Gushengtang Holdings Limited (2273) AI Stock Analysis

• Market Cap: HK$8.10B
• Dividend Yield: 2.41%
• Average Volume (3M): 1.82M
• Price to Earnings (P/E): 25.0
• Beta (1Y): 1.33
• Revenue Growth: 28.02%
• EPS Growth: 19.41%
• Country: HK
• Employees: 2,915
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Care Facilities
• EPS (TTM): 1.38
• Shares Outstanding: 236,409,090
• 10 Day Avg. Volume: 1,031,732
• 30 Day Avg. Volume: 1,816,096
• PEG Ratio: 1.98
• Price to Book (P/B): 3.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 72.13
• 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$42.00
• Price Target Upside: 23.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• 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 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
EBITDA	375.05M	429.90M	324.22M	-62.75M	119.11M
Net Income	306.78M	252.20M	180.85M	-507.07M	-255.75M
Balance Sheet
Total Assets	3.66B	3.38B	2.61B	2.39B	1.45B
Cash, Cash Equivalents and Short-Term Investments	1.14B	1.33B	1.02B	1.03B	357.33M
Total Debt	508.56M	370.57M	351.29M	345.37M	870.46M
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	361.77M	332.41M	244.02M	138.03M	136.31M
Operating Cash Flow	452.37M	410.14M	281.00M	187.75M	154.90M
Investing Cash Flow	-267.37M	-263.61M	-178.36M	-48.95M	-117.47M
Financing Cash Flow	-375.19M	157.50M	-138.08M	638.57M	76.20M

Gushengtang Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2373	76 Outperform	HK$6.83B	26.93	26.24%	1.63%	17.69%	5.37%
6078	70 Outperform	HK$9.22B	14.70	9.30%	―	7.28%	-13.77%
2273	70 Outperform	HK$8.10B	25.02	13.13%	2.41%	28.02%	19.41%
1526	69 Neutral	HK$1.75B	5.43	24.13%	4.09%	-3.85%	-19.28%
3689	66 Neutral	HK$601.91M	36.22	1.07%	8.89%	-1.20%	-87.51%
3886	61 Neutral	HK$1.60B	―	-6.55%	0.51%	0.04%	-4.88%
Sector *	52 Neutral	$7.49B	0.22	-61.87%	2.28%	16.62%	1.08%

Gushengtang Holdings Limited Corporate Events

Gushengtang Holdings Limited AGM Resolutions Passed with Unanimous Support

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

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

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

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

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

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.