DSL(SH:603233) Guolian Minsheng Securities·2025-09-16 11:22Investment Rating - The investment rating for the company is "Accumulate" (maintained) [6] Core Views - The company has exceeded profit growth expectations through cost reduction and efficiency improvements [6] - In H1 2025, the company reported revenue of 13.523 billion yuan (up 1.33% year-on-year) and a net profit of 798 million yuan (up 21.38% year-on-year) [4][10] - The operating cash flow net amount reached 2.91 billion yuan (up 64.67% year-on-year) [4] Financial Performance Summary - In Q2 2025, the company achieved revenue of 6.567 billion yuan (down 0.41% year-on-year) and a net profit of 338 million yuan (up 30.49% year-on-year) [4][10] - The gross profit margin for H1 2025 was 34.86% (down 0.03 percentage points year-on-year), while the net profit margin increased to 5.90% (up 0.97 percentage points year-on-year) [11] - The company’s retail business revenue was 11.005 billion yuan (down 0.54% year-on-year), with a gross margin of 37.58% (up 0.36 percentage points year-on-year) [12] Business Segment Insights - The contribution of franchise business to revenue has increased, with franchise and distribution business revenue reaching 2.136 billion yuan (up 8.26% year-on-year) [12] - The sales of traditional Chinese and Western medicine increased, but the gross margin faced pressure [12] - The company opened 280 new stores in H1 2025, bringing the total number of stores to 16,833 [13] Future Projections - Revenue projections for 2025-2027 are 29.204 billion yuan, 32.542 billion yuan, and 36.075 billion yuan, with year-on-year growth rates of 10.22%, 11.43%, and 10.86% respectively [11] - The expected net profits for the same period are 1.081 billion yuan, 1.249 billion yuan, and 1.437 billion yuan, with growth rates of 18.20%, 15.52%, and 15.08% respectively [11]