The Zhitong Finance App learned that CICC released a research report stating that maintaining Ping An Good Doctor (01833)'s “outperforming the industry” rating and target price of HK$8.30 is based on DCF's valuation, with 49.3% upside compared to the current stock price. The company achieved revenue of 3.508 billion yuan and net profit of 248 million yuan, an increase of 35.0% year on year; adjusted net profit of 255 million yuan, up 19.5% year on year, in the first three quarters of 2026. The results are in line with the forecast. The bank maintained the company's 2026 and 2027 net profit forecasts of 239 million yuan and 385 million yuan respectively.
CICC's main views are as follows:
Continue to promote revenue structure optimization and steady expansion of corporate health management business
The company continues to focus on the core business of healthcare and pension, and actively optimizes the revenue structure. Looking at revenue breakdown, in the first three quarters of 2026, the bank estimates that the commercial insurance collaboration business declined by single digits year on year, and the corporate health management business maintained a rapid growth rate of more than 40% year over year. By the end of the third quarter of 2026, there were more than 8,100 paying enterprise customers in the past 12 months, an increase of nearly 60% over the previous year; other businesses continued the trend of active elimination in the first half of 2026, and the share of core business revenue further increased.
Looking ahead to the fourth quarter, the bank expects that the company will further actively pressure traditional group inspection and other businesses that reduce gross profit, which may have a certain impact on revenue growth in the short term, but will help further optimize the business structure.
Continue to deepen the “four to” service system, and enable AI to improve the quality and efficiency of medical services
Relying on the ecological resources of Ping An Group, the company continues to improve the online and offline integrated medical and health service network. By the end of the third quarter of 2026, Ping An Healthcare's QR code payment had covered 169,000 pharmacies across the country, and more than 320,000 customers were eligible for home care services.
At the same time, the company continues to promote the implementation of AI medical scenarios. The total number of AI doctors using it is nearly 13 million. The multidisciplinary consultation platform for complex diseases covers four major types of diseases, and the accuracy rate of diagnosis and treatment plans is about 90%.
Business restructuring continues, and it is expected that profit quality improvements will show results
In the first three quarters of 2026, the company's adjusted net interest rate was 7.4%, an increase of about 2 percentage points over the previous year. It mainly benefited from the contraction of low-margin business, optimization of revenue structure, and the increase in gross margin of core business driven by AI. The single-quarter profit margin for the third quarter declined somewhat compared to the first half of the year. The bank estimates that while the company actively shrank revenue, the absolute amount on the cost side remained basically stable, driving up the expense ratio in stages.
The company expects that the pressure drop in low-margin businesses such as traditional group inspections will be reflected more in the fourth quarter and subsequent signing cycles. The bank expects that after the business restructuring is completed, the financial statements will further reflect the trend of improving the quality and profitability of the core business.
Profit forecasting and valuation
CICC kept Ping An Good Doctor's net profit forecasts unchanged at RMB239 million and RMB385 million respectively in 2026 and 2027. The bank maintains a “outperforming industry” rating and a target price of HK$8.30. Based on DCF's valuation, there is 49.3% upside compared to the current stock price.
Risk Alerts
Collaboration with Ping An Group fell short of expectations; industry competition intensified; policy changes.