Yifeng Pharmary(SH:603939) Ping An Securities·2024-05-03 04:00Investment Rating - The report maintains a "Recommended" rating for the company [6][8]. Core Views - The company achieved revenue of 22.59 billion yuan in 2023, representing a year-on-year growth of 13.59%, and a net profit of 1.41 billion yuan, up by 11.90% [5]. - The company is expanding its store network steadily, with a total of 13,920 stores by the end of the first quarter of 2024, an increase of 670 stores from the previous period [6]. - The company has enhanced its pharmaceutical capabilities, with significant growth in the number of stores near hospitals and specialized pharmacies [6]. Financial Performance Summary - Revenue and Profit Forecasts: - 2023A: Revenue of 22,588 million yuan, net profit of 1,412 million yuan [4][10]. - 2024E: Expected revenue of 27,596 million yuan, net profit of 1,758 million yuan [4][10]. - 2025E: Expected revenue of 33,698 million yuan, net profit of 2,154 million yuan [4][10]. - 2026E: Expected revenue of 40,454 million yuan, net profit of 2,597 million yuan [4][10]. - Key Financial Ratios: - Gross margin for 2023 is 38.2%, with a net margin of 6.3% [11]. - Return on equity (ROE) is projected to increase from 14.4% in 2023 to 16.7% by 2026 [11]. - The company’s debt-to-asset ratio is 56.7% in 2023, expected to decrease to 53.8% by 2026 [11]. Store Expansion and Market Position - The company opened 3,196 new stores in 2023, including 1,613 self-built stores and 559 acquired stores [6]. - The company has established partnerships with over 150 specialized prescription drug suppliers, enhancing its market position [6]. - The geographical distribution of stores in economically developed regions provides a competitive advantage for future growth [8].