DSL(SH:603233) Soochow Securities·2024-09-03 11:41Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company achieved a revenue of 13.345 billion yuan in H1 2024, representing a year-on-year increase of 11.29%, while the net profit attributable to shareholders was 658 million yuan, down 28.24% [3] - The franchise business is experiencing rapid growth, with franchise and distribution revenue reaching 1.973 billion yuan, up 33.85% [3] - The company is expanding its store network across 21 provinces, with a total of 16,151 stores as of H1 2024, including 10,772 direct-operated stores and 5,379 franchise stores [3] Financial Performance Summary - Total revenue forecast for 2024 is 28.214 billion yuan, with a year-on-year growth of 15.01% [2] - The net profit attributable to shareholders is projected to be 1.352 billion yuan in 2024, reflecting a growth of 15.90% [2] - The latest diluted EPS is expected to be 1.19 yuan per share in 2024, with a P/E ratio of 10.66 [2] Business Segmentation - Retail business revenue for H1 2024 was 11.065 billion yuan, up 8.20%, while the gross margin was 37.22% [3] - The revenue from traditional Chinese and Western medicine reached 9.959 billion yuan, with a gross margin of 30.64% [3] - Non-pharmaceutical products generated 1.564 billion yuan in revenue, with a gross margin of 42.10% [3] Store Expansion Strategy - The company is utilizing a "self-built + acquisition + franchise" strategy to expand into new provinces, with significant growth in franchise stores contributing to overall revenue [3][4] - The total number of stores increased by 2,077 since the beginning of the year, indicating a strong expansion strategy [3]