Gushengtang Holdings: Further progress in M&A expansion and shareholder return

Research evidence excerpt

Gushengtang Holdings: Further progress in M&A expansion and shareholder return

Global Research

9 July 2026ab

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EquitiesGushengtang Holdings

Further progress in M&A expansion and China

shareholder return Healthcare Providers

12-month rating Buy

12m price target HK$42.70

Ongoing execution of this year's accelerated expansion strategy

Gushengtang (GST) recently announced several domestic M&A deals, including 2

hospitals in Beijing and 1 clinic in Tianjin. Acquisition multiples remain attractive at Price (08 Jul 2026) HK$29.42

c0.7x-0.8x P/S in our view, with the announced deals potentially contributing low- RIC: 2273.HK BBG: 2273 HK

single-digit percentage revenue growth in H226 based on our estimates. Management

Trading data and key metrics

expects to further consolidate regional leaders in key domestic markets, with potentially

further deal announcements in the coming months. We see potential for upside to 52-wk range HK$37.30-25.14

management's 15% revenue growth target this year, which did not consider potential Market cap. HK$6.90b/US$0.88b

contributions from domestic acquisitions. Meanwhile, GST accelerated its expansion in Shares o/s 234m (ORD)

Singapore, adding two greenfield clinics and two acquired clinics over the past month; Free float 64%

total store count in Singapore rose to 26 from 15 at year beginning, on track with Avg. daily volume ('000) 1,240

management's target of 30-50 stores by year-end. Per management, revenue from Avg. daily value (m) HK$34.9

Singapore grew over 40% in H126 on a comparable basis (assuming acquired stores Common s/h equity (12/26E) Rmb2.42b

were consolidated at year-start in 2025). P/BV (12/26E) 2.5x

Net debt to EBITDA (12/26E) 0.1x

Ample buyback capacity; supportive policies underpin industry growth and