Company Overview - Founded in 2010 and headquartered in Guangzhou, China, the company is a leading private Chinese medicine chain management group integrating Chinese medicine diagnosis and treatment, drug research and development, and Chinese medicine talent cultivation [2] - As of July 2024, the company operates 74 offline stores, primarily covering East China, South China, and North China markets [2] - Revenue grew from RMB 900 million in 2019 to RMB 2.32 billion in 2023, with adjusted net profit increasing from RMB 77 million to RMB 305 million during the same period [2] - In the first half of 2024, the company achieved revenue of RMB 1.365 billion and adjusted net profit of RMB 150 million [2] Industry Growth - The Chinese traditional medicine health industry was estimated at RMB 1.282 trillion in 2022, with a projected market size of RMB 1.816 trillion by 2025, representing a 12% CAGR from 2022 to 2025 [3] - The market share of Chinese medicine diagnosis and treatment services was approximately 45% in 2022 [3] - The market size for Chinese medicine diagnosis and treatment services is expected to grow from RMB 576 billion in 2022 to RMB 989 billion in 2025, with a 20% CAGR [3] Business Strategy - The company has established a stable cooperation relationship with over 37,000 Chinese medicine practitioners through its doctor partnership program, including 14,000 senior title doctors [4] - Membership consumption accounted for 47% of offline revenue in the first half of 2024, up from 25% in 2020 [4] - The company expanded its store network from 34 in 2018 to 71 in the first half of 2024 through self-construction and acquisitions [4] - Online business revenue accounted for 10% of total revenue in the first half of 2024, driven by the development of the OMO model [4]
【固生堂（2273.HK）】深耕中医诊疗服务行业，线上线下布局奠定龙头地位——投资价值分析报告（王明瑞/吴佳青/黎一江）
光大证券研究·2024-11-30 00:09