DSL(SH:603233) Xin Lang Cai Jing·2025-05-02 06:31Core Viewpoint - The company reported a mixed financial performance for 2024, with revenue growth but a decline in net profit, while the first quarter of 2025 shows signs of recovery in profitability [1][2][4]. Financial Performance Summary - For 2024, the company achieved a revenue of 26.497 billion yuan, with a net profit of 915 million yuan, reflecting year-on-year changes of +8.01% for revenue, -21.58% for net profit, and -22.42% for net profit excluding non-recurring items [1]. - In Q4 2024, revenue was 6.766 billion yuan, with a net profit of 57 million yuan, showing a year-on-year revenue decline of -0.63%, but significant increases in net profit of +820.48% and +240.71% for net profit excluding non-recurring items [1]. - For Q1 2025, revenue reached 6.956 billion yuan, with a net profit of 460 million yuan, indicating year-on-year growth of +3.02% for revenue and +15.45% for net profit [1]. Operational Strategy Summary - The company closed 733 stores in 2024 to optimize its store network, which is expected to improve profitability in the long run despite short-term revenue pressure [2]. - The performance of traditional Chinese and Western medicine segments remained stable, with revenue growth of +12.82% in 2024 and +5.80% in Q1 2025, while consumer products faced challenges with declines in revenue [2]. - The company is leveraging AI technology by integrating DeepSeek-R1's "AI Xiaosan" to enhance operational efficiency through improved customer service and analysis capabilities [2]. Expansion and Market Position Summary - The company continues to expand its store network, with a total of 16,622 stores as of Q1 2025, including 6,239 franchise stores, and a net increase of 2,479 stores in 2024 [3]. - Revenue from franchise and distribution business reached 3.940 billion yuan in 2024, growing by +15.12%, and 1.130 billion yuan in Q1 2025, growing by +25.34% [3]. - The company is making progress in establishing specialized pharmacy qualifications, with 248 DTP pharmacies and over 10,000 designated medical insurance stores by the end of 2024 [3]. Profit Forecast and Investment Outlook - The company is expected to see profit growth outpacing revenue growth in 2025, with projected net profits of 1.07 billion yuan, 1.23 billion yuan, and 1.40 billion yuan for 2025-2027, respectively [4]. - The company is anticipated to benefit from industry trends and network optimization, leading to improved performance and market share [4].