Core Viewpoint - The completion of the acquisition of 100% equity in Singapore's Dazhongtang marks a significant step for the company towards large-scale overseas expansion, with plans to increase the number of clinics in Singapore and enter markets like Hong Kong and Malaysia [1][2]. Group 1: Acquisition and Expansion Plans - The company has acquired 14 traditional Chinese medicine clinics in Singapore, covering key business districts and residential areas [2]. - The revenue of Dazhongtang in 2024 was approximately 8 million Singapore dollars (around 50 million RMB), with a growth rate exceeding 5% in 2025 [2]. - The company aims to acquire an additional 10-20 clinics in Singapore and become the leading TCM service brand in the region by 2026 [2]. Group 2: Domestic Market and Policy Environment - The domestic policy environment is stabilizing, which is favorable for leading companies in the industry [2]. - In Wuxi, the company's store revenue increased by over 40% year-on-year in October 2025, with a profit margin of 26%, significantly above the company average [2]. - The optimization of traditional Chinese medicine decoction pieces procurement rules allows the company to enjoy favorable pricing without participating in collective procurement [2]. Group 3: Shareholder Returns and Financial Outlook - The company has repurchased shares worth 232 million HKD from July 1 to November 17, 2025, significantly exceeding the 85 million HKD repurchase in the first half of the year [3]. - The management has committed to maintaining a 50% dividend payout ratio, reflecting confidence in the company's growth [3]. - The adjusted revenue growth forecasts for 2025E, 2026E, and 2027E are 11.3%, 21.9%, and 24.0%, respectively, with adjusted net profit growth of 11.9%, 23.8%, and 26.3% [3].

Industry Insights - The domestic demand for cranes in the Chinese engineering machinery industry continues to recover, with sales of truck-mounted cranes and crawler cranes increasing by 42% and 54% year-on-year in October, respectively, driven by energy projects and wind power installations [2] - Exports of various types of engineering machinery also performed strongly in October, except for aerial work platforms and truck-mounted cranes, confirming the previous view that non-earthmoving machinery demand is recovering and will act as a catalyst for the industry [2] - The report maintains a "Buy" rating for companies such as Zoomlion (1157 HK / 000157 CH), Sany Heavy Industry (600031 CH), and Hengli Hydraulic (601100 CH), while adopting a cautious stance on Zhejiang Dingli (603338 CH) due to the continued weakness in aerial work platform sales, which fell by 39% year-on-year in October [2] Company Insights - Pinduoduo (PDD US) reported a 9.0% year-on-year revenue growth in Q3 2025, reaching 108.3 billion RMB, slightly above Bloomberg consensus expectations, primarily driven by a 7% increase in transaction service fees [6] - Baidu (BIDU US) reported a core revenue of 24.7 billion RMB in Q3 2025, a 7.0% year-on-year decline, but slightly above market expectations, with non-GAAP operating profit showing a 67% year-on-year decline [7] - Trip.com Group (TCOM US) achieved a total revenue of 18.4 billion RMB in Q3 2025, a 15.5% year-on-year increase, exceeding both internal and market expectations, driven by strong operational leverage [8] - BOSS Zhipin (BZ US) reported a 13% year-on-year revenue growth to 2.16 billion RMB in Q3 2025, with non-GAAP net profit increasing by 34% to 999.2 million RMB, benefiting from effective control of sales and R&D expenses [10] - Xiaomi Group (1810 HK) saw a 22% year-on-year revenue growth in Q3 2025, driven by the rapidly growing smart electric vehicle business and resilient internet segment, despite pressures from rising memory costs [11] - Luckin Coffee (LKNCY US) anticipates continued revenue growth in FY26, driven by store expansion and new product strategies, despite a cautious outlook on same-store sales growth due to high base effects [12][13] - Guosheng Tang (2273 HK) is entering a phase of overseas expansion with the acquisition of a 100% stake in a Singapore-based TCM clinic, aiming for significant revenue growth in the overseas market by 2026 [17][18]

Investment Rating - The report maintains a "Buy" rating for the company [7][3][8] Core Views - The company has completed the acquisition of 100% of the shares of a Singapore-based TCM clinic, marking the beginning of its overseas expansion [7][8] - The company plans to increase its store count in Singapore and expand into markets such as Hong Kong and Malaysia, with expected overseas revenue of 200-300 million RMB by 2026 [7][8] - The domestic policy environment is stabilizing, which is expected to benefit leading companies in the sector [7][8] - The management's confidence is reflected in significant share buybacks and a commitment to maintain a 50% dividend payout ratio [7][8] Financial Summary - Sales revenue is projected to grow from 3,022 million RMB in FY24 to 4,099 million RMB in FY26, representing a growth rate of 30.1% and 21.9% respectively [2][12] - Adjusted net profit is expected to increase from 400 million RMB in FY24 to 555 million RMB in FY26, with growth rates of 31.4% and 23.8% respectively [2][12] - The adjusted earnings per share (EPS) is forecasted to rise from 1.64 RMB in FY24 to 2.40 RMB in FY26 [2][12] Valuation - The target price is set at 44.95 HKD, with a potential upside of 50.3% from the current price of 29.90 HKD [3][7] - The adjusted price-to-earnings (PE) ratio for FY26 is estimated at 11.5x [7][10] Shareholder Structure - The largest shareholder holds 35.1% of the company, indicating a concentrated ownership structure [4]

