Investment Rating - The report maintains an "Outperform" rating for the company, indicating an expected total return over the next 12-18 months that exceeds the relevant market benchmark by more than 10% [8][20][27]. Core Insights - The Traditional Chinese Medicine (TCM) sector is experiencing high prosperity, with the company achieving a revenue of CNY 1.37 billion in the first half of 2024, representing a growth of 38.4% year-on-year, driven primarily by increased outpatient volume [17][19]. - The company added 16 new stores in the first half of 2024, significantly accelerating its expansion, particularly in new first-tier cities such as Jiangsu, Zhejiang, and Shanghai [18][20]. - Profitability metrics show improvement, with a net profit of CNY 0.11 billion (+15.1%) and an adjusted net profit of CNY 0.15 billion (+45.3%) in the first half of 2024, alongside a gross profit margin of 29.4% [19][20]. Revenue and Profit Forecast - The revenue forecast for 2024 and 2025 has been slightly increased to CNY 3.067 billion and CNY 3.882 billion, respectively, reflecting a year-on-year growth of 32.0% and 26.6% [8][20]. - Adjusted net profit is projected to be CNY 0.415 billion for 2024 and CNY 0.539 billion for 2025, with year-on-year growth rates of 36.1% and 30.1% [8][20]. Financial Metrics - The company reported a gross profit margin of 29.4% in the first half of 2024, with a net profit margin of 10.8% [19][20]. - The average customer price increased to CNY 573 (+4.9%), attributed to the company's growth in first-tier cities [17][19]. Shareholder Returns - The company plans to distribute an interim dividend of HKD 0.13 per share, totaling approximately CNY 28.89 million, and has repurchased 2.8 million shares, accounting for 1.1% of total share capital [19][20].

Investment Rating - The report maintains a "Recommended" rating for the company [2][3]. Core Insights - The company has demonstrated continuous high growth, with a revenue increase of 38.4% year-on-year, reaching 1.365 billion RMB in the first half of 2024 [2]. - The growth in revenue is primarily driven by a 31.95% increase in patient visits, totaling 2.383 million, and a 4.95% rise in average consultation fees [2]. - The company is expanding its operations both domestically and internationally, with 71 medical institutions now in operation and 16 new stores added in the first half of 2024 [2]. - The adjusted net profit for the first half of 2024 is reported at 148 million RMB, reflecting a 45.3% year-on-year increase [2]. Financial Performance Summary - Revenue for 2024 is projected to be 3.020 billion RMB, with a growth rate of 30% [3]. - Adjusted net profit is expected to reach 412 million RMB in 2024, with a growth rate of 35% [3]. - The company’s gross margin improved from 28.7% to 29.4% [2]. - The sales expense ratio decreased to 11.73%, while the management expense ratio increased to 8.09% due to stock incentive costs [2]. Future Projections - Revenue forecasts for 2024, 2025, and 2026 are 3.020 billion RMB, 3.911 billion RMB, and 5.046 billion RMB, respectively, with year-on-year growth rates of 30%, 29.5%, and 29% [3]. - The adjusted net profit is projected to be 412 million RMB, 551 million RMB, and 717 million RMB for the same years, with growth rates of 35.08%, 33.79%, and 30% [3]. - The company is expected to maintain a price-to-earnings ratio (P/E) of 21, 16, and 12 for the years 2024, 2025, and 2026, respectively [3].

Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 55 HKD, while the current price is 38.8 HKD [1]. Core Insights - The company's H1 2024 performance is strong, with revenue reaching 1.365 billion HKD (+38.4%) and net profit of 107 million HKD (+15.1%). Adjusted net profit is 148 million HKD (+45.3%) after accounting for equity-settled share-based payments [1][2]. - The core offline business shows robust growth, with healthcare solutions revenue at 1.345 billion HKD (+39.3%) and offline medical institutions generating 1.231 billion HKD (+43.7%). Online healthcare platform revenue increased to 134 million HKD (+3.6%) [2]. - Patient visits increased to 2.383 million (+31.9%), with a customer retention rate of 69.5% (+2.2 percentage points). The average spending per visit rose to 573 HKD, reflecting a higher proportion of self-paid outpatient income [2]. - The gross profit margin improved to 29.4% (+0.7 percentage points), attributed to a higher proportion of revenue from in-house doctors, which reduced the cost of sales [2]. - The company is expected to achieve adjusted net profits of 412 million, 558 million, and 753 million HKD for 2024-2026, representing year-on-year growth of 35.2%, 35.4%, and 35.0% respectively [2]. Financial Summary - Total revenue for 2024E is projected at 3.039 billion HKD, with a year-on-year growth rate of 30.6%. The net profit for 2024E is estimated at 334 million HKD (+32.5%) [3]. - The price-to-earnings (P/E) ratio is expected to decrease from 35.0 in 2023A to 26.2 in 2024E, and further down to 12.0 by 2026E [3][7]. - The company’s total assets are projected to grow from 3.379 billion HKD in 2023A to 5.851 billion HKD in 2026E [7].

Investment Rating - The report assigns a "Buy" rating to Gushengtang (02273 HK) with a target price of HKD 48 11 per share based on a 25X PE multiple for its 2024 NonGaap net profit [2][4] Core Views - Gushengtang achieved rapid growth in H1 2024 with revenue of RMB 1 365 billion (+38 4% YoY) and adjusted net profit of RMB 148 million (+45 3% YoY) demonstrating strong operational capabilities and the vast potential of the TCM chain clinic model [2] - The company is expanding rapidly through both self-built and M&A strategies adding 4 new self-built clinics and acquiring dozens of offline medical institutions including Kunshan Laien and Beijing Asian Games Village TCM Hospital It has also entered new cities like Changsha and Xuzhou and expanded internationally with the acquisition of Singapore-based Baozhongtang [2] - Gushengtang announced its first interim dividend of HKD 0 13 per share to be distributed on September 25 2024 and repurchased approximately 860 000 shares for HKD 33 77 million in June 2024 to boost investor confidence [2] Financial Performance and Projections - Revenue is projected to grow from RMB 2 323 billion in 2023 to RMB 5 594 billion in 2026 with a CAGR of 32 7% [3][8] - NonGaap net profit is expected to increase from RMB 305 million in 2023 to RMB 763 million in 2026 with a CAGR of 32 4% [3][8] - The company's gross margin is forecasted to remain stable at around 30 6%-31 4% from 2024 to 2026 [9] Expansion and Strategy - Gushengtang's offline TCM clinics now cover 19 cities domestically and internationally with 72 branches as of June 2024 [2] - The company is accelerating its city-level penetration and new city expansion while also pursuing international growth through acquisitions [2] Valuation and Metrics - The report values Gushengtang at a 25X PE multiple for its 2024 NonGaap net profit resulting in a target price of HKD 48 11 per share [2] - Key valuation metrics include a projected NonGaap PE of 18 7X for 2024 and an EV/EBITDA of 11 5X for the same year [3][9]

Investment Rating - The report maintains a rating of "Buy" for the company [2][5]. Core Insights - The company has shown strong performance with a revenue of 1.365 billion yuan in H1 2024, representing a growth of 38.4%, and a net profit of 107 million yuan, up by 15.1% [5]. - The adjusted net profit reached 148 million yuan, marking a significant increase of 45.3% [5]. - The gross margin improved to 29.4%, an increase of 0.7 percentage points, while the adjusted profit margin rose to 10.8%, up by 0.5 percentage points [5]. - The company forecasts adjusted net profits of 399 million, 519 million, and 670 million yuan for 2024, 2025, and 2026, respectively, indicating year-on-year growth rates of 31%, 30%, and 29% [5]. - The target market capitalization is set at 12 billion yuan, with a target price of 48.97 yuan (53.52 HKD) based on a PE ratio of 30X for 2024 [5]. Summary by Sections Performance Overview - The company added 420,000 new customers in H1 2024, a growth of 