门店数量快速增加，线下线上业务齐发展

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 26.88 CNY, based on a 16x PE for 2024 [4][14]. Core Insights - The company focuses on building a sustainable core market, particularly in Yunnan and the Sichuan-Chongqing region, to enhance operational capabilities and scale advantages [2]. - As of the end of 2023, the company operates 10,255 direct chain stores, a year-on-year increase of 11.39%, with 5,397 stores in Yunnan and 2,073 in the Sichuan-Chongqing area [2]. - The company has accelerated its online business through a new retail segment, achieving sales of 876 million CNY in 2023 [2]. - The company reported a revenue of 17.38 billion CNY in 2023, a slight decline of 0.29% year-on-year, while the net profit attributable to shareholders decreased by 45.60% to 549 million CNY [2][3]. Financial Performance Summary - In 2023, the company achieved a total revenue of 17.38 billion CNY, with a net profit of 549 million CNY, and a non-recurring net profit of 733 million CNY, reflecting declines of 45.60% and 25.94% respectively [2][3]. - For Q1 2024, the company reported a revenue of 5.10 billion CNY, a year-on-year increase of 14.96%, with a net profit of 242 million CNY, up 1.03% [2]. - The sales of traditional Chinese and Western medicines reached 13.04 billion CNY in 2023, a growth of 0.39%, accounting for 75.02% of total revenue [3]. - The company is expanding into health-related products, achieving sales of 370 million CNY in this new category in 2023 [3]. Future Projections - Revenue projections for 2024-2026 are estimated at 20.03 billion CNY, 23.47 billion CNY, and 28.10 billion CNY, with corresponding growth rates of 15.26%, 17.14%, and 19.74% [4]. - Net profit forecasts for the same period are 1.00 billion CNY, 1.16 billion CNY, and 1.47 billion CNY, with growth rates of 82.24%, 15.95%, and 26.33% respectively [4].