Core Viewpoint - The company is accelerating its overseas expansion through acquisitions, with a recent agreement to acquire 100% of Da Zhong Tang in Singapore, marking a significant step in its strategy to internationalize traditional Chinese medicine [4][5]. Group 1: Acquisition and Expansion - The company announced the acquisition of Da Zhong Tang, which operates 14 traditional Chinese medicine clinics in Singapore, enhancing its local service capabilities and user trust [4][5]. - This acquisition follows a strategic partnership with a digital healthcare platform, indicating a robust approach to expanding its market presence in Singapore through a combination of acquisitions, partnerships, and self-built initiatives [5]. Group 2: AI Development in Traditional Medicine - The company is developing AI representations of renowned doctors, leveraging extensive clinical data to replicate expert diagnostic capabilities and enhance patient care [6]. - The AI system, based on deep learning algorithms, aims to facilitate knowledge transfer from top experts to junior doctors, thereby improving the efficiency of medical resource allocation and accelerating revenue growth [6].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 收購大中堂的股權 本公司董事（「董事」）會（「董事會」）欣然宣佈，於2025年11月16日，本公司附 屬公司Gushengtang Singapore TCM Healthcare Technologies Holdings Private Limited （「Gushengtang Singapore」）與DA ZHONG TANG PTE. LTD.（「大中堂」）的 股 東 （「賣方」）訂立股權轉讓合同（「股權轉讓合同」），據此，Gushengtang Singapore同 意收購，而賣方同意出售大中堂100%股權及相關權益（「收購事項」）。 於收購事項完成後，大中堂將成為本公司的附屬公司，而大中堂的財務業績將 併入本集團的綜合財務報表。本公司將根據香港聯合交易所有限公司證券上 市規則（「上市規則」）於必要時另行作出公告，以提供有關收購事項的最新進展。 – 1 – 有關大中堂的資料 GUSHENGT ...

Core Viewpoint - Company maintains net profit forecasts for 2025-2026 at RMB 4.05 billion and RMB 5.21 billion, with current stock price corresponding to P/E ratios of 14.8 and 11.3 for 2025-2026, respectively, and a target price of HKD 45.8, indicating a potential upside of 62.5% [1] Group 1: Financial Performance - In Q3 2025, the number of patients treated reached approximately 1.607 million, representing a year-on-year growth of 8.2% [2] - The company expects the average selling price (ASP) to stabilize, despite minor impacts from recent healthcare policy changes, with profit margins anticipated to continue improving due to cost optimization efforts [2] Group 2: Strategic Initiatives - The company has partnered with a digital healthcare platform in Singapore to integrate traditional Chinese medicine (TCM) services into Western medical clinics, aiming for a 70% control in the TCM treatment area [3] - The "National Medicine AI Avatar" platform was launched in Singapore, providing a learning platform for TCM practitioners and laying the groundwork for global resource sharing [3] Group 3: Shareholder Returns - From Q1 to Q3 2025, the company repurchased shares worth RMB 141 million and declared a mid-term dividend of RMB 76 million, resulting in a total shareholder return of approximately RMB 217 million, equating to a return rate of 3.2% [4] - With the recent share buyback announcement, the expected shareholder return rate could rise to 5.2%, with a potential annual return rate of around 7% if the dividend distribution remains consistent [4]

Core Viewpoint - Company maintains net profit forecasts for 2025-2026 at RMB 4.05 billion and RMB 5.21 billion, with current stock price corresponding to P/E ratios of 14.8 and 11.3 for those years, respectively. The target price is set at HKD 45.8, indicating a potential upside of 62.5% from the current level [1] Group 1: Financial Performance - In Q3 2025, the number of patients treated reached approximately 1.607 million, reflecting a year-on-year growth of 8.2% [2] - The company expects the average selling price (ASP) to stabilize, despite minor impacts from recent healthcare policy changes. The profit margin is anticipated to continue improving due to cost optimization efforts [2] Group 2: Strategic Initiatives - The company has partnered with a digital healthcare platform in Singapore to integrate traditional Chinese medicine (TCM) services into Western medical clinics, aiming for a 70% control in the TCM treatment area [3] - The "National Medicine AI Avatar" platform was launched in Singapore, providing a learning platform for TCM practitioners and laying the groundwork for global resource sharing [3] Group 3: Shareholder Returns - From Q1 to Q3 2025, the company repurchased shares worth RMB 141 million and declared a mid-term dividend of RMB 76 million, resulting in a total shareholder return of approximately RMB 217 million, equating to a return rate of 3.2% [4] - With the recent share buyback announcement, the expected shareholder return rate could rise to 5.2%, with a potential annual return rate of around 7% if the dividend distribution remains consistent [4]

