The bank mentioned that Gushengtang's business layout continued to expand last year. As of 2023/12/31, the company owns and operates 56 medical institutions, covering 16 cities. During the reporting period, the company acquired 7 offline institutions and built 2 offline institutions of its own; on the online side, the company has now established cooperative relationships with various third-party online platforms.
The Zhitong Finance App learned that Huafu Securities released a research report stating that the “buy” rating from Gushengtang (02273) was adjusted to the 2024/25 net profit forecast of 3.67 billion yuan and 479 million yuan (originally $3.59 million and 463 million yuan), adding 593 million yuan in net profit to mother in 2026, considering differences in business models and growth between the company and comparable companies, and given a certain valuation premium, with a target price of HK$5.788.
The report cites the company's 2023 annual report. During the period, it achieved revenue of 2,323 million yuan (+43%), net profit to mother of 253 million yuan (+39.6%), and adjusted net profit of 305 million yuan (+53.6%). The performance was in line with previous expectations and achieved rapid overall growth. Among them, offline medical institutions achieved revenue of 2,037 billion yuan (+49.2%), mainly contributing to the business growth of newly acquired institutions and existing institutions; online institutions achieved revenue of 286 million yuan (+10.2%), and the increase was mainly due to an increase in the number of patients treated. During the period, the company achieved 4.297 million visits, an increase of 45.91% over the previous year, and achieved a customer unit price of 541 yuan, which was basically the same as the previous year. The customer return rate increased from 64% in 2022 to 65.2% in 2023
In terms of financial data, in 2023, the company's sales expense ratio, management expense ratio, and financial expense ratio were 12.11%, 6.66%, and 1.10%, respectively, with year-on-year changes of -0.65pct, -0.49pct, and +0.02pct, achieving a gross profit margin of 30.13% (-0.62pct), and an adjusted net profit margin of 13.13% (+0.09pct). In addition, the company's other revenue in 2023 included government subsidies ($15 million) and net exchange differences ($0.13 billion).
The bank mentioned that Gushengtang's business layout continued to expand last year. As of 2023/12/31, the company owns and operates 56 medical institutions, covering 16 cities. During the reporting period, the company acquired 7 offline institutions and built 2 offline institutions of its own; on the online side, the company has now established cooperative relationships with various third-party online platforms.