Market News

According to a research report released by Citigroup, the income of Ping an good Doctor (01833.HK) fell 21.4 per cent year-on-year to 2.222 billion yuan in the first half, 26 per cent and 30 per cent lower than market expectations and bank expectations respectively, while the net loss was 245 million yuan, narrowed from the 462 million yuan loss in the same period last year and better than expected. The gross profit margin increased to 32.2% from 27.3% in the first half of last year, mainly due to the strategic shift from low-profit business to high-profit business. The bank cut its income forecast for Ping an good doctors by 25 per cent, 23 per cent and 20 per cent from 2023 to 2025 to reflect falling earnings from withdrawing from lower gross margins. The target price was lowered from $40 to $35, maintaining the "buy" rating.