GF SEC: expects PA GOODDOCTOR (01833) to achieve stable revenue growth with continued increase in profit margin. Fair value is assessed at HK$19.65 per share.

GF Securities released a research report stating that with the continuous penetration of PA GOODDOCTOR (01833) in both the F-end and B-end customers, the revenue growth is strong. With the improvement of operational efficiency, profitability will further expand. The bank expects double-digit revenue growth in 2026-2027, with gross profit margin trending upwards and expense ratio decreasing. It is expected that the adjusted net profit margin will trend upwards in 2025-2026. Based on valuation of comparable companies, a 6x PS is given for 2026, resulting in a reasonable value of HK$19.65 per share, maintaining a "buy" rating. The bank expects a 13.6% year-on-year revenue growth in 2025, reaching 5.46 billion yuan, with the gross profit margin expected to remain stable. The adjusted net profit is expected to increase by 132% to 368 million yuan, and the adjusted net profit margin is expected to increase by 3.4 percentage points to 6.7%. The company focuses on strategic businesses, with rapid growth expected in B-end enterprise health, steady growth in F-end, deepening collaboration in F-end medical insurance, and jointly creating commercial insurance + health protection delegation + medical health service products with the group to accelerate the expansion of corporate customers. The report states that "Ping An Circle" is an offline health service network built for corporate customers by Ping An Health. By integrating chain pharmacies, dental clinics, traditional Chinese medicine therapy centers, and other medical health service resources, as well as cooperating with platforms such as Meituan and Dingdang Kuaiyao, a one-stop health service ecosystem is created for corporate customers. Employees of corporate clients can enjoy various services such as fast drug purchase and delivery, online consultations, and medical health management through their corporate health accounts. Meanwhile, a one-stop closed-loop service of "online consultation + prescription circulation + direct reimbursement/settlement of drugs" is provided for commercial insurance clients.