UBS lowers PA GOODDOCTOR's target price to 14.5 yuan, rating "Neutral"

UBS published a research report stating that PA GOODDOCTOR (01833.HK) had a revenue increase of 13.7% year-on-year to RMB 5.47 billion last year, with net profit and non-IFRS net profit reaching RMB 378 million and RMB 414 million respectively, indicating net profit margins and adjusted net profit margins of 6.9% and 7.6%, an increase of 5.2 and 4.3 percentage points year-on-year.

The bank indicated that the group's revenue met expectations, and net profit exceeded market expectations; revenue growth was driven by a stable increase in the number of paying users and increased user spending, while profit margin growth was driven by business portfolio optimization, improved operational efficiency, and one-time gains related to litigation, which outperformed expectations.

The bank raised its earnings per share forecast for the group for each year from this year to 2028 to RMB 0.22, RMB 0.31, and RMB 0.39, and lowered its target price from HKD 16.5 to HKD 14.5, maintaining a "Neutral" rating