Investment Rating - The report maintains a "Buy" rating for the company [9] Core Views - The company is experiencing a robust recovery in revenue growth, with a 12.7% year-on-year increase in offline patient visits in Q1 2025, showing a month-on-month acceleration trend [1] - The company plans to accelerate its store expansion, aiming to open 15-20 new stores in 2025, including both self-built and acquisitions, and is also focusing on overseas expansion [9] - The company has launched its first AI digital twin of a renowned traditional Chinese medicine doctor, which is expected to enhance the overall diagnostic quality of its medical team [9] - The company is increasing the proportion of self-paid income, with limited impact from the national collection of traditional Chinese medicine pieces [9] - The company has returned a total of 420 million RMB to shareholders through dividends and buybacks in 2024, which is 137% of its net profit for that year [9] Financial Summary - For FY25E, the company is projected to achieve sales revenue of 3,828 million RMB, with a year-on-year growth of 26.7% [2] - Adjusted net profit for FY25E is expected to be 482 million RMB, reflecting a year-on-year growth of 20.4% [2] - The adjusted earnings per share for FY25E is forecasted at 2.04 RMB [2] - The adjusted P/E ratio for FY25 is estimated at 15.2 times [1][2] Price Target - The target price for the company is set at 52.75 HKD, representing a potential upside of 56.3% from the current price of 33.75 HKD [3]
固生堂（02273）：收入增长快速复苏，门店扩张提速