On May 15, China International Capital Corporation (CICC) initiated coverage on Ping An Good Doctor (01833.HK) with an &#34;outperform&#34; rating and set a target price of HKD 14.20 based on DCF valuation, representing a 36.3% upside from the previous day's (May 14) closing price of HKD 10.42. CICC believes that Ping An Good Doctor, as the core flagship of Ping An Group's medical and elderly care ecosystem, has shown significant results in its strategic transformation and has reached a profitability inflection point, leveraging group synergy, high growth in corporate health management, and AI empowerment, with clear long-term growth and profitability potential.
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Last week (from May 11 to May 17), the Hong Kong stock market experienced significant adjustments. The Hang Seng Index fell by 1.63% over the week, while the Hang Seng Tech Index dropped by 3.17%. As a result, the stock price of Ping An Good Doctor also declined. However, CICC views the short-term fluctuations as mere market noise that does not reflect the true situation of Ping An Good Doctor.
In its research report, CICC specifically highlighted its key difference from the market: while the market remains cautious about the synergy between Ping An Group and Ping An Good Doctor, CICC is optimistic about the prospects of Ping An Good Doctor. Against the backdrop of the release of corporate health management and elderly care demand, Ping An Good Doctor, as an industry leader, is well-positioned to accelerate market share growth through its ecosystem and inherent advantages.
Consolidating Operational Foundations, Building Long-Term Competitive Core through Four Services
At the beginning of 2025, Ping An Good Doctor will become a consolidated subsidiary of Ping An Group, with its shareholding ratio increasing to 53.71%, further deepening business synergy with Ping An Group. As the flagship of Ping An Group's medical and elderly care ecosystem, Ping An Good Doctor has established a &#34;four services&#34; network covering &#34;to line, to hospital, to home, to enterprise,&#34; linking high-quality suppliers in the medical and health sectors, creating a managed medical model with online and offline closed loops, significantly enhancing service capability barriers and continuously solidifying operational foundations.
The four services network is the core competitive advantage of Ping An Good Doctor in the medical and elderly care sector:
In terms of &#34;to line,&#34; Ping An Good Doctor provides full-cycle health management services and differentiated solutions for Ping An's policyholders and corporate employees. Currently, the number of chronic disease service users has reached 16.9 million, with a customer satisfaction rate of 99%.
In terms of &#34;to hospital,&#34; Ping An Good Doctor has established a team of approximately 50,000 internal and external doctors, with over 3,500 contracted expert doctors, including 10 academicians/national physicians, and over 800 department heads/deputy heads/discipline leaders; it collaborates with over 5,100 hospitals, over 240,000 pharmacies, and over 4,400 health checkup providers.
In terms of &#34;to home,&#34; home elderly care services cover 100 cities nationwide, with a monthly active rate of 84% for home elderly care services, and a 100% alert response rate for &#34;smart guardianship.&#34;
In terms of &#34;to enterprise,&#34; Ping An Good Doctor has created corporate clinics for multiple enterprises that integrate health monitoring, consultation therapy, and popular science education services, providing employees with a &#34;face-to-face&#34; consultation experience through remote clinic large screens
With the support of the four-service network, PA GOODDOCTOR's profitability has rapidly improved, with operating profit turning positive for the first time in 2025 and significantly increasing, achieving a net profit attributable to the parent company of 380 million yuan, a year-on-year growth rate of 366.1%. In the first quarter of 2026, the quality of profit further improved, with net profit increasing by 138.4% year-on-year. China International Capital Corporation (CICC) believes that as the proportion of high-margin service businesses increases and low-margin self-operated e-commerce contracts, PA GOODDOCTOR is expected to move towards a net profit margin target of 15%-20% in the medium to long term.
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Leveraging Group Synergy Advantages, Corporate Health Management and Commercial Insurance Collaborative Business Become Growth Engines
Commercial insurance collaboration and corporate health management are the twin engines driving PA GOODDOCTOR's rapid growth. In 2025, PA GOODDOCTOR achieved total revenue of 5.468 billion yuan, of which commercial insurance collaborative business (F-end) revenue was 3.296 billion yuan, and corporate health management business (B-end) revenue was 1.306 billion yuan.
