Yifeng Pharmary(SH:603939)2024-06-04 11:00Investment Rating - The report assigns an "OUTPERFORM" rating to the company with a target price of RMB 52.50 [1]. Core Insights - The company reported a revenue of RMB 22.59 billion for 2023, representing a year-on-year growth of 13.59%, and a net profit attributable to shareholders of RMB 1.41 billion, up 11.90% year-on-year [2][7]. - The company continues to expand its store count, surpassing 10,000 stores, with a total of 13,920 stores by Q1 2024. It plans to add 4,000 new stores in 2024 [2][8]. - The outpatient coordinated care policies are advancing, which is expected to benefit leading chain pharmacies like the company [2][8]. - The retail business generated revenue of RMB 20.19 billion, growing by 12.00% year-on-year, while the wholesale business saw a significant increase of 39.23% year-on-year, reaching RMB 1.89 billion [2][8]. - The company has shown improvement in its expense ratios, with a gross profit margin of 38.21% and a net profit margin of 7.00% [2][8]. Financial Summary - For 2023, the company achieved a revenue of RMB 22.59 billion, with a net profit of RMB 1.41 billion. The revenue for Q4 2023 was RMB 6.70 billion, with a net profit of RMB 0.41 billion [2][7]. - The company expects net profits for 2024-2026 to be RMB 1.77 billion, RMB 2.17 billion, and RMB 2.67 billion, with growth rates of 25.5%, 22.4%, and 22.8% respectively [2][8]. - The projected revenue for 2024 is RMB 27.62 billion, with a year-on-year growth of 22.3% [3][6].