\u3000\u3 China Vanke Co.Ltd(000002) 727 Yixintang Pharmaceutical Group Co.Ltd(002727) )
Event: on the evening of March 14, the company released its performance express for 2021. During the reporting period, the company achieved a revenue of 14.585 billion yuan (+ 15.24%), a net profit attributable to the parent company of 921 million yuan (+ 16.65%), and a net profit not attributable to the parent company of 897 million yuan (+ 19.22%).
Q4 performance is under pressure, the annual performance growth is stable, and the profitability has been enhanced. Quarter by quarter, Q1-Q4 company achieved revenue of RMB 34.29/32.73/37.97/4.087 billion respectively, with a year-on-year increase of 11.07% / 11.25% / 18.29% / 19.57%, and the growth rate of revenue accelerated quarter by quarter; The net profit attributable to the parent company was RMB 261 / 2.63/2.4/157 million respectively, with a year-on-year increase of 27.28% / 24.42% / 27.83% / – 15.59%. Q4 performance was under pressure. Throughout the year, the company’s performance maintained steady growth under various factors such as covid-19 epidemic affecting commodity display and opening activities, the net interest rate increased by 0.07pct to 6.31% year-on-year, and the profitability was enhanced.
Store expansion accelerated and continued to promote the integrated store group of cities, counties and townships. As of December 31, 2021, the total number of Direct stores of the company was 8560, with a net increase of 1355 stores (939 in the same period last year), and the expansion of stores accelerated. Among them, Q4 has a net increase of 204 stores (294 in the same period last year). The company adheres to the layout strategy of high-density online stores in few regions, and has three-dimensional and in-depth layout at provincial capital level, prefecture level, county level and township level. There are more than 1500 market stores at provincial level, prefecture level, county level and township level, forming a unique integrated development pattern of cities, counties and townships in the industry. The logic behind it is that the store group effect can not only increase the synergy between stores, but also form the regional brand competitiveness. The small regional high-density layout has certain advantages in many aspects, such as brand efficiency, logistics distribution, medication habits, talent reserve and so on.
Adhere to the Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integration strategy and accelerate the layout of o2o business in existing store outlets. The company adheres to the Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integration strategy, continues to promote the 020 business layout of existing stores, and focuses on promoting the sales scale of home o2o self-supporting business. By 2021h1, the number of o2o business stores had reached 7298, with a coverage rate of 90.62% of the total number of stores. In the first half of the year, o2o business accounted for 78.33% of the overall e-commerce business sales. The company has identified 020 business as the core business operation of e-commerce, and the business process has been continuously optimized.
Investment suggestion: we expect the net profit of 20222023 to be 1.105/1.331 billion yuan respectively, with a year-on-year growth rate of 19.77% / 20.45% and EPS of 1.85/2.23 yuan respectively, corresponding to 11 times and 8 times of the current share price. The operating efficiency of the company has been improved, the regional advantages have been continuously consolidated, and the performance growth is stable, which is lower than the historical valuation center. Continue to give a “buy” rating.
Risk warning: competition intensifies risk; Integration is less than expected risk; Policy risk.
