LBX(603883) 国泰君安·2024-09-01 01:38Investment Rating - Maintains an "Overweight" rating [2][3] - Target price adjusted to CNY 17.50, down from CNY 30.08 [5] Core Views - Revenue growth slowed in 2024H1, with total revenue reaching CNY 10.94 billion (+1.19%) and net profit attributable to shareholders at CNY 503 million (-2.05%) [3] - Retail and wholesale growth in 2024Q2 was +0.59% and +2.62%, respectively, with Western and Chinese patent medicines growing by +3.7% [3] - Outpatient coordination contributed positively, with 3,720 coordinated stores accounting for 32.42% of directly operated stores, boosting sales by 9.7% compared to non-coordinated stores [3] - Gross margin improved due to the "Torch Project," with Q1/Q2 gross margins increasing by +2.2pp and +1.0pp, respectively [3] - Self-built stores accounted for 86% of new directly operated stores in 2023-2024H1, impacting short-term profitability but expected to improve in the future [3] - The company announced a shareholder return plan, with a minimum cash dividend payout ratio of 50% of net profit attributable to shareholders from 2024-2026 [3] Financial Summary - Revenue for 2024E is projected at CNY 22.763 billion (+1.5%), with net profit attributable to shareholders at CNY 947 million (+1.9%) [4] - EPS for 2024E is forecasted at CNY 1.25, down from the previous estimate of CNY 1.47 [3] - ROE for 2024E is expected to be 13.0%, with a gross margin of 35.1% [4] - The company's total number of stores reached 14,969, including 5,046 franchised stores, with 88% of new stores opened in advantageous regions [3] Industry and Market Data - The company operates in the pharmaceutical/consumer staples sector [4] - The 52-week stock price range is CNY 12.00-36.27, with a current market capitalization of CNY 10.263 billion [6] - The current P/E ratio is 10.84x, and the P/B ratio is 1.41x [4] Comparable Company Valuation - The average P/E ratio for comparable companies in 2024E is 15x, with Yunnan Baiyao at 21x and Yifeng Pharmacy at 15x [12]