Yixintang (002727): The impact of the practising pharmacist drags the 南京夜网 current performance of H2 and gradually recovers
The event company released the semi-annual report for 2019. In the first half of 2019, the company realized operating income, and the net profit attributable to the parent and the net profit after deduction were 50.
6 billion, 3.
3.7 billion and 3.
3.5 billion, an increase of 17 each year.
31% and 15.
09%, achieving a profit of 0.
59 yuan, 0 for any operating cash flow.
53 yuan, lower than our democratic expectations.
A brief comment on Q2 was affected by the additional influence of licensed pharmacists, which dragged down the current performance. Q2 achieved a single quarter of operating income.
72 ppm, an increase of 17 in ten years.
00%, net profit attributable to mother 1.
62 ppm, an increase of 0 in ten years.
48%, deducting non-net 杭州桑拿 profit1.
6.2 billion, an annual increase of 2.
The growth rate of net profit attributable to mothers in 19H1 was 15.
31%, a compound growth rate of the company’s attributable net profit from 2014 to 2018 of 15.
Q2 single-year return to mother net profit for ten years.
The 48% increase was mainly due to: 1) Q2’s strict inspection of licensed pharmacists brought about an increase in the labor cost of licensed pharmacists and sales of some prescription drugs; 2) Increased promotional efforts resulted in lower gross profit margins, higher sales expenses, and lower net interest rates.
At present, the Yunnan Province long-distance review party policy has been officially implemented on August 5. The problem of reducing the number of licensed pharmacists in memory stores in the province has basically been alleviated, and Q3 is expected to usher in recovery.
Licensed pharmacists limit Q2 store expansion, and the scale outside the province continues to expand. Due to the decrease in the number of licensed pharmacists, which limits the company’s self-built store expansion speed, Q2 saw a net increase of 124 stores in a single quarter.
In the first half of 2019, the company built 457 stores by itself, closed 27 stores considering profitability, and relocated 59 stores to optimize its layout. The total number of stores was reduced by 86, and the total number of stores increased by 371, of which 188 in Yunnan increased by 188, and Sichuan and Chongqing increased.There was a net increase of 83, a net increase of 40 in Guangxi, a net increase of 17 in Hainan, a net increase of 24 in Shanxi, a net increase of 16 in Guizhou, a net increase of 3 in Henan, and a total of 6,129 stores.
The proportion of stores outside the province further increased to 38.
86%, the pattern outside the province continued to expand.
Three-dimensional expansion layout. When the county and township stores have the best operating efficiency, the company adopts a relatively three-dimensional development approach when setting up its stores. It has opened stores in the provincial capital, cities, counties, and townships.
As of the end of June 2019, the company has more than 1,000 market stores in the four types of provincial capital, prefecture-level, county-level, and township levels, forming a unique city-county-country integrated development pattern.
Provincial capital and prefecture-level stores form a central radiation from the dimensions of brand, goods, services, logistics, etc., and play a guiding role in the consumption of the county market population, which is more conducive to the establishment of competitive barriers and cost advantages at all levels of the market.
In the future, through the sink of the pharmaceutical retail industry channel and the wave of urbanization of the rural population, the market will be concentrated in third- and fourth-tier cities and county markets. The company’s three-dimensional layout has huge market potential.
Promotions led to a decline in gross profit margin, Q2 single-quarter sales expense ratio increased, cash flow improved, and the remaining financial indicators were basically normal. In the first half of 2019, the company’s gross profit margin reached 38.
79%, a decrease of 3 per year.
03 single, mainly due to the increase in price reduction promotions; Q2 single season sales expenses reset 27.
76%, a quarter-on-quarter increase of 2 from the first quarter.
With 21 averages, H1’s overall selling expense ratio is basically stable at 26.
Management expenses 3.
69%, an increase of 0 every year.21 units, the management costs are basically stable.
The financial expense ratio reaches zero.
16%, a decline of 0 every year.
Accounts receivable decreased by 11 each year.
05%, bills receivable fall by 64 every year.
48%, mainly due to strengthened communication with the Medical Insurance Bureau, medical insurance returns are better; the net cash flow from operating activities increased by 570 per year.
70%, mainly due to the increase in the amount of medical insurance payments each year.
The remaining financial indicators are basically normal.
Earnings forecast and investment rating We have lowered our earnings forecast. It is estimated that the company’s operating income for 2019-2021 will be 107.
3.6 billion, 128.
8.7 billion and 155.
6.6 billion, net profit attributable to mothers was 6.
0.9 million yuan, 7.
4 billion and 9.
00 ppm, an increase of 17 each year.
5% and 21.
6% (Originally expected to return to the mother’s net profit was 6 respectively.
44 billion, 7.
92 billion, 9.
5.9 billion, corresponding to a growth rate of 24%, 23%, 21%), equivalent to EPS of 1.
07 yuan / share, 1.
30 yuan / share and 1.
59 yuan / share, corresponding to an estimated 24.
5X and 16.
8x, maintain BUY rating.
Risk analysis Medical insurance policies are becoming stricter; store expansion progress is expected to exceed expectations; store profitability is declining; prescription outflow progress is gradually expected;