\u3000\u3 Shengda Resources Co.Ltd(000603) 939 Yifeng Pharmacy Chain Co.Ltd(603939) )
The company issued 2021 annual report and 2022 first quarter report. In 2021, the company achieved a revenue of 15.326 billion yuan, a year-on-year increase of 16.60%, a net profit attributable to the parent of 888 million yuan, a year-on-year increase of 19.42%, and a net profit attributable to the parent of 859 million yuan after non deduction, a year-on-year increase of 20.30%. In Q4 single quarter, the revenue was 4.388 billion yuan, a year-on-year increase of 18.35%, the net profit attributable to the parent was 192 million yuan, a year-on-year increase of 12.46%, and the net profit attributable to the parent after deduction was 177 million yuan, a year-on-year increase of 5.24%. In 2022q1, the company achieved a revenue of 4.148 billion yuan, a year-on-year increase of 14.29%, a net profit attributable to the parent of 272 million yuan, a year-on-year increase of 12.82%, and a net profit attributable to the parent of 266 million yuan after non deduction, a year-on-year increase of 14.12%.
The company’s annual report and the first quarterly report are in line with expectations. Under the disturbance of epidemic prevention and control, the performance of Q4 and Q1 of the company is in line with market expectations. Later, we split the revenue of the company’s annual report and quarterly report from the business level and product level. At the same time, we combed in detail the expansion of the company’s stores, mergers and acquisitions, the proportion of medical insurance stores, member sales, efficiency, financial indicators and other dimensions.
Re combing the investment logic: 1) under the strategic deployment of “regional focus and steady expansion”, the company further consolidated the markets in central and South China and East China, and the cross regional store network is becoming more and more mature. The company is the leader of drugstores. The growth rate of revenue side and profit side is stable. The growing scale effect also improves the bargaining power of the company, reduces the logistics and control costs, and ensures the continuous growth of the company’s profitability. 2) New retail is developing rapidly and continues to undertake the outflow of prescriptions. The company started the pharmaceutical e-commerce business in 2013, established the e-commerce business group in 2016, upgraded to a new retail business group in 2019, and set up various new retail business line business departments such as e-commerce business department, smart medical business department and member development business department. With CRM and big data as the core and Internet medical treatment and prescription circulation as innovation, the company created a new pharmaceutical retail business with Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integrated development. With the help of the company’s supply chain advantages and refined operation, under the strategic layout of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) omni-channel undertaking prescription outflow, the company’s performance is expected to continue to improve.
Profit forecast. Regardless of the future large-scale acquisition and consolidation, we expect the net profit attributable to the parent company in 20222024 to be RMB 1.087 billion, 1.340 billion and 1.653 billion, with a year-on-year increase of 22.4%, 23.3% and 23.3%, corresponding to PE of 22x, 18x and 15x. As a leading drugstore enterprise, the company currently has a good valuation cost performance and maintains the “buy” rating.
Risk tip: the cost control policy of medical insurance exceeded expectations, and the multi-point spread of the epidemic intensified.
