Yifeng Pharmary(SH:603939) EBSCN·2024-05-04 06:09Investment Rating - The report maintains a "Buy" rating for the company [2][8] Core Views - The company achieved steady growth in performance despite high base effects, with significant expansion in outpatient pharmacy operations [5][6] - The company reported revenue, net profit attributable to shareholders, and net profit excluding non-recurring items for 2023 at CNY 225.88 billion, CNY 14.12 billion, and CNY 13.62 billion, respectively, representing year-on-year growth of 13.59%, 11.90%, and 10.92% [5] - For Q1 2024, the company reported revenue, net profit attributable to shareholders, and net profit excluding non-recurring items of CNY 59.71 billion, CNY 4.07 billion, and CNY 3.99 billion, respectively, with year-on-year growth of 13.39%, 20.89%, and 24.26% [5] Summary by Sections Financial Performance - The company achieved a revenue growth rate of 13.59% in 2023, with a net profit growth rate of 11.90% [5] - The operating cash flow for 2023 was CNY 46.24 billion, up 17.94% year-on-year [5] - The basic EPS for 2023 was CNY 1.40 [5] Business Expansion - The total number of stores reached 13,250 by the end of 2023, with a year-on-year increase of 2,982 stores [6] - The company’s retail business revenue for Q1 2024 was CNY 52.68 billion, growing by 10.50% year-on-year [6] - The wholesale business revenue for Q1 2024 was CNY 5.08 billion, with a year-on-year increase of 36.99% [6] New Retail Initiatives - The company has implemented a new retail system that includes over 9,000 O2O online-to-offline stores and more than 600 24-hour delivery stores [7] - O2O and B2C sales accounted for 8.0% of total revenue, with O2O sales revenue of CNY 13.99 billion, up 3% year-on-year [7] - The company has established partnerships with over 150 professional prescription drug suppliers to enhance its service offerings [7] Profitability and Valuation - The company’s gross profit margin for 2023 was 38.21%, a decrease of 1.32 percentage points year-on-year [6] - The net profit margin for 2023 was 7.00%, remaining stable due to effective cost control [6] - The report projects net profits for 2024 and 2025 at CNY 17.61 billion and CNY 21.79 billion, respectively, with a PE ratio of 25 and 20 [8]