Yixintang Pharmaceutical (SZ:002727) Orient Securities·2025-05-23 05:23Investment 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 of 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 projections for the company are as follows: - 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] - The company's net profit attributable to the parent company is projected to recover significantly by 2025, reaching 594 million CNY, a 420.4% increase from 2024 [2] - The earnings per share (EPS) forecast is as follows: - 2023A: 0.94 CNY - 2024A: 0.19 CNY - 2025E: 1.01 CNY - 2026E: 1.28 CNY - 2027E: 1.39 CNY [2] - The company’s gross margin is expected to stabilize around 33.0% by 2027, with a slight dip to 31.8% in 2024 [2] Market Performance - The company's stock price as of May 21, 2025, was 17.19 CNY, with a 52-week high of 22.73 CNY and a low of 10.84 CNY [3] - The company has shown a strong absolute performance over the past week and month, with increases of 24.03% and 31.72% respectively [4]