\u3000\u3 Shengda Resources Co.Ltd(000603) 233 Dashenlin Pharmaceutical Group Co.Ltd(603233) )
Event: on April 27, 2022, the company issued the annual report of 2021 and the report of the first quarter of 2022. In 2021, the company achieved revenue and net profit attributable to parent company after deduction of non-profit of RMB 16.759 billion (+ 14.92%) and RMB 718 million (- 29.77%) respectively; In 2022q1, the company achieved revenue of 4.677 billion yuan (+ 15.22%) and net profit of 396 million yuan (+ 16.93%) respectively, and the performance growth in 2022q1 was in line with expectations.
The performance growth of 2022q1 was significantly improved month on month, and the performance growth was in line with expectations
In 2021, the company realized revenue and net profit attributable to parent company after deduction of Non Profits of 16.759 billion yuan and 718 million yuan respectively, with a year-on-year increase of 14.92% and a year-on-year decrease of 29.77% respectively. The year-on-year decline in profit side growth was mainly due to the impact of interest amortization under the new leasing standards, amortization of equity incentive expenses and amortization of interest on convertible bonds.
In 2022q1, the company realized revenue and net profit attributable to the parent company after deduction of non-profit of RMB 4.677 billion and RMB 396 million respectively, with a year-on-year increase of 15.22% and 16.93% respectively. Thanks to the stable control of the epidemic, the passenger flow of back door stores gradually recovered, the profit growth rate improved significantly month on month, and the performance growth was in line with expectations.
Stores expanded rapidly in 2021 and 2022q1, and gradually realized the nationwide layout of stores
By the end of 2021, the company had 8193 stores (including 935 franchise stores), including 903 self built stores, 748 M & A stores and 620 franchise stores respectively. The expansion of stores was in line with expectations. From the analysis of the regional distribution of stores, by the end of 2021, the number of stores in South China, East China, central China, northeast / North China / Northwest / southwest and other regions was 5980, 599, 961 and 653 respectively. The expansion of stores gradually realized the nationwide layout. 2022q1 company has realized 6 M & A businesses in the same industry, involving 305 stores. It is optimistic about the rapid expansion of the company's stores in 2022.
Investment suggestion: it is estimated that the net profit of the company from 2022 to 2024 will be 923 million yuan, 1108 million yuan and 1341 million yuan respectively, with a year-on-year increase of 16.7%, 20.0% and 21.1% respectively. The company is given the investment rating of buy-a.
Risk warning: store expansion is less than expected; The outflow of prescription drugs was less than expected; The risk of intensified industry competition;
