Yifeng Pharmary(SH:603939) Ping An Securities·2025-11-02 04:36Investment Rating - The report maintains a "Recommended" rating for Yifeng Pharmacy (603939.SH) with a current stock price of 24.42 yuan [1]. Core Views - The company achieved a revenue of 17.286 billion yuan in Q1-Q3 2025, representing a year-on-year growth of 0.39%. The net profit attributable to shareholders was 1.225 billion yuan, up 10.27% year-on-year [5]. - In Q3 alone, the company reported a revenue of 5.564 billion yuan, a 1.97% increase year-on-year, and a net profit of 345 million yuan, reflecting a 10.14% year-on-year growth [5]. - The report highlights effective control over sales expenses, with a sales expense ratio of 25.45% in Q3 2025, down 1.49 percentage points year-on-year [8]. - The company continues to expand its retail network, with 14,701 chain pharmacies across ten provinces and cities as of June 30, 2025, focusing on a direct sales model [8]. - The report projects steady growth in net profit for 2025-2027, estimating 1.770 billion yuan, 2.055 billion yuan, and 2.377 billion yuan respectively, driven by economic recovery and product structure optimization [8]. Financial Summary - For 2024A, the projected revenue is 24.062 billion yuan, with a net profit of 1.653 billion yuan, indicating a year-on-year growth of 8.3% [11]. - The gross margin is expected to improve gradually, reaching 41.0% by 2027E, while the net margin is projected to increase to 7.5% [11]. - The company’s return on equity (ROE) is forecasted to rise from 14.3% in 2024A to 16.2% in 2027E [11]. - The price-to-earnings (P/E) ratio is expected to decrease from 19.4 in 2024A to 12.5 in 2027E, indicating potential valuation improvement [11].