\u3000\u3 Shengda Resources Co.Ltd(000603) 883 Lbx Pharmacy Chain Joint Stock Company(603883) )
The company released the annual report of 2021: in 2021, the revenue was 15.696 billion yuan (+ 12.38%); The net profit attributable to the shareholders of the listed company was 669 million yuan (+ 7.75%); Deduct non net profit of 572 million yuan (+ 5.04%). In the fourth quarter and single quarter, the company realized revenue of 4.415 billion yuan (+ 14.77%); The net profit attributable to the shareholders of the listed company was 137 million yuan (+ 2.14%); Deduct non net profit of 95 million yuan (- 1.02%).
Distribution plan: cash dividend of 5 yuan (including tax) will be distributed for every 10 shares, and cash dividend of 22397865450 yuan (including tax) will be distributed. At the same time, 3 shares will be added to all shareholders for every 10 shares by converting capital reserve into share capital, and a total of 134387193 shares are proposed to be converted into share capital.
At the same time, the company released the first quarter report of 2022: the revenue was 4.141 billion yuan (+ 13.81%), and the net profit attributable to the shareholders of the listed company was 242 million yuan (+ 6.26%); Deduct non net profit of 216 million yuan (+ 12.75%).
Ping An View:
The company has strengthened its extensive mergers and acquisitions, and the number of stores has increased rapidly: the company has covered 20 provincial markets, more than 120 prefecture level cities and more than 590 districts and counties in China, opened 8352 stores in China, and added 2163 stores in 2021. In 2021, 245 Direct stores will be added in Central China; 47 in South China; 399 in North China; 293 in East China; 280 in Northwest China. In 2022q1, the company has 8612 stores (including 6242 Direct stores and 2370 franchise stores), and 359 new stores (including 156 Direct stores and 203 franchise stores). With the steady expansion, the company continues to expand its own volume and seize the market.
The company has strong pharmaceutical ability and strong prescription undertaking ability: by the end of 2021, the company's Direct stores, traditional Chinese medicine door-to-door stores accounted for 92.17%, hospital side stores accounted for 10%, 452 special clinics and 145 DTP pharmacies. In 2021, the state put forward the "dual channel" policy, which made it clear that the drugs for medical insurance negotiation can be purchased in qualified pharmacies and enjoy the same medical insurance reimbursement mode as the hospital, which is conducive to undertaking the drugs for national negotiation in the off-site market. The expansion of the drugs for medical insurance reimbursement at the retail end is expected to bring the off-site self funded drugs and new drugs into the medical insurance reimbursement system. At present, the company has 149 stores with dual channel qualification Lbx Pharmacy Chain Joint Stock Company(603883) pharmacy's chronic disease management service has been continuously optimized, and 5434 chronic disease management experts and various self-test Bluetooth smart devices have been configured in stores across the country. The sales of prescription drug programs reached 518 million, with a year-on-year increase of 11.3%.
The effect of digital management is prominent, and the company's operation is improving: by the end of 2021, Lbx Pharmacy Chain Joint Stock Company(603883) pharmacy operated more than 27000 kinds of commodities, a year-on-year decrease of 12.6%; The sales of unified mining accounted for 62.7%, an increase of 3.5 percentage points over the same period last year; The company's inventory turnover days are 84 days, continuing to maintain the industry-leading level. The company strengthened digital management, launched the self-developed big data 2.0 platform, and established a supply chain platform to reduce procurement costs, reduce inventory turnover days and improve supply chain efficiency.
Maintain the "recommended" rating: with the continuous improvement of industry concentration and the increment brought by the outflow of prescriptions, the head chain drugstore is expected to maintain a considerable growth for 5-10 years. As a leading drugstore enterprise in China, the company has excellent performance in the past and large growth space in the future. The strategy of regional focus helps to deeply cultivate the provinces already distributed and improve the profitability of the company. Considering the impact of the epidemic on the company, we lowered the profit forecast for 20222023 and added the profit forecast for 2024 (the original forecast net profit for 20222023 was 1.012 billion yuan and 1.218 billion yuan). The net profit of the company for 20222024 is expected to be 834 million yuan, 970 million yuan and 1.122 billion yuan, maintaining the "recommended" rating.
Risk tips: 1. Risk of industrial policy change: the promotion of medical reform policy may have an impact on the company's performance. 2. Risk that the progress of M & A does not meet expectations: if there is an unexpected situation in the company's M & A integration, the performance of the acquired stores may be lower than expected. 3. Drug safety risk: if there is negligence in a certain link of quality control in drug circulation, it may bring drug safety risk.
