First Read Guangzhou Kingmed Diagnostics: 1H26 prelim results beat expectations; ambitious incentive targets point to upside

研报英文原文证据摘录

First Read Guangzhou Kingmed Diagnostics: 1H26 prelim results beat expectations; ambitious incentive targets point to upside

Global Research

14 July 2026ab

First Read

EquitiesGuangzhou Kingmed Diagnostics

1H26 prelim results beat expectations; ambitious China

incentive targets point to upside Healthcare Providers

12-month rating Sell

12m price target Rmb23.30

1H26 earnings above expectations

Kingmed released its preliminary 1H26 results, reporting net profit attributable to

shareholders of Rmb170-220m (+300-359% YoY) and recurring net profit of Rmb180- Price (13 Jul 2026) Rmb25.82

230m (+284-335% YoY). The profit exceeded our estimate (Rmb116m) and VA RIC: 603882.SS BBG: 603882 CH

consensus (Rmb129m). Management attributed the strong earnings to 1) ongoing cost-

Trading data and key metrics

reduction and efficiency-enhancement initiatives, supported by digital and intelligent

transformation efforts; and 2) the substantial clearance of the adverse impact from 52-wk range Rmb37.03-22.16

accounts receivable impairment losses. Market cap. Rmb12.0b/US$1.76b

Shares o/s 463m (ORDA)

Incentive plan signals confidence in recovery Free float 20%

Kingmed also announced a restricted share and stock option incentive plan, with Avg. daily volume ('000) 5,862

performance targets tied specifically to revenue and recurring net profit over 2026-28. Avg. daily value (m) Rmb150.8

For full vesting, revenue growth is required to reach 6.0%, 14.48%, and 25.928%, Common s/h equity (12/26E) Rmb6.97b

respectively, relative to the 2025 revenue base, while recurring net profit must reach P/BV (12/26E) 1.7x

Rmb390m, Rmb500m, and Rmb600m in 2026, 2027 and 2028 respectively. The Net debt to EBITDA (12/26E) NM

performance targets are above both our forecasts and VA consensus, underscoring