Yifeng Pharmary(SH:603939) Guotai Junan Securities·2024-09-01 05:23Investment Rating - The report maintains a "Buy" rating for the company [5][3] Core Views - The company achieved revenue of 11.762 billion yuan (+9.86%) and a net profit of 786 million yuan (+15.77%) in H1 2024, with Q2 revenue at 5.791 billion yuan (+6.45%) and net profit at 386 million yuan (+8.12%), meeting expectations [3][4] - Due to increased industry competition, the company may slow its store opening pace in the next 1-2 years, leading to a downward revision of EPS forecasts for 2024-2026 to 1.36/1.62/1.95 yuan from 1.45/1.79/2.21 yuan, with a target price adjustment to 24.48 yuan based on a PE of 18x [3][5] - Revenue growth has slowed, but gross margin remains stable, with Q2 gross margin at 40.87% (+0.56/+1.62pp YoY/QoQ), indicating limited impact from price competition on leading pharmacies [3][4] Summary by Sections Revenue and Profitability - H1 2024 revenue was 11.762 billion yuan, with a growth rate of 9.86%, while net profit increased by 15.77% to 786 million yuan [3] - Q2 revenue was 5.791 billion yuan (+6.45%), and net profit was 386 million yuan (+8.12%) [3] - The average daily revenue per square meter decreased to 51 yuan in H1 2024 from 55 yuan in H1 2023, attributed to declining demand for cold medicines and a challenging consumer environment [3] Business Segmentation - In Q2, retail and wholesale revenue growth rates were +6.2% and +7.8%, respectively, while growth rates for traditional Chinese medicine, Western medicine, and non-medicinal products were +5.1%, +13.0%, and +9.0% [3] - Online sales grew rapidly, with H1 2024 internet channel revenue reaching 1.096 billion yuan (+20.18%), including O2O revenue of 878 million yuan (+26.33%) [3] Store Expansion and Market Position - The company opened 1,575 new stores in H1 2024, reaching a total of 14,736 stores, with a growth rate of 27% [3] - The company continues to expand in advantageous regions, increasing market share and enhancing profitability [3]