Lbx Pharmacy Chain Joint Stock Company(603883) (603883)
Thickening the company’s performance, it plans to acquire one of the most influential pharmacies in Western Hunan and consolidate the voice of Hunan base camp
On December 10, the company announced that Lbx Pharmacy Chain Joint Stock Company(603883) signed a cooperation agreement with Hunan Huairen Health Industry Development Co., Ltd. to purchase 46% – 72% of the equity of Huairen health after restructuring by paying cash. Huairen health has more than 650 self operated pharmacies in Hunan and Guizhou, which will effectively fill the market of Lbx Pharmacy Chain Joint Stock Company(603883) in Western Hunan and consolidate the voice of Hunan base camp. After the completion of this transaction, Lbx Pharmacy Chain Joint Stock Company(603883) will rank first in the number of 7 stores in 14 prefectures and cities of Hunan Province, The number of stores in Hunan Province is expected to exceed 2700 (including franchising), becoming the chain pharmacy enterprise with the largest number of stores in Hunan Province. Considering the impact of the epidemic on store operation, we lowered the profit forecast for 2021-2023. It is estimated that the net profit attributable to the parent company in 2021-2023 will be adjusted from 696, 890 and 1124 million yuan to 684, 856 and 1055 million yuan, with EPS of 1.67/2.09/2.58 yuan / share and PE of 27.4/21.9/17.5 yuan respectively 8x, Lbx Pharmacy Chain Joint Stock Company(603883) store expansion is progressing smoothly, with strong fine management ability and integration ability, profitability is in the period of improvement, and the “buy” rating is maintained.
Pay equal attention to self construction + M & A, rapidly promote the franchise model, and plan to further promote and accelerate the pace of expansion
By 2021q3, the company had 8163 stores, including 6055 Direct stores and 2108 franchise stores. The company added 1866 stores in the first three quarters of 2021, Among them, there are 1259 Direct stores (724 self built stores, 143 asset mergers and acquisitions and 392 equity mergers and acquisitions), 607 franchise stores and steady expansion of stores. We continue to promote spark mode: as of 2021q3, the company has acquired more than 2400 stores through spark mode (about 300 more than 2021h1), covering 9 provinces such as Jiangsu, Gansu and Inner Mongolia. It is proposed to further accelerate the pace of expansion: on July 8, the company received the reply of the CSRC to the fixed increase plan, which was approved by the CSRC on June 21. The total amount of funds to be raised for the fixed increase is no more than 1.74 billion yuan, which is used to build new pharmacies and supplement working capital, It is expected to further accelerate the company’s expansion and improve the quality of operation.
Comprehensively improve the company’s operation ability and build a ” Lbx Pharmacy Chain Joint Stock Company(603883) ” brand
By vigorously cultivating pharmaceutical professionals, continuously improving the ability to undertake prescription outflow, actively developing online business, strengthening member management and other measures, the company comprehensively improves its business ability and contributes to sustainable development.
Risk tip: store expansion speed, post integration and profitability are lower than expected
