Yifeng Pharmary(603939) 华创证券·2024-11-02 16:38Investment Rating - The report maintains a "Recommended" investment rating for the company with a target price of 31.3 CNY, compared to the current price of 26.10 CNY [1]. Core Insights - The company demonstrated steady growth with a revenue of 17.22 billion CNY for the first three quarters of 2024, reflecting an 8.4% year-over-year increase, and a net profit of 1.11 billion CNY, up 11.1% year-over-year [1]. - The retail business is developing steadily, with traditional Chinese medicine revenue increasing by 9.0% year-over-year, and non-pharmaceutical revenue showing a slight increase of 0.2% [1]. - The company is focusing on long-term development with a moderate slowdown in store expansion, adding 679 new stores in Q3 2024, bringing the total to 15,050 stores, a 21.9% year-over-year increase [1]. - Profitability remains high, with a gross margin of 41.1% in Q3 2024, an increase of 2.5 percentage points year-over-year [1]. Financial Summary - Total revenue for 2023 is projected at 22.588 billion CNY, with a year-over-year growth rate of 13.6%. For 2024, revenue is expected to reach 24.874 billion CNY, reflecting a 10.1% growth [2]. - The net profit for 2023 is estimated at 1.412 billion CNY, with a growth rate of 11.6%. The forecast for 2024 is a net profit of 1.581 billion CNY, indicating a 12.0% increase [2]. - The earnings per share (EPS) for 2023 is projected at 1.16 CNY, with an expected increase to 1.30 CNY in 2024 [2].