Founded in 2015, Fangzhou Inc. (6086.HK) is distinguished by its combination of high-quality physician resources and a comprehensive product portfolio. Since 2023, the company has ranked as China’s leading online chronic disease management platform. As of 1H25, monthly active users exceeded 11.9 million, with a repeat purchase rate of 85.4%. The platform’s registered doctors increased to 229,000, of whom 58.9% are from Tier-III (top-tier) hospitals. Backed by these premium medical resources, the company provides chronic disease patients with ongoing online consultations, e-prescription services, and prescription refills. The platform collaborates with over 1,650 suppliers and more than 980 pharmaceutical companies, including leading multinational and domestic players. Its product offering spans over 216,000 SKUs, with 62% being prescription drugs.
Large and Expanding Market Opportunity; Strategic Expansion Is a Natural Progression. According to forecasts by CIC, measured by GMV, China’s online consumer-facing chronic disease management market is expected to grow from RMB 45.5 billion in 2023 to RMB 600 billion by 2030, implying a 44.5% CAGR. Penetration of online chronic disease management is projected to rise from 2.9% to 16.1% over the same period. Demand is particularly strong in specialty areas such as weight management and metabolic diseases, which—together with the broader adoption of innovative drugs—are becoming the core growth engines of the industry. Positioned squarely within this high-growth segment, the company leverages its first-mover advantage under the “AI + H2H (Hospital-to-Home)” model, underscoring its strategic value and supporting a favorable long-term outlook for both the industry and the company.
“Familiar Doctor–Patient” Model Builds a Trust Flywheel and Supports Long-Term, In-Depth Management. The company’s core “familiar doctor–patient” model fosters long-term, stable, and trustworthy relationships. Through continuous interactions and end-to-end services, this model deeply connects doctors and patients. It not only addresses chronic disease patients’ need for long-term support and reassurance but also improves physician efficiency and enhances patient management value. This strong, trust-based relationship underpins the platform’s high repeat purchase rate (85.4%) and sustained user lifetime value.
AI + H2H Ecosystem Further Unlocks Value; Valuation Appears Compelling. Leveraging its ecosystem built on long-term doctor–patient relationships, the company is able to better capture the substantial lifetime value of chronic disease patients while also meeting the needs of other key healthcare stakeholders, including physicians and pharmaceutical companies. 1H25 results mark an inflection point in the monetization of chronic patient value. With the continued build-out of its AI + H2H innovation ecosystem, user value is expected to become increasingly visible. At a share price of HKD 2.10, the company’s market capitalization is approximately HKD 2.82 billion. Revenue is projected to reach HKD 3.5 billion in 2025 and HKD 4.8 billion in 2026, implying P/S multiples of 0.8x and 0.6x, respectively—well below peer averages of 4.9x and 4.1x—suggesting meaningful valuation upside.
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