Gushengtang Holdings Limited (2273) AI Stock Analysis

• Market Cap: HK$8.41B
• Dividend Yield: 0.37%
• Average Volume (3M): 2.28M
• Price to Earnings (P/E): 25.9
• Beta (1Y): 1.33
• Revenue Growth: 28.02%
• EPS Growth: 19.41%
• Country: HK
• Employees: 2,915
• Sector: Healthcare
• Sector Strength: 53
• Industry: Medical - Care Facilities
• EPS (TTM): 1.38
• Shares Outstanding: 236,965,480
• 10 Day Avg. Volume: 2,559,031
• 30 Day Avg. Volume: 2,279,511
• PEG Ratio: 1.92
• Price to Book (P/B): 3.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 70.87
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$41.00
• Price Target Upside: 15.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 63 Neutral
• Price Target: ―

Gushengtang Holdings Limited demonstrates strong financial performance with significant revenue growth and robust profitability, supported by a solid balance sheet. However, technical analysis indicates bearish trends, which could pose short-term challenges. While the valuation is reasonable, it doesn't offer significant upside. The lack of recent earnings call or corporate events data limits additional insights. Overall, the stock is in a stable position but may face near-term pressures due to weak technical indicators.

Gushengtang Holdings Limited Business Overview & Revenue Model

Company Description

Gushengtang Holdings Limited, an investment holding company, provides healthcare services and sells healthcare products. It also engages in the wholesale and retail of pharmaceutical products; and provision of investment management and supply chain management services. The company was formerly known as Gushengtang (Cayman) Ltd. and changed its name to Gushengtang Holdings Limited in September 2021. The company was incorporated in 2014 and is headquartered in Guangzhou, China.

How the Company Makes Money

Gushengtang Holdings Limited generates revenue through a diversified business model centered on its healthcare service offerings. The company's primary revenue stream comes from the operation of its TCM clinics and healthcare centers, where it charges clients for various treatments such as consultations, herbal medicine prescriptions, acupuncture sessions, and other therapeutic services. Additionally, Gushengtang may engage in the sale of proprietary TCM products and health supplements. The company may also benefit from partnerships with healthcare providers and government health initiatives that promote the use of traditional medicine, contributing to its overall financial performance.

Gushengtang Holdings Limited Financial Statement Overview

Summary

Gushengtang Holdings Limited shows strong financial performance, particularly in revenue growth and profitability, with a robust balance sheet characterized by low leverage and high equity ratio. The income statement reveals effective cost management and operational efficiency, while the balance sheet underscores financial stability. However, the absence of recent cash flow data introduces some uncertainty, necessitating careful monitoring of cash operations.

Income Statement

The company's income statement shows a strong performance with significant revenue growth from 2023 to 2024, indicating a healthy expansion trajectory. The gross profit margin stands at approximately 30.1%, and the net profit margin is around 10.1%, reflecting effective cost management and profitability. EBIT and EBITDA margins are robust at 11.8% and 12.4%, respectively, showing operational efficiency. Overall, the income statement reflects strong growth and profitability trends.

Balance Sheet

Gushengtang Holdings has a solid balance sheet with a debt-to-equity ratio of 0.21, indicating low leverage risk. The equity ratio is a strong 65.0%, suggesting a stable capital structure with significant equity backing. Return on Equity (ROE) is also healthy at 12.9%, highlighting good returns for shareholders. However, the company should monitor its liabilities to ensure continued financial health. Overall, the balance sheet demonstrates financial stability with manageable leverage.

