DSL(SH:603233) Xin Lang Cai Jing·2025-04-29 02:40Core Viewpoint - The company reported a mixed performance in its 2024 annual report and 2025 Q1 report, with revenue growth but a decline in net profit for 2024, while Q1 2025 showed signs of recovery in net profit due to cost reduction and efficiency improvements [1][2]. Group 1: Financial Performance - In 2024, the company achieved revenue of 26.497 billion yuan and a net profit of 915 million yuan, representing a year-on-year growth of 8.01% in revenue but a decline of 21.58% in net profit [1][2]. - For Q1 2025, the company reported revenue of 6.956 billion yuan and a net profit of 460 million yuan, with revenue growth of 3.02% and a significant net profit increase of 15.45% year-on-year [1][2]. Group 2: Segment Performance - In 2024, the revenue breakdown showed that traditional Chinese and Western medicine generated 19.968 billion yuan (+12.82%), while Chinese medicinal materials and non-pharmaceuticals generated 2.945 billion yuan (-0.99%) and 2.948 billion yuan (-9.52%) respectively [2]. - For Q1 2025, the revenue from traditional Chinese and Western medicine was 5.324 billion yuan (+5.80%), while Chinese medicinal materials and non-pharmaceuticals generated 714 million yuan (-9.38%) and 709 million yuan (-8.04%) respectively [2]. Group 3: Operational Efficiency - The company has optimized its store operations and implemented cost reduction measures, leading to improved performance. As of Q1 2025, the company operated 16,622 stores, with 54 new self-built stores, 189 new franchise stores, and 174 closures [3]. - The company’s expense ratio decreased by 1.28 percentage points year-on-year in Q1 2025, indicating effective cost control and efficiency improvements [3]. Group 4: Investment Outlook - The company is projected to achieve net profits of 1.063 billion yuan, 1.197 billion yuan, and 1.349 billion yuan for the years 2025 to 2027, reflecting year-on-year growth rates of 16.2%, 12.7%, and 12.7% respectively [4]. - For 2025, the company is assigned a price-to-earnings ratio of 25, with an expected earnings per share of 0.93 yuan, leading to a target price of 23.25 yuan per share, and a buy-A investment rating is recommended [4].