Yifeng Pharmary(603939) 东吴证券·2024-11-03 06:07Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company reported a steady performance in its Q3 2024 results, with total revenue of 17.22 billion yuan (up 8.38% year-on-year) and a net profit attributable to shareholders of 1.11 billion yuan (up 11.14%) [2] - The wholesale business is experiencing rapid growth, with contributions from both Western and traditional Chinese medicine driving core revenue growth [2] - The company is expanding its store network steadily, with a total of 15,050 stores as of Q3 2024, including 11,425 direct-operated and 3,625 franchised stores [3] Revenue and Profitability - For the first three quarters of 2024, the company achieved retail revenue of 15.18 billion yuan (up 6.84%) and wholesale revenue of 1.48 billion yuan (up 17.56%) [2] - The gross profit margin improved to 40.39% for the first three quarters, with a Q3 margin of 41.13% [3] - The company adjusted its marketing strategy in Q3, leading to cost reductions and efficiency improvements [3] Store Expansion and Strategy - The company added 679 new stores in Q3 2024, with 420 self-built, 60 through acquisitions, and 199 franchised [3] - A total of 365 stores were relocated or closed in Q3, primarily in regions with weaker market conditions, which is expected to enhance operational efficiency in the future [3] Financial Forecast and Valuation - The forecast for net profit attributable to shareholders for 2024-2026 has been adjusted to 1.55 billion, 1.83 billion, and 2.12 billion yuan, respectively [4] - The corresponding P/E ratios for the current market capitalization are projected to be 20, 17, and 15 times for 2024, 2025, and 2026 [4]