CICC believes that these two major businesses have broad future potential and are the core support for PA GOODDOCTOR's market value enhancement. Firstly, the commercial insurance market has enormous potential, with the current proportion of commercial insurance in the domestic medical payment structure being less than 3%, far lower than the 30% in the United States. The four insurance companies of Ping An Group currently have 250 million customers, and PA GOODDOCTOR's future penetration rate is expected to increase from the current 10% to over 50%. The smooth advancement of group synergy will bring in millions of new users.
The corporate health management business currently has a market size exceeding 500 billion yuan and is expected to grow to 4 trillion yuan in the future. PA GOODDOCTOR, with its full-process service of &#34;physical examination - assessment - intervention - diagnosis - rehabilitation,&#34; combined with internal business entrustment from Ping An Group, has strong certainty. According to the data from the first quarter of 2026, in the past 12 months, PA GOODDOCTOR has served over 7,500 paying corporate clients, a year-on-year increase of nearly 89%. According to CICC's forecast, with the support of the group, PA GOODDOCTOR's potential reachable clients in the future will reach 64,000.
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Accelerating the Promotion of &#34;AI + Medical&#34; Innovative Applications, Injecting New Momentum into Health Services
In October 2025, the General Office of the National Health Commission and the General Office of the National Development and Reform Commission jointly issued the &#34;Implementation Opinions on Promoting and Regulating the Application Development of 'Artificial Intelligence + Medical and Health',&#34; deploying artificial intelligence in health industries and other areas. Under the resonance of national strategy and market demand, the AI + medical industry has broad prospects.
PA GOODDOCTOR has long been deeply engaged in the AI + medical field, continuously strengthening its &#34;data + model + scenario&#34; closed-loop capability, promoting the application of AI in various medical health service scenarios. On the one hand, PA GOODDOCTOR continues to iterate its multi-modal technology base &#34;Ping An Medical Botong&#34; medical large model and five major medical vertical models targeting key medical scenarios, launching a medical AI product system, including digital avatars of famous doctors and AI family doctors
AI elderly care butler and other core products, AI doctor’s precise diagnosis covers over 11,300 diseases, and the accuracy of AI-assisted diagnosis and treatment reaches 95.1%. On the other hand, Ping An Good Doctor has innovatively launched a multidisciplinary consultation assistance platform for complex diseases, which has been applied in diseases such as breast cancer, with the accuracy of complex disease multidisciplinary consultation treatment plans stabilizing at around 95%. In the future, it will expand to more diseases.
According to Ping An Good Doctor's 2025 annual report, its AI doctor has nearly 12 million annual users, achieving 100% coverage of personal clients of Ping An Group with &#34;AI + real doctors&#34;; the contribution of AI to gross profit accounts for about 4.5%. At the same time, AI continues to empower services to reduce costs and improve efficiency. For example, in the fourth quarter of 2025, the cost of a single consultation assisted by AI decreased by about 45% year-on-year.
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CICC predicts that the operating revenue of Ping An Good Doctor is expected to reach 5.75 billion yuan and 6.622 billion yuan in 2026 and 2027, respectively, with net profit attributable to the parent company of 438 million yuan and 625 million yuan, achieving steady growth. This reflects a serious consideration of Ping An Good Doctor's strategic position within the Ping An Group's medical and elderly care ecosystem, as well as a high recognition of Ping An Good Doctor's achievements in corporate health management and AI applications.
Looking to the future, in the short term, relying on the collaborative synergy of Ping An Group's commercial insurance and deepening the corporate health management track can quickly release performance growth momentum; in the long term, Ping An Good Doctor continues to layout AI + medical care, creating a benchmark for managed healthcare in China, with promising development potential

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CICC initiates coverage on PA GOODDOCTOR with an "outperform" rating and a target price of HKD 14.20, representing a 36.3% upside from the previous day's closing price. CICC believes that PA GOODDOCTOR, as the core of Ping An Group's healthcare and elderly care ecosystem, has shown significant results in its strategic transformation and has reached a profitability inflection point, with clear growth and profit potential in the future. Despite adjustments in the Hong Kong stock market, CICC believes that short-term fluctuations do not reflect the true situation of PA GOODDOCTOR, and its service network is a core competitive advantage

同壁财经

PA GOODDOCTOR

PING AN

Ping An

CICC

Hang Seng Index

Hang Seng TECH Index

PING AN-R

Ping An Insurance

The market value of the medical and elderly care sector exceeds one trillion, and China International Capital Corporation is optimistic about the HMO model of PA GOODDOCTOR despite the downturn