Core Viewpoint - Fangzhou Inc. has issued a positive profit forecast for 2025, highlighting stronger-than-expected revenue growth and its first year of full profitability, validating the commercial viability of its "AI + chronic care services" model [1][2]. Financial Performance - The company expects full-year revenue for 2025 to reach between RMB 3.5 billion and RMB 3.55 billion, representing year-on-year growth of approximately 30% [2]. - Fangzhou forecasts a net profit of RMB 7 million to RMB 10 million, marking a transition to comprehensive profitability after achieving adjusted profitability in 2024 [2]. Business Model and Growth Drivers - Revenue increase is attributed to the expansion of chronic disease management services and the upgrading of its platform through AI technologies, attracting more physicians and patients [3]. - The earnings improvement reflects a qualitative shift in business fundamentals, validating the long-term sustainability of its chronic disease management model [4]. Strategic Developments - In 2025, Fangzhou completed a strategic upgrade to its "AI + H2H (Hospital-to-Home)" model, applying AI across the entire service chain [5]. - The company began benchmarking against OpenEvidence and accelerated large-model deployment, completing key technical positioning ahead of many peers [5]. Market Recognition - Citi Research initiated coverage on Fangzhou with a "Buy" rating and a target price of HK$8.50 [6]. - Gelonghui Research Institute projects the company's revenue to reach HK$3.5 billion in 2025 and HK$4.8 billion in 2026, indicating a period of value re-rating driven by scale expansion and improving profitability [6]. Future Outlook - Fangzhou plans to refine its AI + H2H full-cycle smart healthcare ecosystem and deepen technology research and service innovation [7]. - The company aims to leverage its platform capabilities to support China's "Healthy China 2030" initiative while setting benchmarks for high-quality development in the digital healthcare industry [7].
Fangzhou Issues Positive Profit Forecast as AI-Driven Chronic Care Model Delivers First Full-Year Profit