Dashenlin (603233) annual report tracking: rapid expansion of stores is expected to release future performance

Dashenlin (603233) annual report tracking: rapid expansion of stores is expected to release future performance


Event: The company released its 2018 annual report.

The company achieved revenue of 88 in 2018.

590,000 yuan, an increase of 19 in ten years.

38%; net profit attributable to shareholders of listed companies5.

32 ppm, an increase of 11 in ten years.

93%; Realize net profit deduction 5

09 million yuan, an increase of 7 in ten years.

59%, achieving EPS1.

33 yuan.

The company’s stores expanded rapidly, and its revenue maintained rapid growth.

As of the end of the reporting period, the company had a total of 3,880 stores, a net increase of 895 stores over the previous year.

Among them, there were 701 self-built stores, 266 acquired stores, and 72 closed.

Benefiting from the expansion of the company’s stores, the company achieved revenue growth19.

38%, revenue maintained rapid growth.

The company has a total of 3,018 medical insurance stores. This year, 687 new medical insurance stores were added. The total number of medical insurance stores accounted for 77 of the company’s total drug stores.


Affected by the cost of new stores, the company’s profitability declined.

The company’s profit growth rate is not as fast as its revenue growth rate, mainly due to the rapid expansion of store layout, new store attraction and promotional activities.

The reported number, the company’s sales expense ratio was 28.

07%, an increase of 2 per year.

16 units; management expense ratio 4.

69%, a slight increase of 0 a year.

02 units; financial expense ratio is 0.

36%, a slight increase of 0 a year.

01 averages.

The company’s management expenses and financial expenses as a percentage of revenue remained stable, and only sales expenses increased.

By quarter, the company’s Q1-Q4 revenue exceeded the growth rate of 17 respectively.

11% / 16

12% / 23.

24% / 20.

67%, stable growth performance.

The company’s Q1-Q4 net non-homing net profit growth rate was 16 each year.

54% / 5.

67% / 4.

13% / 3.

71%, with a net interest rate of 7.

16% / 6.
81% / 5.
62% / 4.

53%. The company’s revenue growth accelerated in the second half of the year, but the increase in profit growth was mainly due to the company’s active implementation of the expansion strategy outside the province, which may be caused by new stores.


Our Analysis and Judgment (I) The expansion efforts have not diminished. We will continue to strengthen the concentration of advantageous areas. Self-construction and mergers and acquisitions will lead to rapid expansion of stores.

As of the end of the reporting period, the company has opened a total of 3,880 stores and has directly operated stores.

A total of 967 new stores (including 701 self-built and 266 acquired), 72 closed, and a net increase of 895 were reported in the report.

The company’s stores have maintained rapid expansion. In addition to building its own stores, the company’s acquisition expansion has also strengthened.

In 2018, the company had 14 M & A investment businesses in the same industry, of which 8 were wholly-owned or holding acquisition projects involving 146 stores (including 57 undelivered stores); 6 investment projects with equity participationThe cost is 8,232.

720,000 yuan.

In addition, the company also plans to launch a franchise model to build brand influence as soon as possible.

Continue to cultivate key areas and improve the advantages of concentration.

The company is deeply cultivating in South China, taking into account both Central and Eastern China.

Among the company’s new 967 stores, 707 are located in South China, 137 are located in Central China, and 123 are located in East China.

The company’s operating scale in South China is mature, and the average monthly average efficiency is far higher than that of East and Central China, but the growth rate is not as good as that of East and Central China.

Due to the scale of newly opened stores, the monthly average efficiency of the three major regions of the company declined continuously.

The major companies in the report focused on promoting the layout of stores in Guangxi and Henan. Among them, 243 stores were newly added in Guangxi, and operating income increased by 37.

41%; Henan has 137 new stores, and its operating income increases by 36 each year.


Although the company’s operations in South China are relatively mature, it continues to strengthen South China’s expansion, increase concentration, and strengthen industry barriers.

(2) The impact of price reduction in 4 + 7 episodes is limited, and the right of retail pharmacies to increase the price reduction in 4 + 7 episodes is limited. Many suppliers agree to compensate.

At present, among the company’s main business locations, Guangzhou and 苏州夜网论坛 Shenzhen are pilot cities for 4 + 7 centralized volume procurement. The price reduction of drugs has a slight impact on the performance of local stores.

