Goldman Sachs: Gushengtang (2273.HK) 1H26 Results Review — Resilient Patient Traffic; Overseas Expansion and Shareholder Returns on Track
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Goldman Sachs reiterates its Buy on Gushengtang (2273.HK) and raises the 12-month target price from HK$36.5 to HK$37.2, implying 27.8% upside from HK$29.10, on an unchanged 18x forward P/E. First-half 2026 revenue rose 10.6% year on year to Rmb1.65bn, broadly in line, on around 3.16 million patient visits (+15.1%); offline visits gained 17.5% and same-store organic growth reached 12.9%. The 3.9% ASP decline was structural, reflecting rapid volume in lower-ticket consumer health services, while specialty medical ASP rose 2.4% excluding mix. Reported net profit climbed 45.5% to Rmb221mn, including roughly Rmb55mn of post-tax convertible-related fair-value gains; adjusted net profit rose 10.0%.
The company added 18 clinics in 1H26 and signed 18 more for 2H26 consolidation, with more meaningful revenue contribution from 2027. Shareholder returns are on track: at least HK$450mn of 2026 dividends, a 60% payout floor over three years and a roughly 7% trailing yield. Overseas expansion is validating — Singapore reached 26 clinics with Dazhongtang revenue up 20% at an ~18% margin, four Hong Kong clinics opened in August and Malaysia's YC TCM was acquired. Goldman lifted 2026E net profit 8.1% and trimmed 2027-28E marginally.