Core Viewpoint - The internet healthcare company Fangzhou Jianke has entered a performance realization phase, achieving significant revenue growth and profitability, indicating a shift towards value-driven development in the chronic disease management sector [1][2]. Financial Performance - In the first half of 2025, Fangzhou Jianke reported revenue of 1.494 billion yuan, with a 28.2% year-on-year increase in online retail pharmacy services revenue [1]. - The company turned a profit with a net profit of 12.5 million yuan, and adjusted net profit reached a record high of 17.6 million yuan, up 16.8% year-on-year [1]. User Engagement and Loyalty - Fangzhou Jianke has cultivated a loyal user base, with a high repurchase rate of 85.4% among paying users, and a registered user count of 52.8 million, with 11.9 million monthly active users [4][5]. - The company’s "familiar doctor-patient" model has led to a strong user loyalty and willingness to pay, which is above industry averages [5]. Market Position and Valuation - Despite its strong performance, Fangzhou Jianke is significantly undervalued compared to competitors like JD Health and Alibaba Health, which have market capitalizations of 200 billion HKD and over 80 billion HKD, respectively, while Fangzhou Jianke's market cap is around 5 billion HKD [1][7]. - Analysts suggest that the potential market value of Fangzhou Jianke could range from 35.7 billion to 47.6 billion HKD based on user engagement metrics, indicating a substantial undervaluation [7]. Competitive Landscape - The company’s business model is likened to Xiaomi's "Mi Fan" model, emphasizing the importance of loyal users and high-frequency interactions as key drivers of growth [5][6]. - Fangzhou Jianke's focus on chronic disease management and its innovative AI-driven healthcare platform positions it well within the competitive landscape of internet healthcare [1][8]. Intangible Assets and Future Potential - The company possesses significant intangible assets, particularly in its medical service capabilities and human capital, which are not yet accurately quantified in market valuations [8]. - The lack of consensus on how to measure the value of healthcare service assets contributes to the current undervaluation of Fangzhou Jianke [7][8].