Sealand Securities Co.,Ltd. has released a research report maintaining a "Buy" rating for GUSHENGTANG (02273). The firm projects the company's operating revenue for 2025-2027 at RMB 3.4 billion, RMB 4.2 billion, and RMB 5.0 billion respectively, with net profit attributable to shareholders of RMB 430 million, RMB 544 million, and RMB 680 million respectively, corresponding to PE ratios of 16x, 13x, and 10x. Adjusted net profit is expected to reach RMB 470 million, RMB 569 million, and RMB 690 million respectively, representing year-over-year growth of 17%, 21%, and 21%. The company is a leading traditional Chinese medicine (TCM) healthcare services provider, developing National Medicine AI avatars and AI health assistants while steadily advancing AI-powered healthcare.

According to the report, GUSHENGTANG achieved revenue of RMB 1.495 billion in H1 2025 (+9.5% year-over-year), with net profit attributable to shareholders of RMB 152 million (+41.9%) and adjusted net profit of RMB 170 million (+15.2%). Patient visits in H1 2025 increased by 15.3% year-over-year. The company recorded 2.75 million patient visits in the first half of 2025, up 15.3% year-over-year, with average spending per visit at RMB 544. Profitability continued to improve, with H1 2025 gross margin reaching 30.63%, up 1.23 percentage points year-over-year, and adjusted net margin at 11.40%, up 0.56 percentage points year-over-year.

The research house noted that the company is developing National Medicine AI avatars and AI health assistants. As of August 2025, GUSHENGTANG has launched 10 major National Medicine AI avatars covering eight TCM specialty areas including oncology, dermatology, gastroenterology, otolaryngology, andrology, psychology and sleep medicine, classical prescriptions, and orthopedics and traumatology. Through AI technology empowerment of TCM, the company has increased the supply of high-quality TCM services. GUSHENGTANG has also launched AI health assistants to enhance patient treatment experience.

GUSHENGTANG maintains continuous high-ratio cash dividends and share buybacks. Dividends: The company announced an interim dividend of HK$0.35 per share for 2025, totaling HK$82.3 million. Buybacks: As of October 3, 2025, the company has repurchased a total of 5.19 million shares, representing approximately 2.18% of total share capital, with a buyback amount of HK$166 million. Continuity: In 2024, the company repurchased 7.62 million shares worth HK$279 million; the 2024 dividend per share including interim and final dividends was HK$0.54, totaling HK$129 million. This means the combined cash outflow for share buybacks and cash dividends in 2024 was HK$407 million. The company has continued its high-ratio cash dividend and share buyback policy in 2025.