Yifeng Pharmary(SH:603939) CMS·2025-05-15 14:01Investment Rating - The report maintains an "Add" rating for the company [5] Core Views - The company demonstrates resilience in performance despite industry challenges, with profit margins expected to improve through quality enhancement and efficiency [2][9] - The company has actively closed 1,078 stores in 2024, primarily in the second half of the year, which has had a short-term impact on revenue growth but is anticipated to enhance profitability in the long run [2][9] - The company plans to increase cash dividends to enhance shareholder returns, distributing a total of 788 million yuan in cash dividends in 2024, which represents 51.56% of net profit [2] Financial Performance Summary - In 2024, the company achieved total revenue of 24.062 billion yuan, with a year-on-year growth of 6.53%, and a net profit of 1.529 billion yuan, reflecting an 8.26% increase [1][4] - For Q1 2025, the company reported revenue of 6.009 billion yuan, with a net profit of 449 million yuan, marking a year-on-year growth of 10.51% [1] - The company expects to achieve net profits of 1.759 billion yuan, 2.025 billion yuan, and 2.297 billion yuan for the years 2025, 2026, and 2027 respectively, with corresponding PE ratios of 19, 16, and 14 [9][12] Market Position and Strategy - The company has a well-established specialized store network, with a focus on regional expansion, having opened 2,512 new stores in 2024 [9] - The company has embraced online new retail, generating online revenue of 2.127 billion yuan in 2024, with O2O contributing 1.721 billion yuan [9] - The company continues to enhance its digital transformation and supply chain optimization, which is expected to drive profitability improvements [2][9]