GF SEC: Maintains a "buy" rating on PA GOODDOCTOR (01833) with a fair value of HK$16.46 per share.

GF SEC released a research report stating that PA GOODDOCTOR's commercial insurance business is experiencing stable growth, while its corporate management business is rapidly growing driven by an increase in customer numbers and ARPU. Operating efficiency continues to improve, leading to further expansion of profits. It is expected that the revenue in 2026-2028 will increase by 14-16% year-on-year, and the gross profit margin will continue to improve. At the same time, with revenue growth and cost control, the expense ratio is expected to decrease, and the adjusted net profit margin is expected to increase in 2026-2028. Based on the valuation of comparable companies, a 5 times PS ratio is given for 2026, resulting in a fair value of HK$16.46 per share. The "buy" rating is maintained. GF SEC's main points are as follows: Company Performance Fast revenue growth in 2025, with continued improvement in profit margins. The company's revenue in 2025 increased by 13.7% year-on-year to 5.47 billion yuan, with a gross profit margin of 32.4% (+0.7 percentage points year-on-year) and an adjusted net profit of 414 million yuan (+161% year-on-year), with an adjusted net profit margin of 7.6% (+4.3 percentage points year-on-year), showing continuous improvement. Actively expanding corporate clients, with rapid growth in corporate health management revenue and continuous growth in commercial insurance The company's corporate health management revenue in 2025 increased by 40.6% year-on-year to 1.306 billion yuan, accounting for 23.88% of total revenue, with a total GMV of corporate health management business of approximately 3.63 billion yuan; synergistic income from commercial insurance increased by 11.00% year-on-year to 3.296 billion yuan. The company continues to deepen the medical insurance synergy model, while collaborating with the group to create commercial insurance + health protection delegation + medical health service products, accelerating the expansion of corporate clients. The number of paid corporate clients exceeded 6,700, an increase of 83.1% year-on-year. Continuously improving the four service network, with significant effects of AI empowerment The company further expanded its service network, improved service quality, and continuously strengthened its platform-based, scalable service procurement advantages. "Ping An Circle" integrates resources of pharmacy, dental, traditional Chinese medicine therapy, etc., and collaborates with platforms such as Meituan and Dingdang Kuaiyao to create an offline one-stop health service ecosystem for corporate clients. Employees of corporate clients can enjoy various services such as fast drug delivery, online consultation, and medical health management through their corporate health accounts. At the same time, the significant effects of AI empowerment are evident, with a contribution margin of 4.5% and a 45% year-on-year reduction in the cost of a single consultation in Q4 of 2025. Risk warning: F/B end customer acquisition is lower than expected; customer retention is lower than expected; increase in expenses, etc.