Investment Rating - The report maintains a "Buy" rating for Gushengtang (2273 HK) with a target price of HK28.55 [3][9][19]. Core Insights - Gushengtang has shown robust growth in its healthcare solutions, with total revenue for 2024 reaching RMB 3.022 billion, a year-on-year increase of 30.1%, and net profit of RMB 307 million, up 21.4% [7][13]. - The company is expanding its international presence, having entered the Singapore market, which contributed RMB 31.52 million to its revenue [8]. - The report projects revenue and net profit growth rates for 2025E-2027E at 26%/23%/19% and 26%/24%/18%, respectively [7][15]. Financial Summary - Revenue for 2025E is projected at RMB 3.819 billion, with a gross profit of RMB 1.150 billion and a net profit of RMB 386 million [13][24]. - The earnings per share (EPS) for 2025E is estimated at RMB 1.61, with a P/E ratio of 16.1, which is lower than the industry average of 27x [3][19][21]. - The company’s gross margin is expected to remain stable at around 30% to 31% through 2027E [8][19]. Adjustments and Forecasts - The target price has been adjusted down from HK61.84, reflecting a 16% decrease due to revised earnings forecasts [3][19]. - The report has lowered the 2025E and 2026E EPS estimates by 19% and 24%, respectively, due to anticipated costs associated with digital transformation and expansion efforts [15][17]. Valuation - The DCF valuation method indicates a target price of HK$61.84, corresponding to a P/E of 35x for 2025, suggesting a premium valuation due to the company's unique position in the TCM service market [19][20].
固生堂（02273）：数字化与AI赋能公司业务长期增长