LBX(603883) 东吴证券·2024-09-03 12:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a revenue of 10.94 billion yuan in H1 2024, representing a year-on-year increase of 1.19%, while the net profit attributable to shareholders was 503 million yuan, down 2.05% [3] - The Torch Project has shown significant effectiveness in improving gross margins, with a gross margin of 34.32% in H1 2024, an increase of 1.6 percentage points [3] - The company continues to expand its presence in advantageous provinces and deepen its penetration into lower-tier markets, with a total of 14,969 stores as of H1 2024, including 9,923 direct-operated stores [4] Financial Performance Summary - Total revenue (in million yuan) for the years 2022A to 2026E is projected to grow from 20,176 in 2022 to 32,867 in 2026, with a CAGR of 18.46% [2] - Net profit attributable to shareholders is expected to increase from 784.96 million yuan in 2022 to 1,719.18 million yuan in 2026, reflecting a growth rate of 27.68% [2] - The latest diluted EPS is projected to rise from 1.03 yuan in 2022 to 2.26 yuan in 2026, indicating a strong upward trend [2] Business Segment Overview - Retail business revenue in H1 2024 was 9.022 billion yuan, with a gross margin of 38.41%, up 1.33 percentage points [3] - The revenue from Chinese and Western medicine reached 8.859 billion yuan, with a gross margin of 32.21%, while non-pharmaceutical revenue was 1.374 billion yuan, down 17.23% [3] Strategic Initiatives - The company is focusing on a multi-faceted growth strategy involving direct operations, acquisitions, franchises, and alliances to enhance market penetration [4] - As of H1 2024, 76% of the company's stores are located in prefecture-level cities and below, with 79% of newly opened stores in these areas [4] Earnings Forecast and Valuation - The forecast for net profit attributable to shareholders for 2024-2026 has been adjusted to 1,043 million, 1,346 million, and 1,719 million yuan respectively, corresponding to PE valuations of 10, 8, and 6 times [4]