GF Securities issued a research report indicating that PA GOODDOCTOR (01833) demonstrates stable growth in its commercial insurance business. The corporate health management segment is experiencing rapid expansion driven by increasing client numbers and higher average revenue per user. Operational efficiency continues to improve, with profitability expected to further expand. The company is projected to achieve 14-16% year-over-year revenue growth from 2026 to 2028, while gross margin trends upward. With revenue growth and effective cost control, the expense ratio is expected to decline, leading to an improved adjusted net profit margin during the 2026-2028 period. Based on comparable company valuations, a 2026 price-to-sales ratio of 5x is applied, resulting in a fair value estimate of HK$16.46 per share. A "Buy" rating is maintained.

Key points from GF Securities include: - The company reported rapid revenue growth in 2025, with continued margin improvement. Full-year 2025 revenue increased by 13.7% year-over-year to RMB 5.47 billion, while gross margin rose by 0.7 percentage points to 32.4%. Adjusted net profit surged 161% to RMB 414 million, with the adjusted net profit margin increasing by 4.3 percentage points to 7.6%. - Active expansion of corporate clients has driven strong growth in enterprise health management revenue, alongside steady growth in commercial insurance. Corporate health management revenue grew 40.6% year-over-year to RMB 1.306 billion in 2025, accounting for 23.88% of total revenue, with gross merchandise value of approximately RMB 3.63 billion. Commercial insurance-related revenue increased by 11.00% to RMB 3.296 billion. - The company continues to deepen its integrated medical and insurance model, collaborating with the broader group to develop products combining commercial insurance, health protection mandates, and medical services. Corporate client expansion has accelerated, with over 6,700 paying enterprise clients served, representing an 83.1% year-over-year increase. - Ongoing enhancement of the service network and significant AI-driven efficiency gains have been achieved. The company has expanded its service coverage and improved service quality while strengthening its platform advantages and bulk purchasing power. Through "Ping An Circle," the firm integrates resources from chain pharmacies, dental clinics, and traditional Chinese therapy centers, partnering with platforms such as Meituan and Dingdang Fast Medicine to offer corporate clients a seamless offline health service experience. Employees of corporate clients can access services including fast medicine delivery, online consultations, and health management via corporate health accounts. AI adoption has contributed significantly, accounting for 4.5% of gross profit, with per-consultation costs decreasing by 45% year-over-year in the fourth quarter of 2025. - Risks include slower-than-expected customer acquisition in corporate and individual segments, lower client retention rates, and rising expenses.