Investment Rating - The report maintains a "Hold" rating for Ping An Good Doctor (1833.HK) and lowers the target price to HKD 15.0 [1][3]. Core Views - The business restructuring initiated in November 2021 is nearly complete, leading to improved gross margins and reduced expenses, which have contributed to a better-than-expected net loss for 2023. Revenue is anticipated to return to growth in 2024 [1][2]. - In 2023, the company reported a revenue decline of 24.7% year-on-year to RMB 4.67 billion, which was below expectations. However, gross margin improved by 5.3 percentage points, and expenses were reduced significantly, resulting in an adjusted net loss of RMB 320 million, a 64.1% reduction compared to the previous year [1][2]. Summary by Sections Revenue Breakdown - F-end (financial clients) revenue increased by 14.8% year-on-year to RMB 2.20 billion, with a 7% increase in paid users to 26.3 million and an ARPU growth of 7.5%. The penetration rate for paid users in the F-end is only 11% compared to over 200 million personal clients of Ping An Group. The company expects low-teens growth for F-end revenue in 2024 [1][2]. - B-end (enterprise clients) revenue surged by 81.2% year-on-year to RMB 1.08 billion, with a 75% increase in paid users to 5.1 million and a growth of 530 enterprises served to 1,508. The B-end client penetration rate is 2.7% against over 55,000 paid enterprises in Ping An Group. The company anticipates mid-teens growth for B-end revenue in 2024 [1][2]. - C-end (individual users) revenue dropped by 62% year-on-year to RMB 1.39 billion. With the completion of strategic adjustments, the company expects C-end revenue to stabilize in 2024 [1][2]. Financial Projections - The adjusted non-IFRS net loss for 2024 is projected to be RMB 230 million, and for 2025, it is expected to turn into profit. The target price is set at 2x the 2025E P/S, reflecting a decrease from the historical average [1][2][3]. - The report includes financial forecasts for 2024E to 2026E, indicating a gradual recovery in revenue and a reduction in net losses over the forecast period [2][6].
业务结构调整基本完成，毛利率及费用缩减推动减亏