LBX(SH:603883) Hua Xia Shi Bao·2025-05-16 12:49Core Viewpoint - The recent share reduction plan by the major shareholder of the pharmacy chain "老百姓" has raised concerns in the industry, reflecting the challenges faced by the retail pharmacy sector amid a significant transformation and declining growth rates [2][5][6]. Company Overview - "老百姓" was founded in 2001 and pioneered the self-service discount pharmacy model, becoming the first private listed pharmacy chain in China with over 10,000 stores [6][9]. - As of Q1 2025, "老百姓" operates a total of 15,252 stores, including 9,844 direct-operated and 5,408 franchised stores [6]. Financial Performance - In 2022, "老百姓" achieved a revenue of 20.176 billion yuan, a year-on-year increase of 28.54%, and a net profit of 785 million yuan, up 17.29% [9]. - In 2023, revenue grew to 22.437 billion yuan, a year-on-year increase of 11.21%, with a net profit of 929 million yuan, up 18.35% [9]. - However, in 2024, revenue slightly declined to 22.358 billion yuan, a decrease of 0.36%, and net profit fell significantly by 44.13% to 519 million yuan [10][11]. Shareholder Actions - The major shareholder, "医药集团," plans to reduce its holdings by up to 22.8029 million shares, representing no more than 3% of the total share capital, with a total value of approximately 440 million yuan [2][5]. - This is not the first reduction; since 2020, "医药集团" has cumulatively reduced its holdings by 21.7539 million shares, realizing approximately 1.092 billion yuan [8]. Industry Context - The retail pharmacy industry is undergoing a significant transformation, with a reported closure of 39,000 pharmacies nationwide in 2024, marking a closure rate of 5.7% [5][14]. - The tightening of medical insurance policies has led to a pause in the approval of new medical insurance designated pharmacies, intensifying competition among existing pharmacies [14][15]. Strategic Adjustments - "老百姓" aims to enhance profitability by reducing costs through management streamlining, controlling expenses, and lowering store rents, targeting a cost reduction of over 100 million yuan in 2025 [17]. - The company plans to open 1,000 new stores in 2025, primarily through franchising, while focusing on optimizing its market presence and leveraging existing assets [16][17]. DTP Pharmacy Development - The DTP pharmacy model is gaining traction, with "老百姓" reporting an 8% increase in DTP pharmacy revenue to 1.661 billion yuan in 2024 [15][16]. - The total number of DTP pharmacies in China has grown from 3,936 in 2019 to 7,132 by the end of 2023, indicating a compound annual growth rate of 17.0% [16].