DSL(SH:603233) Xinda Securities·2024-05-07 01:30Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the benchmark index [1]. Core Insights - The company achieved a revenue of 24.53 billion yuan in 2023, reflecting a year-on-year growth of 15.45%, with a net profit attributable to shareholders of 1.17 billion yuan, up 12.63% year-on-year [1]. - In Q1 2024, the company reported a revenue of 6.75 billion yuan, maintaining a year-on-year growth of 13.54%, although net profit showed a decline of 19.79% [1]. - The company continues to expand its store network, adding 841 new stores in Q1 2024, bringing the total to 14,915 stores across 19 provinces [1]. Financial Performance Summary - In 2023, the company's retail pharmacy business generated 20.51 billion yuan, accounting for 85.70% of total revenue, with a growth rate of 6.58% [1]. - The franchise and distribution business saw a remarkable growth of 122.46%, contributing 3.42 billion yuan to the total revenue [1]. - The gross margin for Q1 2024 was reported at 35.46%, down 2.68 percentage points year-on-year, while the expense ratio increased by 0.74 percentage points to 26.87% [1]. Store Expansion and Market Strategy - The company has been actively pursuing a nationwide store expansion strategy, with significant growth in the southern regions, where 924 new stores were opened in 2023 [1]. - The company has successfully integrated 750 stores through acquisitions in 2023, with a focus on the eastern and northern regions [1]. - The report forecasts revenue growth for the company, projecting revenues of 29.73 billion yuan, 36.19 billion yuan, and 44.08 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 21%, 21.7%, and 21.8% [2].