Gushengtang - H: Expansion across domestic and overseas markets on track; we expect solid top-line growth in 1H26

Research evidence excerpt

Gushengtang - H: Expansion across domestic and overseas markets on track; we expect solid top-line growth in 1H26

Asia Pacific Equity Research

07 July 2026

Overweight

Gushengtang - H 2273.HK, 2273 HK

Price: HK$30.80

Expansion across domestic and overseas markets on 07 Jul 2026

track; we expect solid top-line growth in 1H26 Price Target: HK$41.00

PT End Date: 31 Dec 2026

Recently, Gushengtang announced several new acquisitions, including Healthcare

Tianjin Bainian Renyitang in June 2026, followed by two Beijing AC Eric Zhao, CFA

hospitals, Shahe Traditional Chinese and Western Medicine Hospital and (86-21) 6106 6256

Hongyang Chinese Medicine Hospital, on July 5, besides entering the eric.zhao@jpmorgan.com

Jinan market via three medical institutions. These moves continue to SAC Registration Number: S1730524050001

densify its clinic network in Beijing and Tianjin and unlock regional J.P. Morgan Securities (China) Company Limited

synergies. Internationally, Gushengtang rapidly established four new

clinics in Singapore within a month, including the acquisition of the two-

store Sante TCM, bringing its total Singapore footprint to 26 clinics as of

July 2026. This overseas segment posted a YoY revenue growth exceeding

40% in 1H26 on an apples-to-apples basis, with concrete plans to officially

enter Malaysia and Hong Kong in the coming months. Backed by both

organic growth and external expansion, we expect Gushengtang to deliver

solid 1H26 top-line growth of ~15% YoY.

• A deeper look at the company’s recent M&A activity reveals

favorable deal structures and cost-effectiveness. Gushengtang’s

average acquisition multiple has dropped by nearly 50% to a Price-to-

Sales (P/S) ratio of around 0.8x, compared to ~1.5x in previous years.