Risk Reward Update: Gushengtang Holdings Ltd | Asia Pacific

研报英文原文证据摘录

Risk Reward Update: Gushengtang Holdings Ltd | Asia Pacific

UpdateM

RiskRisk RewardReward– Gushengtang- GushengtangHoldings Ltd (2273.HK)Holdings Ltd (2273.HK)

Leading TCM service operator, with distinctive model and widening moat

PRICE TARGET HK$37.50 OVERWEIGHT THESIS

We use a discounted cash flow methodology assuming a WACC of 10%, largely in line with ▪China's leading TCM medical services

other China healthcare service companies under our coverage, and a terminal growth rate of provider with a nationwide footprint, having

3%, typical for our coverage. Our model starts from 2026. scarcity value and proven scalability.

TCM physician model to attract HK$42.03 ▪Network

senior TCM physicians with increasing

Consensus Price Target Distribution HK$28.25 HK$67.26 contribution from self-employed physicians MS PT

to drive operating leverage over time.Source: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates

▪Near-term expansion driven by same-city

penetration and new geographic region

entries, including overseas markets.

RISK REWARD CHART ▪Integration of AI infrastructure with its

proprietary database may substantially

HKD enhance physician productivity over time.

▪Valuation above HK-listed peers yet still

HK$58.00HK$58.00(+95.15%)HK$58.00(+95.15%)(+95.15%) undemanding against growth profile.

Consensus Rating Distribution

45 95% Overweight

HK$37.50HK$37.50(+26.18%)HK$37.50(+26.18%)(+26.18%) 0% Equal-weight

5% Underweight 30 HK$29.72HK$29.72HK$29.72

MS Rating

Source: Refinitiv, Morgan Stanley Research

HK$17.50HK$17.50(-41.12%)HK$17.50(-41.12%)(-41.12%)

Risk Reward Themes

JUL '25 JAN '26 JUL '26 JUL '27 Pricing Power: Negative

Secular Growth: Positive

Key: Historical Stock Performance Current Stock Price Price Target Self-help: Positive