Celebrities intensively increased their holdings, fully embracing the AI company GUSHENGTANG (02273), accelerating the discovery of value.

The AI medical industry is surging, and GUSHENGTANG (02273), the leading traditional Chinese medicine healthcare service provider at the forefront of this industry wave, has caught the attention of smart investors in the market. Recently, news that the popular mutual fund Ruixuan Fund is increasing its stake in GUSHENGTANG has attracted widespread attention. Public information shows that on February 26, Ruixuan Fund spent 15.8624 million Hong Kong dollars to increase its stake in GUSHENGTANG by 410,000 shares, bringing its total holding to 14.7183 million shares, with a stake of 6.04%. This comes just five days after Ruixuan Fund used over 25 million Hong Kong dollars to increase its stake in GUSHENGTANG by 753,400 shares. There are many institutions optimistic about GUSHENGTANG. As of the end of last year, funds heavily invested in GUSHENGTANG include Southern Fund, E Fund, Huaxia Fund, Guolian An Fund, Rich Country Fund, and Roborvit Fund, among others. GMTEight believes that GUSHENGTANG has a solid fundamental background and outstanding growth potential, which is why professional institutions advocating long-termism see the underlying logic in being bullish on GUSHENGTANG. At the same time, under the empowerment of AI, the traditional Chinese medicine healthcare service industry is embracing new development opportunities, and GUSHENGTANG is actively participating, which also enhances the company's attractiveness in the market. Just last month, GUSHENGTANG was successfully selected for the Goldman Sachs China AI Medical Index. With a clear foundation value and strong growth potential, GUSHENGTANG, which is highly sought after by institutions, has reached a point where its investment value needs to be reevaluated. Boldly taking the lead in the trend of AI in traditional Chinese medicine With the continuous evolution of AI technology, the application of AI in various fields is rapidly advancing, with the combination of AI and healthcare particularly striking. Industry data shows that the AI medical market in China is expected to reach approximately 97.3 billion yuan by 2023 and is expected to exceed 150 billion yuan by 2028, with a compound annual growth rate of double digits from 2022 to 2028. AI has great potential in the medical field, and traditional Chinese medicine is expected to become one of the most promising sub-sectors. In terms of scenarios, traditional Chinese medicine healthcare services can maximize the advantages of AI. It is well known that the core of traditional Chinese medicine is based on experience passed down through generations, with medical practitioners accumulating diagnosis and treatment logic through cases; and the essence of AI's machine learning is to extract patterns from data, both following the path of "input-pattern matching-output optimization." Furthermore, traditional Chinese medicine emphasizes "different treatments for the same disease" and "same treatment for different diseases," and its flexibility and individualized features are highly complementary to the technical characteristics of AI - AI's data processing and pattern recognition capabilities can amplify the personalized diagnosis and treatment advantages of traditional Chinese medicine, enhancing the efficiency of diagnosis and treatment. Realizing the prospects of the integration and development of traditional Chinese medicine with AI, GUSHENGTANG has always attached great importance to the application of cutting-edge technology. As early as 2019, GUSHENGTANG started in-depth exploration in the AI field. In 2023, GUSHENGTANG collaborated with Baidu to develop a large-scale model of traditional Chinese medicine and AI intelligent equipment; in the same year, GUSHENGTANG also collaborated with the Evidence-Based Medicine Center of West China Hospital of Sichuan University and Baidu to jointly create the "Traditional Chinese Medicine Large Model Clinical Evaluation and Intelligent Decision-Making Platform." In 2025, GUSHENGTANG accelerated its exploration in AI healthcare. Last month, GUSHENGTANG incorporated DeepSeek and began focusing on creating a "AI avatar" for famous doctors, allowing grassroots and young doctors to quickly grasp the diagnostic ideas of famous doctors and innovate based on their expertise, thus maximizing the inheritance and innovative development of the experiences of famous doctors and increasing the supply of high-quality medical resources to the fullest extent, enhancing the accessibility of high-level traditional Chinese medicine diagnostic and treatment services. Through the integration of DeepSeek and the creation of "AI avatars," GUSHENGTANG's leading advantage in the field of traditional Chinese medicine AI will continue to expand. Firstly, with GUSHENGTANG's massive and high-quality medical data continuously feeding AI, the evolution of the "AI avatar" of famous doctors can constantly improve, benefiting a wide range of patients, thereby enhancing the quality and efficiency of diagnosis and treatment. Data shows that in the first half of 2024, GUSHENGTANG had a total of 2.383 million clinic visits. With the widespread application of the "AI avatar" of famous doctors, GUSHENGTANG is expected to maximize the leverage effect of famous doctors. Additionally, in recent years, GUSHENGTANG's membership model has developed rapidly, and the high stickiness of members will provide great convenience for the rapid implementation and promotion of innovative products such as "AI avatars", indicating that the commercialization of the company's AI technology and related products in the next phase may continue to exceed expectations. Continued high demand for traditional Chinese medicine diagnosis and treatment benefits GUSHENGTANG In recent years, with the aging population, the increasing prevalence of chronic diseases, and the expansion of the sub-healthy population, traditional Chinese medicine has been highly valued for its ability to provide long-term and gentle healing solutions. In addition, the traditional Chinese medicine industry has benefited from multiple policy supports at the national level, leading to sustained high demand. Data shows that from 2018 to 2023, the total number of traditional Chinese medicine diagnosis and treatment visits in China increased from 1.07 billion to 1.54 billion, with a compound annual growth rate of 7.5% during the same period, exceeding the overall diagnostic and treatment visit growth rate of 2.8%. By 2023, the proportion of traditional Chinese medicine diagnosis and treatment visits nationwide (excluding village clinics) had increased to 18.8%. As the industry expands, GUSHENGTANG's performance has also seen high growth. From 2018 to 2023, the company's revenue increased from 726 million yuan to 2.323 billion yuan, and the adjusted net profit changed from negative to positive, reaching 305 million yuan in 2023. In the first half of 2024, GUSHENGTANG achieved revenue of 1.365 billion yuan and adjusted net profit of 148 million yuan, with year-on-year growth rates of 38.42% and 45.3%, respectively. While the demand for traditional Chinese medicine diagnosis and treatment continues to grow, from a supply perspective, social private medical institutions like GUSHENGTANG that have successfully replicated across regions are rare nationwide. There is a huge market gap waiting to be filled, indicating further opportunities for GUSHENGTANG to expand.Gushengtang has great potential in expanding internally and externally, and can make significant contributions to providing high-quality offerings to the market.Looking ahead, GUSHENGTANG has definite growth opportunities. Firstly, in 2023, there will be approximately 130,000-140,000 senior TCM doctors nationwide, with GUSHENGTANG's penetration rate among senior TCM doctors collaborating offline only at around 3%, leaving plenty of room for further growth. With the increase in collaboration with renowned doctors, the company can continue to expand through methods such as densifying in old cities, entering new cities, and relocating to larger locations, expanding its stores, cities, and area. Not to mention, as the company increases its investment in TCM AI technology, the future of GUSHENGTANG's intelligent diagnosis and treatment will accelerate, significantly enhancing the company's long-term competitiveness. With multiple short-term, medium-term, and long-term perspectives, this also explains why investment institutions are firmly increasing their holdings in GUSHENGTANG. For investors in the secondary market, the movements of institutional funds undoubtedly have high reference value, especially for those targets heavily favored by multiple star funds, which are worth paying special attention to and researching.