Investment Rating - The report maintains a "Hold" rating for Ping An Good Doctor (1833.HK) and adjusts the target price to HKD 11.4, indicating a potential upside of 14% from the current price of HKD 10.0 [2][3][10]. Core Insights - In 1H24, the company achieved profitability, exceeding market expectations, but revenue growth remains weak, primarily driven by improvements in expense ratios rather than revenue increases. The C-end business continues to drag on revenue growth due to strategic adjustments, with C-end revenue share dropping to 13% [2][3]. - The F-end (financial clients) showed stable growth with a 3% year-on-year increase in revenue to RMB 1.12 billion, while the B-end (enterprise clients) experienced strong growth, with a 59% year-on-year revenue increase to RMB 710 million, driven by ARPU growth [2][3]. - The report highlights that the company is close to returning to positive revenue growth, with a focus on improving profit margins and expense ratios, aided by digitalization and AI [2][3]. Summary by Sections Financial Performance - In 1H24, the company reported a revenue of RMB 2.09 billion, a year-on-year decrease of 6%, with a gross margin stable at 32.3%. The net profit attributable to shareholders turned positive at RMB 56.65 million, compared to a loss of RMB 53 million expected by the market [2][3][5]. - The report projects a gradual recovery in revenue, with expectations of a 10% growth in 2025 and 15.9% in 2026 [3][5]. Client Segments - The F-end revenue growth is attributed to the continued exploration of client resources within the Ping An Group, with a 7% increase in paid users to 14.8 million in 1H24. The penetration rate for F-end clients is estimated at 6%, indicating significant long-term growth potential [2][3]. - The B-end client segment saw a 59% increase in revenue, with a focus on high-quality enterprises and cross-selling of "Health Check+" products [2][3]. Future Outlook - The report emphasizes the need for clearer signals regarding the timing of revenue recovery and profit margin expansion. The target price adjustment reflects a 2.3x multiple on the projected 2025E P/S [2][3][10].
平安好医生：1H24超预期实现盈利，短期关注收入恢复增长时点及利润率改善空间