Yifeng Pharmary(603939) 东吴证券·2024-05-01 05:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 22.588 billion yuan in 2023, representing a year-on-year growth of 13.59%, and a net profit attributable to shareholders of 1.412 billion yuan, up 11.90% year-on-year. For Q1 2024, the revenue was 5.971 billion yuan, with a year-on-year increase of 13.39%, and a net profit of 407 million yuan, reflecting a growth of 20.89% [3][4] - The company continues to expand its wholesale business, which has contributed to revenue growth. The gross profit margin for 2023 was 38.21%, down 1.32 percentage points, primarily due to an increase in the proportion of wholesale income and a slight decline in retail gross margin [3][4] - The company has maintained a steady expansion strategy, with a total of 13,920 stores as of Q1 2024, adding 701 stores in the quarter. The compound annual growth rate (CAGR) of store numbers from 2018 to 2023 was 29.69% [4] Financial Performance Summary - The total revenue forecast for 2024 is 27.567 billion yuan, with a projected net profit of 1.792 billion yuan, corresponding to a P/E ratio of 24.26. For 2025, the revenue is expected to reach 33.598 billion yuan, with a net profit of 2.176 billion yuan, and a P/E ratio of 19.97. The forecast for 2026 is a revenue of 40.842 billion yuan and a net profit of 2.806 billion yuan, with a P/E ratio of 15.49 [2][4] - The company’s cash flow from operating activities for 2023 was 4.624 billion yuan, with a projected decrease to 3.751 billion yuan in 2024. The net increase in cash for 2023 was a decrease of 450 million yuan, with an expected increase of 870 million yuan in 2024 [9] Business Structure and Growth - In 2023, the company achieved retail drug revenue of 20.185 billion yuan, up 12.00%, and wholesale drug revenue of 1.892 billion yuan, up 39.23%. The proportion of wholesale business revenue increased to 8.38%, up 1.54 percentage points [3][4] - The company’s strategy focuses on regional concentration and steady expansion, which has led to a mature store network and enhanced competitive advantages in the industry [4]