Company Coverage
Ping An Healthcare and Technology Company (1833 HK): 3Q26: Revenue Decline Deepens; Low-Margin Business Run-off To Weigh On Revenue Until Early-27
HOLD (Maintained)
Current price:
Target price:
Upside:
Previous TP :
HK$5.56
HK$6.00
+8.0%
HK$6.70
Analyst
Analyst
Highlights
- PAGD’s 3Q26 revenue and adjusted net profit fell 16.2% and 38.6% yoy respectively on continued low-margin business run-off. 9M26 revenue decreased 5.8% yoy, while adjusted net profit rose 19.5% yoy.
- The company guided for low-teens decline in 2026 revenue and around-breakeven profit in 2H26. We maintain our 2026 revenue and adjusted net profit growth forecasts at -12.1% and -40.1% yoy, respectively.
- Maintain HOLD with a lower target price of HK$6.00, reflecting a deeper 2H26 revenue drag and limited visibility on 2027’s recovery pace.
Analysis
- 3Q26 revenue decline deepened to 16.2% yoy. Ping An Healthcare and Technology Company’s (PAGD) 9M26 revenue fell 5.8% yoy, while adjusted net profit rose 19.5% yoy to Rmb258m, already exceeding our and consensus estimated Rmb248m (-40.1% yoy) and Rmb298m (-28.0% yoy) for 2026. However, 3Q26 revenue dropped 16.2% yoy to Rmb1.02b, a sharper decline vs 8.0% yoy in 2Q26. Adjusted net profit fell 38.6% yoy to Rmb32m in 3Q26, with adjusted net margin narrowing 1.1ppt yoy to 3.1%. The 3Q26 results are mixed, with a deeper revenue decline but profit ahead of our forecast.
Highlights
- PAGD’s 3Q26 revenue and adjusted net profit fell 16.2% and 38.6% yoy respectively on continued low-margin business run-off. 9M26 revenue decreased 5.8% yoy, while adjusted net profit rose 19.5% yoy.
- The company guided for low-teens decline in 2026 revenue and around-breakeven profit in 2H26. We maintain our 2026 revenue and adjusted net profit growth forecasts at -12.1% and -40.1% yoy, respectively.
- Maintain HOLD with a lower target price of HK$6.00, reflecting a deeper 2H26 revenue drag and limited visibility on 2027’s recovery pace.
Analysis
- 3Q26 revenue decline deepened to 16.2% yoy. Ping An Healthcare and Technology Company’s (PAGD) 9M26 revenue fell 5.8% yoy, while adjusted net profit rose 19.5% yoy to Rmb258m, already exceeding our and consensus estimated Rmb248m (-40.1% yoy) and Rmb298m (-28.0% yoy) for 2026. However, 3Q26 revenue dropped 16.2% yoy to Rmb1.02b, a sharper decline vs 8.0% yoy in 2Q26. Adjusted net profit fell 38.6% yoy to Rmb32m in 3Q26, with adjusted net margin narrowing 1.1ppt yoy to 3.1%. The 3Q26 results are mixed, with a deeper revenue decline but profit ahead of our forecast.
HOLD (Maintained)
Current price:
Target price:
Upside:
Previous TP :
HK$5.56
HK$6.00
+8.0%
HK$6.70
Analyst
Analyst
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