Core Viewpoint - Company achieved impressive mid-year results for 2025, with significant growth in revenue and net profit, indicating strong operational efficiency and profitability improvement [1][2][3] Financial Performance - Revenue reached 1.49 billion RMB, a year-on-year increase of 9.5% [2] - Net profit was 151.95 million RMB, up 41.6% year-on-year [2] - EBITDA was approximately 270 million RMB, reflecting a 37.3% increase [1][2] - Operating cash flow surged to 300 million RMB, a remarkable growth of 111% [3] - Free cash flow increased by 466% to 210 million RMB, showcasing enhanced capital allocation efficiency [3] Strategic Growth Drivers - Company is transitioning into a global TCM resource integration platform, supported by three strategic pillars: user trust and doctor resources, strong offline business growth, and global expansion [4][8] - User engagement increased with outpatient visits exceeding 2.747 million, a 15.3% rise, and follow-up patient visits growing by 14.8% [5] - Membership revenue contributed 620 million RMB, with a retention rate of 85.8%, indicating strong customer loyalty [6] Offline Business Performance - Offline revenue reached 1.37 billion RMB, a year-on-year growth of 11.1% [7] - Same-store sales accounted for 97.3% of total revenue, highlighting operational optimization rather than mere store expansion [7] - Company expanded its store network to 83 locations across 20 cities and Singapore, with plans for further growth [7] International Expansion and Product Development - Company accelerated its international strategy, with Singapore as the first overseas market, achieving significant operational success [11] - The proprietary product "Hair Nourishing Granules" received certification from Singapore's health authority, marking a milestone in international product development [11][12] - Self-priced product revenue surged by 209.1%, becoming a core growth driver for the company [11][12] AI Integration and Innovation - Company has established a comprehensive AI service platform, enhancing diagnostic capabilities and operational efficiency [9][10] - AI applications are expected to generate significant revenue, with a focus on improving patient experience and reducing healthcare workload [9][10] - The integration of AI technology supports international expansion and enhances the value of self-priced products [13]

Core Viewpoint - The company, Gu Shengtang, reported strong mid-year results for 2025, showcasing significant growth in revenue and net profit, indicating improved operational efficiency and profitability [1][2][3]. Financial Performance - The company achieved a revenue of 1.49 billion RMB, a year-on-year increase of 9.5% [2]. - Net profit reached 151.95 million RMB, reflecting a substantial growth of 41.6% [2]. - EBITDA was approximately 270 million RMB, up 37.3% year-on-year [1][2]. - Operating cash flow surged to 300 million RMB, marking a 111% increase [3]. - Free cash flow increased dramatically by 466% to 210 million RMB [3]. - Cash reserves at the end of the period stood at 1.37 billion RMB, providing a solid foundation for strategic expansion [3]. Strategic Growth Drivers - The company is focusing on three strategic pillars: user trust and doctor resources, strong offline business growth, and global expansion [4]. - The user base and loyalty have increased, with outpatient visits exceeding 2.747 million, a 15.3% rise [5]. - Membership revenue contributed 620 million RMB, with a high retention rate of 85.8% [6]. - The offline business showed robust performance, with revenue from offline stores reaching 1.37 billion RMB, an 11.1% increase [7]. International Expansion and Innovation - The company is transitioning into a global TCM resource integration platform, with significant progress in internationalization, particularly in Singapore [8][11]. - The successful certification of its proprietary product "Hu Fa Yi Fa Granules" in Singapore marks a milestone in its international strategy [11][12]. - The AI application in TCM has been scaled, with ten specialized areas covered, enhancing the accessibility and efficiency of medical resources [9][10]. Product Development and Market Position - The company has increased its product pipeline, with 14 registered TCM formulations and plans for 10 more by the end of 2025 [12]. - The self-priced product segment saw a remarkable growth of 209.1%, becoming a core driver of revenue [11][12]. - The synergy between AI technology, international expansion, and proprietary products is creating a robust ecosystem, enhancing the company's valuation potential [13].

Core Viewpoint - The company Wen Zhi Traditional Chinese Medicine submitted a listing application to the Hong Kong Stock Exchange on July 29, with Haitong International as the sole sponsor. This follows a previous application submitted on January 9, 2025 [1]. Group 1 - Wen Zhi Traditional Chinese Medicine has officially applied for a listing on the Hong Kong Stock Exchange [1]. - Haitong International is acting as the sole sponsor for the listing application [1]. - The company had previously submitted a listing application on January 9, 2025 [1].