\u3000\u3 Shengda Resources Co.Ltd(000603) 883 Lbx Pharmacy Chain Joint Stock Company(603883) )
Event:
On April 28, the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company realized revenue of 15.7 billion yuan (+ 12%), net profit attributable to parent company of 669 million yuan (+ 8%), net profit not attributable to parent company of 572 million yuan (+ 5%);
In Q4 of 2021, the revenue was 4.42 billion yuan (+ 15%), the net profit attributable to the parent company was 137 million yuan (+ 2%), and the net profit not attributable to the parent company was 95 million yuan (- 1%);
In 2022, Q1 company realized revenue of 4.14 billion yuan (+ 14%), net profit attributable to parent company of 242 million yuan (+ 6%), deducting net profit not attributable to parent company of 216 million yuan (+ 13%).
Event comments:
Lean store management, performance in line with expectations. The company has made great efforts to improve organizational efficiency and achieved initial results. In 2021, the company’s gross profit margin was 32.13%, a slight increase of 0.07 PCT year-on-year; The net interest rate was 5.01%, a year-on-year decrease of 0.46pct. In 2021, the gross profit margin of Q1 was 34.32%, with a year-on-year increase of 0.82pct and a month on month increase of 4.55pct; The net interest rate was 6.54%, a year-on-year decrease of 0.52pct and a month on month increase of 2.58pct. With the gradual recovery of the passenger flow of offline stores, the profitability of the company will be further enhanced.
The “four carriages” deeply ploughed the market and steadily promoted the national layout. According to the market characteristics of different levels, the company adheres to the three-dimensional deep cultivation mode of “four carriages” of direct operation, spark M & A, alliance and alliance. In 2021, the company added 2163 stores, and the number of stores in prefecture level cities and below accounted for 67%. As of Q1 2022, the company has 8612 stores in total, including 2370 franchisees and 6242 Direct stores. The company’s internal development and external expansion are driven by two wheels, driving the steady improvement of performance.
The transformation of digital technology enables the company’s long-term development. The company comprehensively promotes digital tool management and lays a foundation for further large-scale development while reducing cost and increasing efficiency. The company promotes the “comprehensive digital human and freight yard strategy” to improve the operation efficiency of the whole industrial chain. In addition, the company’s information smart computer room can support the scale of 100000 stores of Lbx Pharmacy Chain Joint Stock Company(603883) pharmacy in China.
Profit forecast and investment suggestions
As the company continues to expand its market share through extensive mergers and acquisitions, we expect the net profit attributable to the parent company to be RMB 814 million, RMB 1051 million and RMB 1295 million from 2022 to 2024, with corresponding growth rates of 22%, 29% and 23% respectively, maintaining the rating of “overweight”.
Risk tips
Store development is less than expected; 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.
