Gushengtang Holdings Limited (2273) AI Stock Analysis

• Market Cap: HK$7.45B
• Dividend Yield: 2.61%
• Average Volume (3M): 1.54M
• Price to Earnings (P/E): 20.2
• Beta (1Y): 1.26
• Revenue Growth: 16.41%
• EPS Growth: 32.97%
• Country: HK
• Employees: 2,915
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.68
• Shares Outstanding: 234,371,050
• 10 Day Avg. Volume: 1,228,922
• 30 Day Avg. Volume: 1,539,754
• PEG Ratio: 1.38
• Price to Book (P/B): 3.36
• Price to Sales (P/S): 2.64
• P/FCF Ratio: 22.07
• 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$45.98
• Price Target Upside: 58.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: HK$32.00 ▲(10.34% Upside)

Gushengtang Holdings Limited has a solid financial foundation with strong revenue growth and profitability, contributing positively to the overall score. However, technical indicators suggest bearish trends, and the lack of recent cash flow data adds uncertainty. The valuation is fair, but not compelling. Overall, the stock presents a balanced risk-reward profile with potential for growth if cash flow transparency improves.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market reach and product demand, supporting long-term business sustainability and competitiveness.

Balance Sheet Health

Low leverage and high equity ratio suggest financial stability, providing the company with flexibility to invest in growth opportunities.

Profitability

Strong profit margins indicate effective cost management and operational efficiency, enhancing long-term profitability and shareholder value.

Negative Factors

Cash Flow Transparency

Lack of recent cash flow data adds uncertainty, potentially hindering accurate assessment of cash generation and financial health.

Cash Flow Challenges

Challenges in cash flow management could impact liquidity and limit the company's ability to fund operations or invest in growth.

Technical Indicators

Bearish technical indicators suggest potential investor caution, which may affect market perception and stock performance in the medium term.

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 primarily through the sale of its herbal products and health supplements. The company employs a multi-channel distribution strategy, selling its products through retail outlets, e-commerce platforms, and direct sales to consumers. Key revenue streams include direct-to-consumer sales, wholesale to pharmacies and health stores, and strategic partnerships with healthcare providers. Additionally, Gushengtang may benefit from collaborations with research institutions to develop new products, which can enhance its product portfolio and attract more customers. The growing demand for traditional Chinese medicine both domestically and internationally further supports its revenue generation.

Gushengtang Holdings Limited Financial Statement Overview

Summary

Gushengtang Holdings Limited shows strong financial performance with significant revenue growth and profitability. The balance sheet is robust with low leverage and high equity ratio, indicating financial stability. However, incomplete cash flow data adds 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.15B	3.02B	2.32B	1.62B	1.37B	925.37M
Gross Profit	965.99M	909.35M	700.00M	499.54M	620.30M	437.49M
EBITDA	444.57M	375.05M	429.90M	324.22M	-62.75M	119.11M
Net Income	351.56M	306.78M	252.20M	180.85M	-507.07M	-255.75M
Balance Sheet
Total Assets	3.89B	3.66B	3.38B	2.61B	2.39B	1.45B
Cash, Cash Equivalents and Short-Term Investments	1.24B	1.14B	1.33B	1.02B	1.03B	357.33M
Total Debt	639.75M	508.56M	370.57M	351.29M	345.37M	870.46M
Total Liabilities	1.51B	1.28B	1.07B	891.49M	842.39M	2.58B
Stockholders Equity	2.38B	2.38B	2.30B	1.72B	1.55B	-1.13B
Cash Flow
Free Cash Flow	507.38M	361.77M	332.41M	244.02M	138.03M	136.31M
Operating Cash Flow	607.89M	452.37M	410.14M	281.00M	187.75M	154.90M
Investing Cash Flow	-407.45M	-267.37M	-263.61M	-178.36M	-48.95M	-117.47M
Financing Cash Flow	-213.70M	-375.19M	157.50M	-138.08M	638.57M	76.20M

Gushengtang Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 29 is below the 20-day moving average (MA) of 29.69, below the 50-day MA of 29.39, and below the 200-day MA of 31.89, indicating a neutral trend. The MACD of 0.65 indicates Negative momentum. The RSI at 68.57 is Neutral, neither overbought nor oversold. The STOCH value of 84.68 is Negative, 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
3689	71 Outperform	HK$601.91M	7.29	5.33%	9.14%	0.47%	50.46%
2273	66 Neutral	HK$7.45B	20.16	14.86%	2.61%	16.41%	32.97%
1526	66 Neutral	HK$1.57B	5.42	20.47%	4.37%	-3.56%	-17.45%
2373	66 Neutral	HK$6.65B	21.23	31.23%	1.97%	28.53%	22.34%
6078	62 Neutral	HK$8.40B	17.08	6.78%	―	-13.92%	-36.32%
3886	52 Neutral	HK$1.65B	-11.46	-4.66%	0.49%	-0.55%	45.36%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Gushengtang Holdings Limited Corporate Events

Gushengtang Expands TCM Services with DA ZHONG TANG Acquisition

Gushengtang Holdings Limited announced the acquisition of DA ZHONG TANG, a Singapore-based company providing traditional Chinese medicine services and pharmaceutical retail. This acquisition aligns with Gushengtang’s strategy to expand its offline medical network and enhance market share in Singapore, while creating synergies with its existing healthcare platforms.

The most recent analyst rating on (HK:2273) stock is a Buy with a HK$46.00 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 Share Repurchase to Boost Shareholder Value

Gushengtang Holdings Limited has announced a voluntary share repurchase initiative under a previously granted mandate, allowing the company to buy back up to 10% of its issued shares. The board has approved an additional HK$300 million for the repurchase, which aims to enhance shareholder value and demonstrate confidence in the company’s long-term prospects, while maintaining sufficient financial resources for ongoing business growth.

The most recent analyst rating on (HK:2273) stock is a Hold with a HK$30.00 price target. To see the full list of analyst forecasts on Gushengtang Holdings Limited stock, see the HK:2273 Stock Forecast page.