21.1%, bringing the total customer base to 3.957 million [5]. - The number of customer visits reached 2.383 million, an increase of 31.9%, with a customer retention rate of 69.5%, up by 2.2 percentage points [5]. - Average spending per visit increased to 573 yuan, reflecting a growth of 4.9% [5]. - Membership numbers grew by 49.3% to 261,000, with member visits increasing by 51.1% to 938,000 [5]. Expansion and Market Share - The company is expanding its market presence through both self-built and acquired branches, adding 16 new locations (4 self-built and 12 acquired) [5]. - The company has entered new cities including Singapore, Changsha, Xuzhou, and Changshu, operating a total of 74 stores across 20 cities [5]. - The company has established partnerships with 26 medical alliances, enhancing its doctor resources with over 39,000 practicing physicians [5]. Financial Projections - Revenue projections for the next three years are as follows: 3.029 billion yuan for 2024, 3.925 billion yuan for 2025, and 5.033 billion yuan for 2026, with respective growth rates of 30.2%, 29.6%, and 28.2% [7]. - The adjusted net profit is expected to grow significantly, with projections of 399 million yuan for 2024, 519 million yuan for 2025, and 670 million yuan for 2026 [7].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the market benchmark within the next six months [16]. Core Insights - The company reported a revenue of 1.37 billion RMB for the first half of 2024, representing a year-on-year growth of 38.4%, and a net profit attributable to shareholders of 107 million RMB, up 15.1% [2][3]. - The offline medical institutions generated 1.23 billion RMB in revenue, reflecting a 43.7% increase, driven by new acquisitions and growth in existing institutions [3]. - The company has expanded its operational footprint, owning and operating 71 medical institutions as of June 30, 2024, an increase of 15 from the end of 2023 [5]. Financial Analysis - The company achieved a gross margin of 29.4%, a year-on-year increase of 0.7 percentage points, and a net profit margin of 7.8% [4]. - The sales expense ratio, management expense ratio, and financial expense ratio were 11.7%, 8.1%, and 0.6%, respectively, with minor changes compared to the previous year [4]. - The adjusted net profit margin improved to 10.8%, an increase of 0.51 percentage points [4]. Revenue and Profit Forecast - The company is projected to achieve revenues of 2.99 billion RMB, 3.89 billion RMB, and 4.97 billion RMB for the years 2024, 2025, and 2026, respectively [6]. - The forecast for net profit attributable to shareholders is adjusted to 329 million RMB, 447 million RMB, and 585 million RMB for the same years [6]. Market Position and Growth Potential - The company is positioned as a leading player in the Chinese traditional Chinese medicine (TCM) healthcare service industry, benefiting from strong demand and supportive policies [6]. - The company's business model demonstrates significant replicability, with advantages in brand, talent, and resources, indicating substantial long-term growth potential [6].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price adjusted to HKD 67.87, indicating a potential upside of 74.9% from the current price of HKD 38.80 [3][16]. Core Insights - The company reported a revenue increase of 38.4% year-on-year to RMB 1.37 billion, with adjusted net profit rising 45.3% to RMB 150 million for the first half of 2024 [1]. - The management has raised the annual store expansion target from 10-15 to 18-25 new stores, reflecting a faster-than-expected pace of growth [1]. - The company continues to strengthen its competitive advantage in doctor resources, with a total of 26 medical alliance units established, enhancing its reputation and quality of service [1]. Financial Performance - Revenue for FY24E is projected at RMB 3.112 billion, with a year-on-year growth of 33.9%, and adjusted net profit expected to reach RMB 417 million, reflecting a growth of 36.9% [2][11]. - The adjusted earnings per share for FY24E is forecasted to be RMB 1.70, with a decreasing adjusted P/E ratio from 27.8 in FY23A to 21.0 in FY24E [2][14]. Store Expansion and Market Position - As of July 2024, the company has added 16 new stores, bringing the total to 74, with a focus on high-potential regions such as the Yangtze River Delta and major cities [1]. - The management aims to increase store density in cities where it already operates, leveraging economies of scale [1]. Shareholder Returns - The company plans to increase the proportion of dividends and buybacks to 30-50% of net profit over the next 3-5 years, with an interim dividend of approximately HKD 31.54 million announced [1].

