The research report "Big Banks" raises the target price of GUSHENGTANG to 42 yuan and continues to recommend buying

HSBC's research report indicates that despite facing macroeconomic pressures, GUSHENGTANG (02273.HK) still achieved a year-on-year revenue growth of 10% in the first half of the year, with net profit also increasing by 42% year-on-year. The net profit met expectations, but revenue was slightly below the bank's forecast, as it previously underestimated the impact of weak consumption on average selling prices while overestimating the revenue contributions from overseas expansion and artificial intelligence development.

The bank has lowered its revenue forecasts for 2025 to 2027 by 8% to 11% and its earnings per share forecasts by 1% to 3%, but remains optimistic about the improvement in profitability from new clinics and the positive effects of ongoing operational efficiency improvements. At the same time, the bank believes that short-term negative factors have largely been digested by the market, and maintains its forecast of a 21% growth in earnings per share for 2026, driven by strong organic growth and network expansion; the target price has been raised from 40 yuan to 42 yuan, maintaining a "Buy" rating