\u3000\u3 China Vanke Co.Ltd(000002) 727 Yixintang Pharmaceutical Group Co.Ltd(002727) )
Events
The company issued 2021 annual performance express
In 2021, the company realized operating income, net profit attributable to parent company and net profit after deduction of non-profit were 14.585 billion yuan, 921 million yuan and 897 million yuan respectively, with a year-on-year increase of 15.24%, 16.65% and 19.22% respectively, and realized earnings per share of 1.56 yuan.
Brief comment
Under the influence of the epidemic, the performance met expectations
In 2021, the company achieved operating income, net profit attributable to parent company and net profit after deduction of non-profit were 14.585 billion yuan, 921 million yuan and 897 million yuan respectively, with a year-on-year increase of 15.24%, 16.65% and 19.22% respectively, and achieved earnings per share of 1.56 yuan, which met the expectations.
The growth rate of H2 revenue side of the company improved month on month, gradually stepped out of the impact of the high base of H1 epidemic prevention materials, and the operating profit matched the growth of revenue. On the whole, the operation is still affected by the following factors: 1) the switching of Q4 medical insurance system has an impact on the sales of some supplementary catalogue varieties in the original province; 2) Q4 local epidemic distribution; 3) Adjustment of housing lease standards; 4) In 2021, there were many new stores, which dragged down the current performance and laid out the future. Considering the large store reserves in the growth period of the whole company, the future performance is expected to continue to maintain steady growth.
Stores expanded steadily, and the proportion outside the province continued to increase
In 2021, the expansion speed of the company’s stores was accelerated throughout the year. By the fourth quarter of 2021, 1355 stores had been added, an increase of about 18.8% compared with last year. The total number of direct chain stores reached 8560, and the scale expansion speed was stable, which was consistent with the company’s expectations, laying a good foundation for healthy growth in the future. Among them, the proportion of stores outside the province continues to increase, the pattern outside the province continues to expand, and Sichuan and Chongqing are still the focus of the company’s planned expansion.
Profit forecast and investment rating
We expect the company to achieve operating revenue of 14.559 billion yuan, 16.787 billion yuan and 19.507 billion yuan respectively from 2021 to 2023, and net profit attributable to parent company of 921 million yuan, 1.060 billion yuan and 1.248 billion yuan respectively, with year-on-year growth of 16.6%, 15.1% and 17.7% respectively, equivalent to EPS of 1.55 yuan / share, 1.78 yuan / share and 2.10 yuan / share respectively, corresponding to valuation of 17.3x, 15.1x and 12.8x respectively, maintaining the buy rating.
Risk analysis
The medical insurance policy is becoming stricter; Store expansion progress is lower than expected; The profitability of stores decreased; The progress of prescription outflow is lower than expected;
