Jinwu Financial News | Guojin Securities released a research report stating that Gushengtang (02273) announced its annual results for the year 23. In 2023, the company achieved revenue of 2,323 billion yuan (+43% YoY), adjusted net profit of 305 million yuan (YoY +54%), and net profit of 252 million yuan (YoY +39%); in split terms, 2023H2 achieved revenue of 1,337 million yuan (+45% YoY), adjusted net profit of 203 million yuan (+49%), and net profit of 159 million yuan (YoY +25%).
According to the bank, in 2023, the revenue of the company's offline medical institutions was 2,037 billion yuan (+49% year-on-year), and the revenue of offline medical institutions increased rapidly, mainly driven by the company's new acquisitions and existing offline business. On the customer side, in 2023, the number of visits to the company's customers was 4.297 million, with 804,000 new customers (+46% over the same period). The company's customer base grew steadily and the customer return rate further increased, laying the foundation for performance growth.
According to the bank, as of the end of 2023, the company had a total of 56 medical institutions (an increase of 8 over the previous year), covering 16 cities (newly covering Kunshan and Wuhan). Through the acquisition, the company further expanded its offline medical service network and market share in East China and Central China.
The bank predicts that the company is a leader in traditional Chinese medicine services. It is optimistic that its scale effect will gradually be released, profitability will improve, and long-term development prospects can be expected. In 2024-2026, the company's net profit to mother was 336/4.45/583 million yuan, respectively, an increase of 33% over the previous year.