PA GOODDOCTOR (01833.HK) has received a full acquisition offer from its controlling shareholder, Ping An Insurance (02318.HK). However, Jefferies has published a research report indicating a negative outlook on PA GOODDOCTOR.

Jefferies stated that this offer price is disappointing, and Ping An Insurance emphasizes a renewed focus on the Insurance Business, aiming to marginalize non-core operations. Given that PA GOODDOCTOR heavily relies on customer traffic from Ping An Insurance, this is negative for PA GOODDOCTOR. Additionally, it cannot be ruled out that Ping An Insurance might substitute subsidiaries with suboptimal assets in exchange for liquidity.

Jefferies has lowered its revenue forecast for PA GOODDOCTOR for 2025 and 2026 by 2% and 4%, respectively, while also reducing the earnings per share forecast by 5% and 6%. Its rating has been downgraded to 'Underperform', with a new Target Price of 4.8 yuan. (sl/~