GF Securities: Maintains "Buy" rating for Ping An Good Doctor with a fair value of HKD 16.46 per share

Guangfa Securities released a research report stating that Ping An Good Doctor (01833) sees steady growth in its commercial insurance business. Its corporate management business is driven by increases in the number of customers and ARPU, resulting in rapid growth; operating efficiency continues to improve; and profitability will further expand. It is expected that from 2026 to 2028, revenue will grow year over year by +14% to 16%, and the gross margin will trend upward. At the same time, with revenue growth and expense control, the expense ratio is expected to decline, and it is expected that from 2026 to 2028, the adjusted net profit margin will trend upward. Based on the valuation of comparable companies, it gives 5x PS for 2026, arriving at a reasonable value of HK$16.46 per share. Maintain a “Buy” rating

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Guangfa Securities’ key views are as follows:

Company performance

Strong revenue growth in 2025, with profit margins continuing to improve. In 2025, the company’s revenue increased year over year by +13.7% to RMB 5.47 billion; gross margin increased by +0.7 percentage points year over year to 32.4%. Adjusted net profit increased year over year by +161% to RMB 414 million; adjusted net profit margin increased by +4.3 percentage points year over year to 7.6%, with continued improvement.

Actively expanding corporate clients; rapid growth in enterprise healthcare management revenue; commercial insurance continues to grow

In 2025, the company’s enterprise healthcare management revenue increased year over year by +40.6% to RMB 1.306 billion, with its share rising to 23.88%. The enterprise healthcare management business GMV is approximately RMB 3.63 billion; and the coordinated income from commercial insurance increased year over year by +11.00% to RMB 3.296 billion. The company continues to advance the medical insurance collaboration model and further deepens its cooperation. At the same time, it collaborates with group entities to build business insurance + health protection entrusted management + medical and health service products, accelerating the expansion of corporate clients. The number of paid enterprise customers served exceeds 6,700, up +83.1% year over year.

Continuously improving the four-to-service network; AI empowerment shows remarkable results

The company further expands its service network, improves service quality, and continuously strengthens the advantages in procurement bargaining power through platformization and large-scale services. “Ping An Circle” integrates medical and health service resources such as chain pharmacies, dental clinics, and traditional Chinese medicine therapy centers, and partners with platforms such as Meituan and Dingdang Express Pharmacy to build an offline one-stop health service closed loop for enterprise customers. Employees of corporate clients can access multiple services through corporate health accounts, including rapid drug delivery, online consultations, and medical and health management. Meanwhile, the AI empowerment effect is significant: its contribution to gross profit margin accounts for 4.5%, and in 25Q4 the cost per consultation decreased year over year by -45%.

Risk warnings:；F/B-end customer acquisition not meeting expectations; customer retention not meeting expectations; expenses increasing, etc.

(Editor: He Yu ）

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