业绩稳健增长，门店网络持续扩张

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company achieved a revenue of 22.437 billion yuan in 2023, representing a year-on-year increase of 11.21%, with a net profit attributable to shareholders of 0.929 billion yuan, up 18.35% year-on-year [2][4] - The company’s store network has expanded significantly, covering 18 provincial markets and over 150 cities, capturing approximately 75% of the Chinese pharmaceutical retail market [2][3] - The company is implementing a "four-wheel drive" strategy involving direct sales, mergers, franchises, and alliances to enhance its market presence [2][3] Financial Performance - In Q1 2024, the company reported a revenue of 5.539 billion yuan, a year-on-year increase of 1.81%, and a net profit of 0.321 billion yuan, up 10.27% year-on-year [2] - The overall gross margin for 2023 was 32.55%, an increase of 0.67 percentage points year-on-year, while the operating cash flow net amount was 2.730 billion yuan, up 17.95% year-on-year [2][3] - The company’s financial projections for 2024 to 2026 indicate revenues of 26.298 billion yuan, 31.288 billion yuan, and 37.319 billion yuan, respectively, with corresponding net profits of 1.119 billion yuan, 1.363 billion yuan, and 1.638 billion yuan [4][6] Store Expansion and Efficiency - As of Q1 2024, the total number of stores reached 14,109, including 9,470 direct stores and 4,639 franchise stores, with 642 new stores added in Q1 2024 [3][6] - The average preparation period for new direct stores has been reduced to 40 days in 2023, a decrease of 9 days compared to 2022 [2][3] - The company’s new store openings in advantageous provinces and key cities accounted for 86% of total new stores, with 78% of new stores located in lower-tier cities, enhancing profitability [2][3] Future Outlook - The company expects to maintain strong growth with projected revenue increases of 17.2%, 19.0%, and 19.3% for 2024, 2025, and 2026, respectively [4][7] - The estimated P/E ratios for the next three years are 19X, 15X, and 13X, indicating a favorable valuation trend [4][7]