The revenue of stores in Guangzhou area was affected by 4 + 7 episodes of mining 360,000 yuan, and the stores of Shenzhen were affected by 4 + 7 episodes of mining 30,000 yuan, the overall impact is small.

The company has completed the cost adjustment or return of some varieties, and lowered prices in the affected areas.

In addition, the company’s procurement team and manufacturers have conducted in-depth communication. At present, 50-60% of the suppliers have promised to compensate the price difference according to the bid price in the hospital.

The 4 + 7 episodes have long-term favorable retail terminal voice, and the impact of pharmacies’ sharing of price cuts is 淡水桑拿网 limited.

Although the reduction in the prices of concentrated procurement items will affect performance in the short term, it will be beneficial to the “outflow of prescription drugs” in the long run, and the retail pharmacy will have a stronger say.

Along with the unsuccessful bidders to actively develop channels and the bargaining power of large chain retail pharmacies to increase, manufacturers will inevitably change their retail terminals to supplement and replace the adverse effects of price reductions. The impact of drug price reductions on retail pharmacies is bound to be limited.

(3) Adjust business structure, improve product competitiveness, optimize the layout of health categories, and increase growth of non-drugs.

In the total number of reports, the company’s non-pharmaceuticals grew better, with revenue growing 27.

54%. The rapid growth of non-pharmaceuticals with high gross profit improved the overall gross profit margin of the company’s products.

The rapid growth of non-pharmaceuticals is mainly due to the company’s optimization of the layout of the large health industry, strengthening the development of health-related categories linked to drugs, and improving the sales promotion of large health categories through accurate member marketing functions.

In addition, the company strengthened in-depth cooperation with some brand manufacturers, and obtained more cooperation resources from suppliers through the continuous increase in sales scale, thereby improving the gross profit margin of all categories.

The company has also formulated the strategy of discovering incremental and incremental varieties, implementing the product strategy of “strengthening categories and making large and small categories”, and successfully doubling the sales of at least 8 small categories. Promoting DTP and chronic disease management and other businesses, and actively undertakePrescription drug outflow.

The report summarizes that the company has completed the construction of 30 DTP professional pharmacies, and has established a complete DTP professional pharmacy management system and a professional DTP management team.

In terms of chronic disease management, the company has established a special disease management team to implement customer file management and build professional chronic disease service stores.

The company actively participates in promoting the construction of prescription sharing platforms in key cities. At present, the company has completed the connection of supplementary prescription sharing platforms in Guangxi, Guangdong and Henan provinces, providing incremental development for enterprises.

(4) The company’s estimate is reasonable. The prospect of the retail pharmacy industry can last until April 24, and the company’s price-to-earnings ratio (TTM) is 34.

90, out of four listed retail pharmacy companies, higher than Yixintang (32.

00), lower than Yifeng Pharmacy (47.
95) and the common people (37.

Considering that the company’s new store performance is expected to be released in the future, we think the company’s current estimate is reasonable and has investment value.

In addition, the outlook for the retail pharmacy industry is long-term positive.

Expansion, the concentration of domestic retail pharmacies is still low, leading pharmacies are expected to increase the market share by the trend of pharmacy chain.

As of 2017, the retail market share of the six national drugstore leaders was only 12.

7%, and the elongation from the foreign level.

At the same time, the “outflow of prescription drugs” is expected to bring a huge increase to the retail pharmacy industry.

Policy recommendations such as “zero markup” and “separation of medicines” guide the flow of prescription drugs from hospital terminals to retail pharmacies. Centralized volume purchases of unsuccessful bids also need to open channels from retail pharmacies.

We believe that the company, as one of the leading retail pharmacies, has broad prospects for future growth.


Investment recommendations We are optimistic about the company’s growth prospects and the potential for new store profits to gradually release.

First, we are optimistic about the company’s potential for aggressive expansion.

As one of the leading pharmacies, the company has the potential to further increase regional concentration.

First, we are optimistic about the gradual release of future company performance.

Although the company’s profit growth is currently affected by store opening costs, the company’s profit level is expected to improve in the future by increasing store performance.

We forecast the company’s net profit attributable to its mother to be 6 in 2019-2021.



4.7 billion yuan, corresponding to an EPS of 1.



87 yuan, corresponding to PE is 29.



00 times.

Maintain the “Recommended” level.


Risk prompts the risk of rapid expansion leading to higher-than-expected expenses, industry policy risks, and increased market competition risks.