Yifeng Pharmacy (603939): High-growth continuous performance in line with expectations

Yifeng Pharmacy (603939): High-growth continuous performance in line with expectations
Yifeng Pharmacy announced the third quarter of 2019 report on October 29, 2019.The company achieved revenue of 73 in the first three 南京夜网 quarters of 2019.89 ‰, an increase of 58 in ten years.36%; net profit attributable to mothers4.180,000 yuan, an increase of 35 in ten years.48%; net profit deducted from non-attributed mothers4.12 ppm, an increase of 42 in ten years.75%.The company’s overall performance was dazzling and in line with our expectations. Store expansion continued, with a total of 4,416 stores (including 335 franchisees).The company’s net increase of 289 stores, newly opened 211 stores (including 79 newly opened franchise stores), acquired 103 stores and closed 25 stores in the single quarter of 2019Q3.From a regional perspective, there were a net increase of 166 in Central and South China, 124 in East China, and 19 in North China, which still maintained relatively rapid growth.As of Q3 2019, the total number of stores in Central and South China 四川耍耍网 is 1979, in East China is 1896, and in North China is 541. The consolidation effect decays seasonally.Q1-Q3 revenue growth was 66.67%, 70.59% and 39.95%, non-profit growth rates were 47.98%, 45.57% and 32.82%.Hebei Xinxing Pharmacy’s weakening of the consolidation effect of quarterly replacement of income and profit growth, we expect endogenous to maintain a relatively rapid growth.The company’s gross profit margin for the first three quarters was 39.63%, a decline of 0 every year.86 points; selling expenses 25.69%, down by 1 every year.80 points; management costs 4.49%, rising by 0 every year.95pct; financial expenses 0.71%, rising by 0 every year.45pct; Net margin is 6.33%, a decrease of 0 per year.55 points. Earnings forecast: We expect net profit attributable to mothers to be 5 in 2019-2021.6.3 billion, 7.4.9 billion, 9.99 ppm, a year-on-year increase of 35%, 33%, 33%, the company’s EPS for 2019-2021 is 1, respectively.50 yuan, 1.99 yuan, 2.65 yuan.The corresponding PE for 2019-2021 is estimated to be 59X, 44X and 33X.Maintain the company’s “Highly Recommended” rating. Risk reminder: the acquisition is not progressing as expected; coupled with the profitability of internal department stores is less than expected; uncontrollable factors appear on the expense side.