Yixintang Pharmaceutical (SZ:002727) Orient Securities·2025-05-23 04:42Investment Rating - The investment rating for the company is "Buy" (maintained) with a target price of 18.18 CNY [3]. Core Views - The company is experiencing short-term profit pressure due to rapid store expansion and integration, with a focus on expanding into provinces outside its traditional markets and into county-level cities [7]. - The company reported a revenue of 18.00 billion CNY in 2024, a year-on-year increase of 3.57%, but a significant decline in net profit attributable to the parent company, which was 114 million CNY, down 79.23% year-on-year [7]. - The company aims to enhance its operational efficiency as it expands its store network, which totaled 11,498 stores by the end of 2024, with a net increase of 1,243 stores during the year [7]. Financial Information Summary - Revenue Forecast: - 2023A: 17,380 million CNY - 2024A: 18,000 million CNY (3.6% growth) - 2025E: 19,512 million CNY (8.4% growth) - 2026E: 21,476 million CNY (10.1% growth) - 2027E: 23,919 million CNY (11.4% growth) [2][9] - Net Profit Forecast: - 2023A: 549 million CNY - 2024A: 114 million CNY (-79.2% growth) - 2025E: 594 million CNY (420.4% growth) - 2026E: 748 million CNY (25.9% growth) - 2027E: 811 million CNY (8.5% growth) [2][9] - Earnings Per Share (EPS): - 2023A: 0.94 CNY - 2024A: 0.19 CNY - 2025E: 1.01 CNY - 2026E: 1.28 CNY - 2027E: 1.39 CNY [2][9] - Profitability Ratios: - Gross Margin: 33.0% in 2023A, expected to decline to 31.8% in 2024A, then gradually recover to 33.0% by 2027E [2][9]. - Net Margin: 3.2% in 2023A, dropping to 0.6% in 2024A, then recovering to 3.4% by 2027E [2][9]. - Valuation Ratios: - Price-to-Earnings (P/E) Ratio: 18.3 in 2023A, expected to rise to 88.2 in 2024A, then decrease to 12.4 by 2027E [2][9]. - Price-to-Book (P/B) Ratio: 1.3 in 2023A, remaining stable at 1.1 by 2027E [2][9].