apollo Hospitals traded at an EV/EBITDA of 34.2x in 2022–2023 [4], while general healthcare technology benchmarks hover around 15–25x EV/EBITDA [1]. Home Control’s integration of AI and blockchain [1], coupled with its global expansion plans, could position it to capture a premium multiple akin to high-growth tech-healthcare hybrids.

Valuation Re-Rating Potential

Despite the absence of direct 2025 peer multiples for companies like Withings or Philips, industry trends provide context. Philips’ recent EV/EBITDA of 12.02 [3] and AdaptHealth’s 5.3x [2] illustrate sector variability, but Home Control’s strategic differentiation—particularly its focus on AIoT and blockchain—aligns with high-growth tech sectors. The broader technology sector trades at 40x P/E and 38x EV/EBITDA [3], driven by AI and cloud innovation, suggesting that Home Control’s smart healthcare initiatives could justify a similar re-rating if execution meets expectations.

A visual comparison of valuation metrics would clarify this potential:

Global Expansion and Competitive Landscape

Home Control’s global strategy, led by board members with Asia-focused healthcare experience [1], targets markets where smart healthcare adoption is accelerating. The company’s partnerships and platform development [1] aim to address gaps in remote care and chronic disease management, areas where competitors like Fitbit and Philips are also investing [5]. However, Home Control’s unique blend of IoT, AI, and blockchain could reduce data silos and enhance predictive analytics, offering a competitive edge.

The smart healthcare market’s projected USD 106.27 billion valuation by 2035 [3] provides ample room for Home Control to scale. Its focus on elderly care and independent living [5]—a USD 31.6 billion connected health device market by 2030 [2]—further strengthens its long-term positioning.

Conclusion: A Compelling Investment Thesis

Home Control’s strategic pivot, driven by board expertise and technological innovation, is reshaping its business model and unlocking growth in a high-margin sector. With a proven ability to improve profitability and a clear path to leveraging AIoT and blockchain, the company is well-positioned for a valuation re-rating. While direct peer comparisons remain limited, industry benchmarks and the broader tech-healthcare convergence suggest that Home Control’s smart healthcare ambitions could justify a premium multiple. For investors, this represents a timely opportunity to capitalize on a company poised to redefine home healthcare in the AI-driven era.

Source:
[1] New Board, New Strategy: Home Control Taps Global Perspectives to Drive Smart Healthcare Expansion [https://www.thailand-business-news.com/pr-news/new-board-new-strategy-home-control-taps-global-perspectives-to-drive-smart-healthcare-expansion]
[2] AdaptHealth At A Crossroads: Automation, Integration, And ... [https://seekingalpha.com/article/4791748-adapthealth-crossroads-automation-integration-future-of-home-care]
[3] PHG Stock Quote | Price Chart [https://marketchameleon.com/Overview/PHG/Summary/]
[4] EV / EBITDA For Apollo Hospitals Enterprises Ltd. [https://finbox.com/NSEI:APOLLOHOSP/explorer/ev_to_ebitda_ltm/]
[5] Trends, Opportunities and Competitive Analysis [2024-2030] [https://www.researchandmarkets.com/reports/5691987/connected-health-device-market-trends?srsltid=AfmBOop_ENml6TE3uhMDG5N6fFexyjB_7ejAX1DSDR1qF8iUogo6V5Vg]