Gushengtang Holdings (2273.HK): Domestic consolidation and overseas expansion gaining traction; shareholder returns remain a priority

Research evidence excerpt

Gushengtang Holdings (2273.HK): Domestic consolidation and overseas expansion gaining traction; shareholder returns remain a priority

Equity Research

7 July 2026 | 1:43PM HKT

Gushengtang Holdings (2273.HK): Domestic consolidation and overseas

expansion gaining traction; shareholder returns remain a priority

Management hosted an operational update call this morning, highlighting the Chris Pan, CFA

+852-2978-7993 | chris.pan@gs.com

continued acceleration of both domestic consolidation and overseas expansion, Goldman Sachs (Asia) L.L.C.

while reiterating its commitment to shareholder returns and a dual-track growth Ziyi Chen

strategy combining organic expansion and M&A. Management believes the current +852-2978-0526Goldman Sachs (Asia)| ziyi.chen@gs.comL.L.C.

industry consolidation cycle continues to present an attractive opportunity to

expand market share through acquisitions, supported by compressing transaction

multiples and the company’s strong cash flow.

Domestically, the recently acquired Beijing (see the disclosure here) and Tianjin (see

the disclosure here) clinics together contribute c.Rmb110mn of annual revenue and

were acquired at valuations of c.7x P/E and below 0.8x P/S, with a current margin of

c.10%. Per management, the clinic acquired in Tianjin last year has delivered strong

growth, with revenue nearly doubling y/y on a pro-forma basis in 1H26, underscoring

robust regional demand and Gushengtang’s brand equity. Management expects the

acquisitions to further strengthen Gushengtang’s leading position in the

Beijing-Tianjin region, deepen its clinic network density, and unlock greater

operational synergies. Looking ahead into 2H26, management highlighted an active

M&A pipeline across Beijing, Shanghai, Guangdong, and Central China, including