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].
固生堂：门店扩张速度进入快车道，加速打造第一民营中医品牌