老百姓深度报告：二十三年药房风雨路，成就行业先驱

Investment Rating - The report assigns a "Buy" rating for the company, marking the first coverage [1]. Core Insights - The company is one of the largest pharmaceutical retail chains in China, with a revenue scale leading the industry and a wide coverage area. As of September 30, 2023, the total number of stores exceeded 13,065, including 8,945 direct-operated stores and 4,120 franchise stores, covering 20 provinces [4][34]. - The industry is experiencing increasing concentration, with the chain pharmacy rate rising to 55.92% in 2022. The top 100 pharmacies accounted for 55.83% of the market share, indicating a significant head effect where leading companies are growing faster [4][50]. - The company has adopted a "four-wheel drive" strategy focusing on both organic growth and external expansion through acquisitions, enhancing its operational capabilities and market presence [4][5]. - The company is transforming its stores to enhance profitability and has made significant progress in logistics and supply chain management, with a notable increase in self-owned brand sales [4][5]. Summary by Sections Company Overview - The company has established itself as a pioneer in the "discount pharmacy" model since its inception in 2001, leading to rapid expansion and recognition in the industry [34][39]. - The company has a stable and concentrated shareholding structure, with significant investments from foreign entities, which are expected to support long-term growth [40][41]. Financial Performance - The company achieved a revenue of 20.176 billion yuan in 2022, with a year-on-year growth of 28.54%. The net profit attributable to the parent company was 785 million yuan, reflecting a growth of 17.29% [42]. - For the first three quarters of 2023, the company reported a revenue of 16.042 billion yuan, a year-on-year increase of 16.44%, and a net profit of 717 million yuan, up 17.54% [42]. Market Dynamics - The retail pharmacy market is expected to benefit from policy changes promoting prescription outflow, with the government enhancing regulations to facilitate this process [53][55]. - The company is well-positioned to capitalize on the growing trend of prescription outflow, with a significant increase in the number of stores qualifying for outpatient management [4][56].