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Gushengtang Holdings Limited (HK:2273)
:2273
Hong Kong Market

Gushengtang Holdings Limited (2273) AI Stock Analysis

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HK

Gushengtang Holdings Limited

(2273)

Rating:70Outperform
Price Target:
HK$37.00
▲(8.66%Upside)
The overall stock score of 66.7 reflects strong financial performance driven by revenue growth and profitability, balanced by technical indicators suggesting potential weakness and valuation concerns due to a high P/E ratio. The absence of complete cash flow data and earnings call insights adds uncertainty. The company is in a solid position but faces challenges in valuation and transparency.

Gushengtang Holdings Limited (2273) vs. iShares MSCI Hong Kong ETF (EWH)

Gushengtang Holdings Limited Business Overview & Revenue Model

Company DescriptionGushengtang 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 MoneyGushengtang 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
85
Very Positive
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
78
Positive
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.02B2.32B1.62B1.37B925.37M
Gross Profit909.35M700.00M499.54M620.30M437.49M
EBITDA375.05M429.90M324.22M-62.75M119.11M
Net Income306.78M252.20M180.85M-507.07M-255.75M
Balance Sheet
Total Assets3.66B3.38B2.61B2.39B1.45B
Cash, Cash Equivalents and Short-Term Investments1.14B1.33B1.02B1.03B357.33M
Total Debt508.56M370.57M351.29M345.37M870.46M
Total Liabilities1.28B1.07B891.49M842.39M2.58B
Stockholders Equity2.38B2.30B1.72B1.55B-1.13B
Cash Flow
Free Cash Flow361.77M332.41M244.02M138.03M136.31M
Operating Cash Flow452.37M410.14M281.00M187.75M154.90M
Investing Cash Flow-267.37M-263.61M-178.36M-48.95M-117.47M
Financing Cash Flow-375.19M157.50M-138.08M638.57M76.20M

Gushengtang Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price34.05
Price Trends
50DMA
34.07
Positive
100DMA
34.12
Positive
200DMA
34.11
Positive
Market Momentum
MACD
-0.04
Positive
RSI
54.43
Neutral
STOCH
48.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2273, the sentiment is Positive. The current price of 34.05 is below the 20-day moving average (MA) of 34.37, below the 50-day MA of 34.07, and below the 200-day MA of 34.11, indicating a bullish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 54.43 is Neutral, neither overbought nor oversold. The STOCH value of 48.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2273.

Gushengtang Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
HK$6.83B26.9326.24%1.63%17.69%5.37%
70
Outperform
HK$9.22B14.709.30%7.28%-13.77%
70
Outperform
HK$8.10B25.0213.13%2.41%28.02%19.41%
69
Neutral
HK$1.75B5.4324.13%4.09%-3.85%-19.28%
66
Neutral
HK$601.91M36.221.07%8.89%-1.20%-87.51%
61
Neutral
HK$1.60B-6.55%0.51%0.04%-4.88%
52
Neutral
$7.49B0.22-61.87%2.28%16.62%1.08%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2273
Gushengtang Holdings Limited
34.95
-0.14
-0.40%
HK:1526
Rici Healthcare Holdings Ltd.
1.08
-0.09
-7.69%
HK:2373
Beauty Farm Medical & Health Industry, Inc.
28.70
13.06
83.50%
HK:3689
Guangdong Kanghua Healthcare Co., Ltd. Class H
1.85
-0.53
-22.27%
HK:3886
Town Health International Medical Group Ltd.
0.24
-0.05
-17.24%
HK:6078
Hygeia Healthcare Holdings Co., Ltd.
15.30
-10.80
-41.38%

Gushengtang Holdings Limited Corporate Events

Gushengtang Holdings Limited AGM Resolutions Passed with Unanimous Support
Jun 20, 2025

Gushengtang Holdings Limited announced the successful passing of all proposed resolutions during its Annual General Meeting held on June 20, 2025. The resolutions included the adoption of the audited financial statements for the year ended December 31, 2024, the re-election of certain directors, and the declaration of a final dividend of HK$0.41 per share. The meeting saw full participation from shareholders, with no abstentions or votes against the resolutions, indicating strong shareholder support and confidence in the company’s governance and future plans.

The most recent analyst rating on (HK:2273) stock is a Buy with a HK$65.00 price target. To see the full list of analyst forecasts on Gushengtang Holdings Limited stock, see the HK:2273 Stock Forecast page.

Gushengtang Holdings Limited Announces Board Composition and Committee Assignments
Jun 20, 2025

Gushengtang Holdings Limited has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The company has also established three committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, with specific directors assigned to each. This announcement provides clarity on the governance structure of the company, potentially impacting its decision-making processes and strategic direction.

The most recent analyst rating on (HK:2273) stock is a Buy with a HK$65.00 price target. To see the full list of analyst forecasts on Gushengtang Holdings Limited stock, see the HK:2273 Stock Forecast page.

Gushengtang Holdings Announces Capital Contribution Agreement with Tu Health Care
Jun 10, 2025

Gushengtang Holdings Limited, through its wholly-owned subsidiary Gushengtang Singapore, has entered into a Share Subscription Agreement with Tu Health Care. Under this agreement, Tu Health Care will make a capital contribution of SGD1.6 million, resulting in Gushengtang Singapore being owned approximately 83.16% by Gushengtang Holdings and 16.84% by Tu Health Care. This transaction is classified as a connected transaction under Hong Kong’s Listing Rules, due to the relationship between Mr. Tu, a key executive of Gushengtang Holdings, and Tu Health Care.

The most recent analyst rating on (HK:2273) stock is a Buy with a HK$65.00 price target. To see the full list of analyst forecasts on Gushengtang Holdings Limited stock, see the HK:2273 Stock Forecast page.

Gushengtang Holdings Announces 2025 Annual General Meeting Agenda
May 28, 2025

Gushengtang Holdings Limited has announced its upcoming annual general meeting scheduled for June 20, 2025, in Guangzhou, PRC. Key agenda items include the adoption of the 2024 financial statements, re-election of directors, declaration of a final dividend of HK$0.41 per share, and re-appointment of Ernst & Young as auditors. The meeting will also consider resolutions to authorize the board to allot and issue additional shares, enhancing the company’s operational flexibility and potential for growth.

The most recent analyst rating on (HK:2273) stock is a Buy with a HK$65.00 price target. To see the full list of analyst forecasts on Gushengtang Holdings Limited stock, see the HK:2273 Stock Forecast page.

Gushengtang Holdings Announces Non-Executive Director’s Retirement
May 23, 2025

Gushengtang Holdings Limited, a company incorporated in the Cayman Islands, announced the retirement of Mr. Gao Jian, a non-executive director, who will not seek re-election at the upcoming annual general meeting on June 20, 2025. Mr. Gao is stepping down to focus on other business commitments, and his departure is amicable, with no disagreements with the board. The company expressed gratitude for his contributions during his tenure.

The most recent analyst rating on (HK:2273) stock is a Buy with a HK$42.00 price target. To see the full list of analyst forecasts on Gushengtang Holdings Limited stock, see the HK:2273 Stock Forecast page.

Gushengtang Holdings Reports 12.7% Increase in Q1 Customer Visits
Apr 30, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 09, 2025