HK Stock Market Move | GUSHENGTANG (02273) further rises by nearly 6%, institutions say that the purchase of +AI+ in-house preparations is expected to contribute to an increase in performance.

GUSHENGTANG (02273) rose nearly 6% again, as of the time of writing, up 5.47% to HK$35.65, with a turnover of HK$40.7933 million. HAITONG INT'L pointed out that, according to the exchange meeting, GUSHENGTANG has signed equity transfer agreements with four domestic targets in the first quarter of 2025, including Wuhan Future Traditional Chinese Medicine Hospital, Changshu Guangren Hospital, Beijing Changping Bohua Jingkang Traditional Chinese Medicine Hospital, and Wuxi Tongkang Traditional Chinese Medicine Hospital. The average valuation of the contracted targets in 2025 has decreased to 0.8-1xPS, making it cost-effective. At the same time, the company plans to achieve acquisitions overseas with a revenue volume of 150-200 million yuan this year. The due diligence on some overseas targets has been completed; the company plans to launch the first batch of AI avatars of 10 top experts in the field of traditional Chinese medicine in July, covering departments such as dermatology, gynecology, and respiratory departments. It is currently in the data collection and internal testing phase; the company plans to add 10 in-house preparations in 2025, with expected in-house preparation revenue exceeding 50 million yuan. Huafu Securities previously mentioned that after the opening of the Chengdu branch, GUSHENGTANG has established over 80 branches in more than 20 cities nationwide and in Singapore, continuously expanding its business map. In addition, the company actively embraces AI, continues to increase investment in traditional Chinese medicine AI research and development, and plans to launch intelligent hardware devices and AI doctor assistants to enhance the auxiliary diagnosis and treatment capabilities in traditional Chinese medicine medical services, achieve more efficient diagnosis and treatment service processes, and provide more high-quality medical resources. At the same time, AI is expected to empower the company to achieve more refined customer service, continuously improve customer retention rates and per customer revenue.