Citi lowers the target price for FANGZHOU JIANKE to 7.5 yuan, stating that its value is severely underestimated

Citi published a report stating that FANGZHOU JIANKE (06086.HK) is expected to achieve revenue of RMB 3.526 billion in the fiscal year 2025, representing a year-on-year growth of 30%; net profit is projected to be RMB 12 million, reversing from a net loss of RMB 855 million in 2024. Adjusted net profit is expected to grow by 19% year-on-year to RMB 20 million. By the end of 2025, cash and cash equivalents are expected to be RMB 233 million.

The report indicates that in 2026, FANGZHOU plans to focus on three major areas: 1) talent recruitment and team building; 2) accelerating investment in artificial intelligence to enhance user experience and operational efficiency; 3) expanding cooperation with medical insurance and improving product affordability. The bank believes that FANGZHOU is currently severely undervalued, with the current price corresponding to a forecasted price-to-sales ratio of only 0.4 times for 2026. The rating is "Buy/High Risk," with the target price lowered from HKD 8.5 to HKD 7.5