Yifeng Pharmary(SH:603939) Huaxin Securities·2024-09-02 23:38Investment Rating - The report assigns a "Buy" rating for Yifeng Pharmacy (603939.SH) [1] Core Views - Yifeng Pharmacy achieved a revenue of 11.762 billion yuan in H1 2024, representing a year-on-year growth of 9.86%, and a net profit attributable to shareholders of 798 million yuan, up 13.13% from the previous year [1] - The company is focusing on balanced development and prioritizing efficiency amid industry competition [1] - The retail business gross margin for H1 2024 was 40.94%, slightly up by 0.06 percentage points compared to the same period in 2023 [1] - The company is expected to see revenue growth from 24.786 billion yuan in 2024 to 29.171 billion yuan in 2026, with net profits projected to rise from 1.614 billion yuan to 2.121 billion yuan in the same period [3][4] Summary by Sections Company Overview - Yifeng Pharmacy has maintained a net increase in store numbers despite industry challenges, with 1,575 new stores opened in H1 2024, including 842 self-built stores and 293 acquired stores [1] - The company is adapting to industry changes by enhancing management efficiency and adjusting store opening and closing strategies [1] Financial Performance - The company reported a gross margin of 40.94% in H1 2024, with drug gross margins at 36.46% (down 0.12 percentage points) and non-drug gross margins at 51.1% (up 0.03 percentage points) [1] - Forecasts indicate that the company's revenue will grow from 24.786 billion yuan in 2024 to 29.171 billion yuan in 2026, with corresponding net profits of 1.614 billion yuan and 2.121 billion yuan [3][4] Market Position - Yifeng Pharmacy is positioned as a leading player in the retail pharmacy sector, benefiting from the increasing concentration in the industry due to policy support [2] - The company operates the largest number of chain pharmacies among private pharmacy chains in China, with 14,736 stores as of June 2024 [1]