Core Viewpoint - The company, Guoshengtang (02273), is expected to have strong earnings growth, with projected net profits for 2025-2027 of 400 million, 518 million, and 664 million yuan, representing year-on-year increases of 30.5%, 29.4%, and 28.2% respectively. The current stock price corresponds to PE ratios of 15.8, 12.2, and 9.5 for 2025-2027. A target PE of 20 times for 2026 suggests a target stock price of 49.09 HKD, maintaining a "strong buy" rating [1]. Group 1: Business Expansion - Since July 2025, the company has added 4 new branches through acquisitions, increasing the total number of branches to 87, enhancing regional service capabilities [2]. - The acquisition of Shenzhen Tianyuan Hospital is significant for integrating medical insurance, as it allows the company to access insurance coordination in Shenzhen, improving its competitive edge in the market [2]. - The acquisition of Tianjin Ping An Clinic marks the company's entry into the fourth largest traditional Chinese medicine market in China, opening new revenue opportunities in the Beijing-Tianjin-Hebei region [2]. Group 2: International Collaboration - On October 22, the company entered a strategic partnership with Singapore's 1doc to establish a joint venture, with the company holding a 70% stake and managing operations. This collaboration aims to leverage 1doc's established clinic network in Singapore for rapid scaling and efficient patient conversion [2]. Group 3: Share Buyback Program - The company has actively engaged in share buybacks, reflecting management's confidence in long-term value. Since September 1, 2025, it has conducted 42 buyback transactions totaling 8.14 million shares, with an investment of approximately 247 million HKD [3]. - On November 6, 2025, the board approved an additional buyback authorization of up to 300 million HKD, bringing the total buyback plan to a record high of 600 million HKD since the company's listing [3].
华创证券：固生堂股份回购加码彰显信心 维持“强推”评级