Key Takeaways
CICC initiated coverage on Ping An Good Doctor with an “Outperform” rating, setting a HK$14.20 price target that suggests a 36.3% upside.
The bank’s positive outlook stems from the company’s position as a "Healthcare + Elderly Care" flagship, with AI and group synergies expected to drive profit growth, CICC said in its initiation report.
The report forecasts earnings per share of RMB0.20 in 2026 and RMB0.29 in 2027, implying a compound annual growth rate of 28.3% from 2025 to 2027.
The initiation comes after the company reached full-year profitability for the first time in 2024, signaling a successful strategic shift that CICC believes will continue to yield results.
CICC highlighted the company's self-developed AI models which, when combined with real doctors, significantly optimize consultation costs and operational efficiency. In 2025, AI-driven gross profit accounted for nearly 5% of the total. The bank expects this, along with synergies from the broader Ping An group ecosystem, to push the company’s profit margin toward a high double-digit target in the medium to long term. The corporate health management and elderly care sectors are seen as key growth areas where Ping An Good Doctor can leverage its advantages to accelerate market share gains.
The bullish report reinforces the narrative of a successful turnaround and a clear path to sustained growth. Investors will watch for upcoming earnings to see if the AI-driven efficiency gains and margin improvements continue on the trajectory CICC has forecast.
This article is for informational purposes only and does not constitute investment advice.
