\u3000\u3000 Lbx Pharmacy Chain Joint Stock Company(603883) (603883)
Event:
The company announced that on February 11, it was scheduled to issue additional shares, raising a total of 1.74 billion yuan, the issue price was 43.59 yuan / share, and the number of shares issued was 39.93 million (an increase of 9.66%).
Event comments:
It has been blessed by a number of well-known institutions at home and abroad: the issuing objects include 20 overseas investment institutions, well-known public fund companies and state-owned assets institutions, among which Guangdong hengkuo Investment Management Co., Ltd. has been allocated 299 million yuan, Cathay Pacific Fund has been allocated 188 million yuan, Huaxia Fund has been allocated 124 million yuan, Guotai Junan Securities Co.Ltd(601211) securities have been allocated 110 million yuan, in addition to CAITONG fund, e fund Shouyuan investment (UK), Barclays Bank, etc. were allocated 50-100 million yuan. This non-public offering conforms to the company’s development strategy, helps to optimize UFIDA’s core platform and application products, improves the company’s market competitiveness, and the ownership structure will be further optimized.
Fixed growth was implemented and the capital structure was optimized. According to the fixed increase plan, the raised funds will be used for the new chain drugstore project, Huadong Medicine Co.Ltd(000963) product sorting and processing project, enterprise digital platform and new retail construction project and supplement working capital. After the fixed increase is implemented, it can further improve the number and operation quality of the company’s stores, meet the company’s overall development strategy and business objectives, further expand the company’s business scale and improve the profitability; The capital strength of the company will be strengthened, so that the company can have more sufficient working capital for main business operation and expansion, which is conducive to the sustainable, stable and healthy development of the company.
The characteristic mode of “self construction + M & A + franchise + alliance” is expected to expand continuously in the future. The company has a nationwide store network, three-dimensional deep cultivation, comprehensive and large-scale. The company’s stores have covered 22 provincial markets and more than 140 cities above prefecture level. According to the market characteristics of different levels, the company continues to build a three-dimensional deep cultivation mode of “four carriages” of direct marketing, spark, alliance and alliance, so that the company can take the lead in the development trend of industry integration; Under the continuous overweight of the medical reform policy, the concentration of superimposed pharmacies continues to increase, and Lbx Pharmacy Chain Joint Stock Company(603883) as a head chain pharmacy will make further profits.
Profit forecast and investment suggestions
As the company continues to expand its market share through extensive mergers and acquisitions, and considering the equity expansion and financial expense income brought by the implementation of additional issuance, we expect the company’s operating revenue to be 15.8/19/24.2 billion yuan and the net profit attributable to the parent company to be 69 / 85 / 11 million yuan from 2021 to 2023, with a year-on-year increase of 11% / 23% / 29%, maintaining the “increased holding” rating.
Risk tips
The uncertainty of M & a extension; The outflow of prescriptions did not meet expectations; The negative impact of volume purchase on the variety price of drugstores; The impact of online pharmacies on offline pharmacies is uncertain.
