The Zhitong Finance App learned that CICC released a research report. Ping An Good Doctor (01833)'s core business is steady, and innovative services continue to broaden the collaborative value boundaries of medical insurance. At the same time, the company's AI capabilities extend to diverse scenarios and groups of people, and the differentiated implementation system has been recognized by international authorities. Maintaining the stock's “outperforming the industry” rating, the target price is HK$8.30, with 49.3% upside compared to the current share price (HK$5.56).
According to the report, the company's 1-3Q26 performance was in line with expectations, achieving revenue of 3.508 billion yuan, 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 terms of development trends, the report indicates that the company continues to promote revenue structure optimization and the corporate health management business is steadily expanding. It also continues to focus on core healthcare and pension businesses, and actively optimizes the revenue structure. In terms of commercial insurance collaboration business, the company focuses on refining the membership service system that is iterative and deeply integrated with insurance products, and helps acquire customers through rich health service benefits. During the period, the company relied on solid medical service capabilities and continued to promote the in-depth implementation of the medical insurance collaboration model to specialized patients.
In terms of corporate health management business, during the period, the company accelerated the expansion of corporate customers, and strengthened the transformation of online/offline operations by enriching products and improving service quality as the core gripper. By the end of the reporting period, the company had served more than 8,100 paying enterprise customers in the past 12 months, an increase of nearly 60% over the previous year; at the same time, the GMV of the corporate health management business continued to grow, and the commercial value boundary continued to expand.
The report also points out that the company continues to deepen the “four to” service system, and AI is empowering medical services to improve quality and efficiency. By the end of 3Q26, 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%.
In terms of profit quality, the 1-3Q26 company adjusted its net interest rate of 7.4%, an increase of 2ppt over the previous year, mainly due to the contraction of low-gross business, optimization of the revenue structure, and the increase in the gross margin of the core business driven by AI. CICC expects that the pressure drop in low-gross businesses such as traditional group inspection will be reflected more in the 4Q and subsequent signing cycles. It is expected that after the business restructuring is completed, the report will accelerate to reflect the trend of improving core business quality and profitability.