CICC published a report initiating coverage on PA GOODDOCTOR (01833.HK) -0.220 (-2.174%) Short selling $5.73M; Ratio 4.823% with an Outperform rating and a TP of HKD14.2. The brokerage cited the companys positioning as the groups "Healthcare + Elderly Care" flagship, with strategic transformation driving rapid profit ramp-up, deep synergy within the group ecosystem, significant potential in commercial insurance collaboration and corporate health management businesses, as well as quality and efficiency enhancement through AI. It is optimistic about mid- to long-term profit release.

The report noted that as strategic upgrades began to yield results, the company achieved full-year profitability for the first time in 2024, and recorded positive full-year operating profit for the first time in 2025, maintaining strong growth momentum with continuous improvement in earnings quality and efficiency. Leveraging its self-developed and vertical large models together with massive data accumulation, the company has built differentiated advantages through an "AI + real doctors" model, significantly optimizing per-consultation costs and mid-office efficiency. In 2025, AI gross profit contribution accounted for nearly 5%. With ongoing improvement in operational capabilities, emerging economies of scale, and AI-driven cost reduction and efficiency gains, the broker expects the companys mid- to long-term profit margin to move toward the high double-digit target.

The broker forecast EPS of RMB0.2 and RMB0.29 for 2026 and 2027, respectively, implying a CAGR of 28.3% from 2025 to 2027. Considering the company is expected to continue benefiting from group synergies and sustained operational optimization under AI empowerment, CICC initiated coverage with an Outperform rating and a TP of HKD14.2. (ha/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-15 16:25.)