DSL(SH:603233) Haitong Securities·2024-06-05 01:31Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company achieved a revenue of 24.531 billion yuan in 2023, representing a year-on-year growth of 15.45%, with a net profit attributable to the parent company of 1.166 billion yuan, up 12.63% year-on-year [6][8] - The company continues to expand its store network, opening 1,382 self-built stores, 2,158 franchise stores, and acquiring 750 stores in 2023, bringing the total number of stores to 14,074 by the end of the year [6][7] - The retail business revenue grew by 6.58% to 20.509 billion yuan, while the wholesale business revenue surged by 122.46% to 3.423 billion yuan, indicating strong growth in both segments [6][9] - The company is actively developing a new retail business model, with sales from new retail (O2O+B2C) increasing by 45.25% year-on-year, and the gross margin and net margin levels steadily improving [6][11] Summary by Sections Financial Performance - In 2023, the company reported total revenue of 24.531 billion yuan, with a year-on-year growth of 15.5% expected for 2024, reaching 29.503 billion yuan [8][11] - The net profit for 2023 is projected at 1.166 billion yuan, with a growth rate of 12.6%, and expected to reach 1.435 billion yuan in 2024, growing at 23.0% [8][11] Business Segments - Revenue from traditional Chinese and Western medicine reached 17.699 billion yuan in 2023, up 16.6% year-on-year, with projections for continued growth in the coming years [9][11] - The non-pharmaceutical revenue was 3.259 billion yuan, reflecting a year-on-year increase of 7.9% [9] Cost and Efficiency - The company has optimized its expense ratios, with a sales expense ratio of 22.92%, a management expense ratio of 4.83%, and a financial expense ratio of 0.78%, leading to a total expense ratio of 28.86% [6][11] - The sales net profit margin stands at 5.02%, indicating effective cost management [6][11] Future Outlook - The company is expected to maintain a stable expansion pace, with projected net profits of 1.44 billion yuan, 1.74 billion yuan, and 2.08 billion yuan for 2024, 2025, and 2026, respectively [7][11] - The estimated price-to-earnings ratio for 2023 is set between 20-25 times, with a reasonable value range of 25.20 to 31.50 yuan per share [7][11]