Morgan Stanley lowers the target price for Gushengtang to HKD 48, maintaining an overweight rating.

Jin10 data reported on July 14 that Morgan Stanley released a research report indicating that it expects Guoshengtang (02273.HK) to have a mid-term revenue rise of about 17%, with adjusted net profit increasing by over 20%. The rapid offline growth is partially offset by slower online expansion. For the full year of 2025, Morgan Stanley raised its earnings per share estimate for Guoshengtang by 4%, expecting that the contribution from artificial intelligence revenue will offset the impact of related investments, resulting in an adjusted net profit of 480 million RMB for the year. At the same time, due to macroeconomic downturns and reimbursement pressures in some regions, the earnings per share estimates for 2026 and 2027 were lowered by 9% and 11%, respectively, with expected revenue and profit growth rates of high double-digit percentages and about 20%. The target price was lowered by 13%, from 55 HKD to 48 HKD, maintaining a buy rating.