Ping An Healthcare and Technology Company Limited: Maintains a "hold" rating on PA Good Doctor (01833) with a target price of HK$14.0.

Guo Yin International released a research report stating that PA GOODDOCTOR (01833) had stable growth in revenue and net profit in 3Q25, and it is expected to achieve a revenue growth rate of about 15% and a net profit margin of about 5% for the full year. In a previous report (link), the bank had pointed out that it sees long-term development potential in the company, but in the short term, higher performance growth is needed to digest the valuation. The bank believes that after the recent stock price correction, the company's stock price has entered a relatively reasonable range, maintaining a "hold" rating, and expects the company's net profit for 2025/26/27 to be RMB 250 million/410 million/570 million (2024-27E CAGR 91%), maintaining a target price of HKD 14.0 (corresponding to a 2026E P/E of 70x). Guo Yin International's main points are as follows: Stable growth in revenue and net profit in 3Q25 9M25 revenue increased by 14% year-on-year to RMB 3.72 billion; net profit increased by 73% year-on-year to RMB 180 million (net profit margin increased by 1.7 percentage points year-on-year to 4.9%); adjusted net profit increased by 46% year-on-year to RMB 220 million (adjusted net profit margin increased by 1.3 percentage points year-on-year to 5.8%). Looking at individual quarters, 3Q25 revenue increased by 3% year-on-year to RMB 1.22 billion, with 3Q generally being the off-season for the company's physical examination business, and it is expected that the revenue will increase sequentially in 4Q; 3Q25 net profit attributable to shareholders increased by 7% year-on-year to RMB 48.93 million (net profit margin increased by 0.1 percentage points year-on-year to 4.0%); adjusted net profit was RMB 51.39 million (adjusted net profit margin 4.2%), the bank expects full-year revenue growth of about 15% and net profit margin to increase by 2.8 percentage points year-on-year to about 5%. Steady growth in F+B end business, rapid growth in elderly care service users The company's 9M25 F-end and B-end enterprise health business revenue increased by 21.5% year-on-year. Among them, the F-end continued to promote medical insurance synergy, the company and Ping An Group jointly created "commercial insurance + health protection delegation + medical health services" products, accelerating the expansion of corporate customers, and the company has served more than 4,500 corporate customers by 9M25; B-end paid users increased by 30.6% compared to the same period last year. In the area of home care for the elderly, the company focuses on promoting medical services, health management, emergency rescue, remote care, and continues to explore the "insurance + home care" service model. As of the end of 3Q25, the number of equity users for home care services increased by 41% compared to the end of 2024. The new management team is expected to accelerate the company's synergy with the group and expand into new business areas The company announced the appointment of Mr. Guo Xiaotao as Chairman of the Board in early October this year. Before joining Ping An Group, he was a partner and managing director at Boston Consulting, and is currently an executive director, co-CEO, and deputy general manager at Ping An Group. In addition, the company announced the appointment of Mr. He Mingke as CEO, who has held positions at Boston Consulting, SoftBank Safe Fu, and Baidu Medical Health Business Group. Both new members of the management team have rich experience in the consulting industry, and Mr. Guo has been a co-CEO at Ping An Group, so it is expected that the new management team's appointment will further promote the synergy between the company and the group as well as the expansion of new business models. Investment risk: Changes in policies related to Internet healthcare and elderly care; performance growth lower than expected.