证券研究报告 港股公司|公司点评|固生堂（02273） 业绩快速增长，门店扩张加速 请务必阅读报告末页的重要声明 glzqdatemark1 2024年08月22日 证券研究报告 |报告要点 公司发布 2024 年半年报，2024 年上半年公司实现营业收入 13.65 亿元，同比增长 38.4%；净 利润 1.07 亿元，同比增长 15.1%；经调整净利润 1.48 亿元，同比增长 45.3%。公司门诊人次、 回头率和次均消费均实现增长，其中门诊人次达 238.33 万人次，同比增长 31.9%；服务人数 达 77.07 万人，同比增长 26.4%；回头率从 2023 年上半年的 67.3%进一步提升至 69.5%。 |分析师及联系人 郑薇 SAC：S0590521070002 请务必阅读报告末页的重要声明 1 / 2 港股公司|公司点评 glzqdatemark2 2024年08月22日 固生堂(02273) 业绩快速增长，门店扩张加速 | --- | --- | --- | |-------|------------|-------------------| | 行 | 业： | 医药生物/医疗服务 | ...

[Table_StockNameRptType] 固生堂（02273） 公司点评 稳扎稳打，持续增长，未来可期 | --- | --- | |--------------------------------|-------------| | [Table_Rank] | | | 报告日期： | 2024-08-21 | | [Table_BaseData]收盘价（港元） | 38.80 | | 近 12 个月最高/ | 52.40/32.70 | | 总股本（百万股） | 245 | | 流通股本（百万股） | 245 | | 流通股比例（% | 100.00 | | 总市值（亿港元） | 95 | | 流通市值（亿港元） | 95 | [公司价格与 Table_Chart]恒生指数走势比较 -50.00% 0.00% 50.00% 0 500 23-0823-1023-1224-0224-0424-0624-08 成交金额 固生堂 恒生指数 分析师：谭国超 执业证书号：S0010521120002 邮箱：tangc@hazq.com 分析师：陈珈蔚 执业证书号：S0010524030001 邮箱：chenj ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has consistently exceeded performance expectations, with successful expansion through acquisitions [1] - In the first half of 2024, the company achieved revenue of 1.365 billion RMB, a year-on-year increase of 38.4%, and adjusted net profit of 148 million RMB, up 45.3% year-on-year [3] - The company continues to see high growth in offline revenue, with a 43.7% year-on-year increase to 1.231 billion RMB, and an increase in average spending per visit to 572 RMB from 546 RMB in the first half of 2023 [3] - The company has successfully advanced its acquisition strategy, establishing 4 new stores and acquiring 12 stores, entering 4 new cities [3] - The company is actively developing in-house formulations and expanding its medical alliance network, adding 6 new cooperative units in 2024, bringing the total to 26 [3] - The company is projected to achieve revenues of 3.103 billion RMB, 3.979 billion RMB, and 4.993 billion RMB for 2024, 2025, and 2026 respectively, with corresponding net profits of 344 million RMB, 447 million RMB, and 567 million RMB [3] Financial Summary - As of August 21, 2024, the closing price is 38.80 HKD, with a circulating share capital of 245 million shares and a net asset value per share of 9.51 HKD [1] - The company’s revenue growth rates are projected at 33.57% for 2025 and 28.21% for 2026, with net profit growth rates of 36.30% and 29.92% for the same years [6][7] - The company’s PE ratios are expected to decrease from 47.55 in 2023 to 15.55 by 2026, indicating improving valuation metrics [6][7]