Yifeng Pharmary(SH:603939) Xiangcai Securities·2024-06-07 10:31Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [5][10][20]. Core Insights - The company has demonstrated steady revenue growth, achieving an operating income of 22.588 billion yuan in 2023, a year-on-year increase of 13.59%, and a net profit attributable to shareholders of 1.412 billion yuan, up 11.90% [2][10]. - The operational efficiency of the company is highlighted, with a gross profit margin of 38.21%, the highest among its peers in the A-share offline pharmacy sector, and a net profit margin of 6.25%, also leading the industry [3][10]. - The company is expanding its store network significantly, adding 3,196 new stores in 2023, with a total of 13,250 stores by the end of the year, reflecting a year-on-year increase of 29.04% [4][10]. Financial Performance - In Q1 2024, the company reported an operating income of 5.971 billion yuan, a 13.39% increase year-on-year, and a net profit of 407 million yuan, up 20.89% [2][10]. - The forecast for 2024-2026 anticipates revenues of 26.858 billion yuan, 32.990 billion yuan, and 41.186 billion yuan, with net profits of 1.533 billion yuan, 1.867 billion yuan, and 2.248 billion yuan respectively [10][20]. Business Expansion Strategy - The company follows a "regional focus and steady expansion" strategy, targeting core areas in Central South, East China, and North China while expanding nationwide through new openings, acquisitions, and franchises [4][16][19]. - The company has established a multi-tiered store network, including flagship stores, regional center stores, medium-sized community stores, and small community stores [4][16]. Online and Offline Integration - The company is actively engaging in the online and offline integration strategy, establishing various pharmacy types to capture hospital prescription outflows, including DTP specialty pharmacies and dual-channel medical insurance pharmacies [5][10].