Puyin International released a research report stating that PA GOODDOCTOR (01833) demonstrated steady growth in revenue and net profit in 3Q25, with full-year revenue expected to increase by approximately 15% and net profit margin to reach around 5%. In a previous report, the firm highlighted the company's long-term growth potential but noted that short-term valuation requires stronger earnings growth for further digestion. Following the recent stock price correction, Puyin believes the valuation has entered a relatively reasonable range, maintaining a "Hold" rating. The firm forecasts net profits of RMB 250/410/570 million for 2025/26/27 (2024-27E CAGR: 91%) and retains a target price of HK$14.0 (implying 70x 2026E P/E).
Key takeaways from Puyin International: - **3Q25 Revenue & Profit Growth**: 9M25 revenue rose 14% YoY to RMB 3.72 billion, while net profit surged 73% YoY to RMB 180 million (net margin up 1.7 ppts to 4.9%). Adjusted net profit grew 46% YoY to RMB 220 million (adjusted net margin up 1.3 ppts to 5.8%). Sequentially, 3Q25 revenue increased 3% YoY to RMB 1.22 billion, with Q3 typically being a low season for medical check-ups. Q4 revenue is expected to improve QoQ. Net profit attributable to shareholders rose 7% YoY to RMB 48.93 million (net margin up 0.1 ppts to 4.0%), with adjusted net profit at RMB 51.39 million (adjusted net margin: 4.2%). Full-year revenue is projected to grow ~15%, with net margin expanding 2.8 ppts YoY to ~5%.
- **Steady Growth in F+B Segments & Elderly Care Users**: 9M25 F+B corporate health business revenue grew 21.5% YoY. The F segment deepened medical-insurance integration, collaborating with Ping An Group to offer "commercial insurance + health protection mandates + healthcare services" products, serving over 4,500 corporate clients. B segment paying users increased 30.6% YoY. In home-based elderly care, the company emphasized medical services, health management, emergency assistance, and remote care, exploring an "insurance + home care" model. By end-3Q25, home care users grew 41% from end-2024.
- **New Leadership to Enhance Synergies & Business Expansion**: In early October, the company appointed Mr. Guo Xiaotao as Chairman. A former BCG partner and managing director, Mr. Guo currently serves as Ping An Group’s Executive Director, Co-CEO, and Deputy General Manager. Mr. He Mingke was named CEO, with prior experience at BCG, SAIF Partners, and Baidu’s healthcare division. Both bring extensive consulting expertise, and Mr. Guo’s dual role is expected to accelerate synergies with Ping An Group and new business development.
**Investment Risks**: Policy changes in internet healthcare/elderly care; slower-than-expected earnings growth.