Cash Flow

The company's cash flow statement indicates some challenges. Operating cash flow is unavailable for the latest period, which complicates the evaluation of cash generation efficiency. Historical data shows positive free cash flow, with notable growth from 2022 to 2023. However, the absence of recent cash flow data presents a risk, requiring attention to ensure that cash operations remain strong. Overall, cash flow management appears positive, though more transparency is needed in recent periods.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.02B	2.32B	1.62B	1.37B	925.37M
	Gross Profit
909.35M	700.00M	499.54M	620.30M	437.49M
	EBIT
355.97M	278.90M	182.20M	-88.74M	96.92M
	EBITDA
375.05M	429.90M	324.22M	-62.75M	119.11M
	Net Income Common Stockholders
306.78M	252.20M	180.85M	-507.07M	-255.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.14B	1.33B	1.02B	1.03B	357.33M
	Total Assets
3.66B	3.38B	2.61B	2.39B	1.45B
	Total Debt
508.56M	370.57M	351.29M	345.37M	870.46M
	Net Debt
-607.88M	-930.73M	-643.04M	-685.34M	620.47M
	Total Liabilities
1.28B	1.07B	891.49M	842.39M	2.58B
	Stockholders Equity
2.38B	2.30B	1.72B	1.55B	-1.13B
Cash Flow		Free Cash Flow
0.00	332.41M	244.02M	138.03M	136.31M
	Operating Cash Flow
0.00	410.14M	281.00M	187.75M	154.90M
	Investing Cash Flow
0.00	-263.61M	-178.36M	-48.95M	-117.47M
	Financing Cash Flow
0.00	157.50M	-138.08M	638.57M	76.20M

Gushengtang Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 35.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2273, the sentiment is Neutral. The current price of 35.5 is below the 20-day moving average (MA) of 35.97, above the 50-day MA of 33.34, and above the 200-day MA of 34.74, indicating a neutral trend. The MACD of 0.63 indicates Positive momentum. The RSI at 46.76 is Neutral, neither overbought nor oversold. The STOCH value of 13.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2273.

Gushengtang Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2273	63 Neutral	HK$8.41B	25.94	13.13%	0.37%	28.02%	19.41%
Sector *	54 Neutral	$5.34B	3.36	-45.10%	3.39%	16.81%	-0.03%
CHJTF		$12.82B	19.73	13.20%	2.55%	―	―
CHKGF		$15.05B	8.64	3.52%	4.64%	―	―
640		€3.72B	8.25		3.08%	―	―
2877	75 Outperform	HK$5.99B	6.58	11.61%	9.71%	-18.09%	-15.08%

Gushengtang Holdings Limited Corporate Events

Gushengtang Holdings Reports 12.7% Increase in Q1 Customer Visits

Gushengtang Holdings Limited, a company incorporated in the Cayman Islands, reported a significant increase in customer visits for the first quarter of 2025. The company experienced a 12.7% growth in customer visits compared to the same period in 2024, reaching approximately 1,210,000 visits. This growth indicates a positive trend in the company’s operations, potentially enhancing its market position and stakeholder confidence.

Gushengtang Holdings Limited Reports Strong Financial Growth for 2024

Gushengtang Holdings Limited reported a significant financial growth for the year ended December 31, 2024, with a 30.1% increase in revenue to RMB3,022.4 million and a 31.4% rise in adjusted net profit to RMB400.4 million. This robust performance reflects the company’s strong market position and operational efficiency, highlighting its ability to generate substantial profit growth and maintain a competitive edge in the healthcare sector.

Gushengtang Holdings Declares Final Dividend for 2024

Gushengtang Holdings Limited has announced a final cash dividend of HKD 0.41 per share for the financial year ending December 31, 2024. The dividend will be paid on July 11, 2025, with a record date of June 30, 2025. This announcement reflects the company’s financial performance and commitment to providing returns to its shareholders, potentially impacting its market position and investor relations.

Gushengtang Holdings Announces Board Changes

Gushengtang Holdings Limited has announced a change in its board composition, effective March 31, 2025. Ms. Jin Xu has resigned from her role as an independent non-executive director and chairperson of the Remuneration Committee to focus on other business commitments. Ms. Wang Lan has been appointed to fill these roles, bringing over 20 years of experience in innovation, entrepreneurship, and corporate management consulting to the company. This change is expected to bring fresh perspectives to the board, potentially impacting the company’s strategic direction and governance.

Gushengtang Holdings Limited Announces Board Composition and Committee Assignments

Gushengtang Holdings Limited has announced the composition of its board of directors, detailing the roles and functions of each member. This includes the establishment of three committees: Audit, Remuneration, and Nomination, with specific directors assigned to each, which may enhance governance and operational oversight.