Yifeng Pharmacy (603939) 19th Half-yearly Report Review: Accelerating Expansion Without Obstructing Efficient Operation New Capital Will Continue to be Injected

Yifeng Pharmacy (603939) 19th Half-yearly Report Review: Accelerating Expansion Without Obstructing Efficient Operation New Capital Will Continue to be Injected
Event: The company announced the 2019 semi-annual report, and the company achieved operating income of 50 in the first half of 2019.480,000 yuan, an increase of 68 over the same period last year.65%; net profit attributable to mother 3.08 million yuan, an increase of 36 over the same period last year.78%; net profit of non-attributed mothers2.0.6 million yuan, an increase of 46 over the same period last year.69%. The 四川耍耍网company announced plans for the issuance of ultra-short-term financing bonds and convertible bonds, and plans to issue no more than 10 billion ultra-short-term financing bonds and no more than 15.81 trillion convertible bonds. The growth rate of stores restarted the acceleration mode. The performance of emerging pharmacies was dazzlingly reported. The company net added 516 stores, of which 368 were newly opened stores (including 87 new franchise stores), 204 stores were acquired, and 56 were closed.As of the end of the reporting period, the company had a total of 4,127 stores (including 256 franchise stores), with a growth rate of 54 in ten years.9%, compared with 43 in the earlier quarter.The growth rate of 96% increased significantly.The performance of the emerging pharmacy acquired by the company in 18 years has obviously improved, and it has achieved operating income by the end of the reporting period5.770,000 yuan, net profit of 46.7 million yuan, has completed the expected net profit performance commitment of 84.5 million yuan 55.27%. The integration of old stores is progressing steadily. The operating efficiency continues to improve. The company is expanding rapidly while strengthening internal integration. A sophisticated management team is established to upgrade and upgrade old stores and stores after mergers and acquisitions. The operating efficiency continues to improve.The overall average efficiency of the core companies reported was 62.39 yuan / square meter, an increase of 1 from 2019Q1.54.Among them, the flagship store and the medium-sized community store showed the most obvious improvement in efficiency, rising by 11 respectively.1% and 6.67%. The issuance of convertible bonds and ultra-short-term financing bonds is imminent. The future expansion guarantees that the company is expected to issue ultra-short-term financing bonds of no more than US $ 1 billion to meet the daily working capital requirements, and plans to issue no more than 15.81 trillion convertible bonds, used to build Jiangsu, Shanghai sorting centers and new chain drug store projects.If the funds are strictly used, the company can get a maximum of 20.700 million funds, calculated based on the initial budget of 500,000 per store, can support the expansion of more than 4,000 stores in the future. Investment advice and profit forecast The development of the company’s refined management capabilities, the performance is expected to continue to maintain high growth under the injection of new funds, the company’s profit forecast is raised, and the operating income is expected to be 100 in 2019-2021.44/129.92/167.7.3 billion, the net profit attributable to mothers was fine-tuned to 5.79 (+0.03) / 7.72 (+0.06) / 10.27 (+0.22) 100 million yuan.The corresponding EPS is 1.54 (+0.01) / 2.05 (+0.02) / 2.杭州桑拿网 73 (+0.06) Yuan / share, corresponding to PE of 48/36/27 times, raise target price to 89.32 yuan, maintain “Buy” rating. Risks suggest that industry competition is intensifying, mergers and acquisitions have failed, and industry policies have changed.

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