Yixintang (002727) 2019 Third Quarterly Report Review: Improving Dawn is now awaiting subsequent repairs
Event: The company released the third quarter report of 2019, and achieved revenue of 76 in 19Q1-3.
600 million (+15.
8%), net profit attributable to mother 4.
8.4 billion (+15.
Operating net cash flow 6.
3.3 billion (+151.
Revenue growth expectations and net profit growth are in line with our and market expectations.
Opinion: Self-built stores continue to expand, affecting subsequent expansion expectations.
The company built 595 new stores in 19Q1-3, relocated and closed 137 stores, and increased its net number of stores by 458. At the end of the period, the number of stores increased by 14%, replacing the 19H1 growth rate.
In the single quarter, there were 138 new stores in 3Q19, which significantly exceeded the 275 and 182 stores in 1Q19 and 2Q19, mainly due to the impact of conflicting review and adjustment of licensed pharmacist registration policies and the gap between licensed pharmacists in retail drug stores in the Midwest.
Considering that the company mentioned in its 2018 annual report that it plans to build 1,200 new stores in 2019, it is expected that the completion of the store opening plan will be difficult, and the store opening expectations are lowered.
As the company actively encourages employees to participate in licensed pharmacist exams through incentives and other incentives, and the company’s self-built remote review system has obtained the qualification of the remote review platform in Yunnan Province, we expect the company’s store opening progress to improve in 4Q19 and next year.
The rapid revenue growth and the increase in sales expense ratio in the third quarter of 1919 were mainly affected by the policy of licensed pharmacists.
The company achieved 26 in 3Q19.
0 million yuan, an increase of 11 in ten years.
8%, ranked 17th.
The 9% revenue growth has improved, mainly due to the adjustment of the license registration policy of licensed pharmacists, and the sales of prescription drugs have been disrupted.
Gross profit margin for the third quarter of 19 was 38.
8% for one year.
4天津夜网pp, mainly due to the strengthening of promotions to hedge against the impact of sales of prescription drugs.
In the third quarter of 19, the sales expense ratio was maximized2.
7pp to 27.
9% is also related to promotional expenses and incentives to encourage employees to take the licensed pharmacist exam; administrative expense rates continue to decline1.
4pp to 3.
9%, showing the company’s efforts to improve internal management.
Dawn of improvement is now awaiting follow-up repairs. Maintaining the “overweight” rating. Considering the expansion of stores and revenue growth exceeding expectations, but this year’s cost improvement is positive. We maintain the 19-year EPS forecast to 1.
05 yuan, down slightly by 20?
The 21-year EPS forecast is 1.
39 yuan (was 1).
54 yuan), the current price corresponds to 19?
The 21-year PE is 23/21/18 times.
The company’s operations are under the influence of the new policy of licensed pharmacists, but it has seen the dawn of gradual improvement and is waiting for subsequent repairs to maintain the “overweight” level.
Risk warning: The implementation progress of the practicing pharmacist adjustment policy exceeds expectations; operations outside the province are lower than expected.