Gushengtang - H Key takeaways from May investor call: Singapore expansion and AI monetization are accelerating

Research evidence excerpt

Gushengtang - H Key takeaways from May investor call: Singapore expansion and AI monetization are accelerating

Asia Pacific Equity Research

18 May 2026

Overweight

Gushengtang - H 2273.HK, 2273 HK

Price: HK$28.82

Key takeaways from May investor call: Singapore 15 May 2026

expansion and AI monetization are accelerating Price Target: HK$41.00

PT End Date: 31 Dec 2026

Gushengtang held an investor call on Friday providing a comprehensive Healthcare

update on two growth engines that are increasingly important to the AC Eric Zhao, CFA

company: overseas expansion anchored in Singapore, and a multi-product (86-21) 6106 6256

AI business targeting doctors, patients, and healthcare institutions. eric.zhao@jpmorgan.com

Singapore store count already stands at 22 as of end-April 2026 and is SAC Registration Number: S1730524050001

tracking toward 50+ by year-end. The single-store profitability model has J.P. Morgan Securities (China) Company Limited

been validated with flagship store Bao Zhong Tang, delivering a net

margin above 30% in both March and April, which management cited as

the highest annualized revenue per square meter for any store globally in

the network, providing a replicable unit economics template for accelerated

rollout. On AI, the business generated Rmb10mn+ from the internal AI

health assistant product during Jan.-Apr. 2026, with the overseas version of

the TCM (traditional Chinese medicine) AI product crossing Rmb1mn in

monthly revenue within its first month of its launch in November 2025 and

continuing to grow sequentially. Full-year 2026 AI revenue guidance is set

at Rmb60mn-100mn. Malaysia is the next international market in the

pipeline, with management targeting approximately 10 clinic openings in