HK Stock Market Move | GUSHENGTANG (02273) rose by more than 4%, the impact of the joint procurement of Chinese herbal medicine slices on the overall gross profit margin is weak. Under stricter regulations, the company is expected to form a virtuous cycle.

GUSHENGTANG (02273) rose over 4%, as of the time of writing, it has increased by 4.4% to HKD 29.65, with a turnover of HKD 23.386 million. HAITONG INT'L released a research report stating that GUSHENGTANG held a recent situation public exchange conference call. The company expects that the impact of the joint procurement of herbal pieces on the group's overall gross margin will be minimal. The company also stated that in 2025, it plans to implement three important strategies: upgrading the membership system to health insurance products, entering the commercial insurance market through the acquisition of insurance brokerage companies, implementing a comprehensive partner plan after the Chinese New Year, and establishing a certain scale of operations in overseas countries. In addition, the company plans to re-enter the overall medical insurance system by laying out secondary hospitals in 2025, and aims for a 25% increase in revenue in the Shenzhen region in 2025, mainly through new user growth plans. Huaan previously pointed out that as medical insurance management becomes stricter, the rectification, penalties, and closures of non-compliant stores vary. The bank believes that in a compliant medical environment, patients will choose large chain medical service groups with high brand awareness, high-quality services, strict management, and reasonable fees. The company is expected to attract more patients for treatment and more quality doctors to join, forming a virtuous cycle with its efficient and legal operational management capabilities.