Core Viewpoint - Company maintains a positive outlook with a target price of 52.8 HKD, indicating a potential upside of 62.5% based on projected P/E ratios for 2025-2026 [1] Financial Performance - For 1H25, company reported revenue of 1.495 billion RMB, a year-on-year increase of 9.5%, and adjusted net profit of 170 million RMB, up 24.4% [1] - Adjusted net profit margin for 1H25 was 11.4%, reflecting a 0.6 percentage point increase year-on-year [1] Revenue Growth Drivers - Offline store revenue for 1H25 reached 1.37 billion RMB, an 11.1% increase year-on-year, driven by same-store growth and acquisitions contributing approximately 8.2% and 2.4% respectively [2] - Customer traffic increased to 2.747 million visits, a 15.3% rise, with initial and follow-up visits growing by 11.0% and 15.0% respectively [2] Expansion Strategy - As of the end of 1H25, the company operated 83 offline stores, with 7 new stores added in the first half of the year, maintaining cautious and steady expansion [3] - In Singapore, the company achieved revenue of 2.143 million RMB in 1H25, a significant growth of 121.2%, through a combination of self-built flagship stores and clinic partnerships [3] Profitability and Cash Flow - The company reported a gross margin of approximately 30.6% for 1H25, with an adjusted net profit margin of 10.1%, indicating ongoing improvement in profitability [4] - Operating cash flow reached 300 million RMB in 1H25, a 111% increase year-on-year, with cash reserves of 1.37 billion RMB as of the end of 1H25 [4] - The company announced a share buyback of up to 300 million HKD and a mid-term dividend of 75.766 million RMB, representing 50% of net profit, fulfilling its commitment to return value to shareholders [4]
中金：维持固生堂(02273)跑赢行业评级 目标价52.8港元