Dashenlin (603233): Q2 performance significantly accelerated again to verify the arrival of the turning point in 19 years
Event: On August 27, the company released its semi-annual report for 2019: the first half of 19 achieved revenue 52.
5.2 billion, an annual increase of 28.
65%; net profit attributable to mother 3.
8.1 billion, an annual increase of 32.
21%; deduct non-net profit 3.
7.3 billion, an increase of 33 in ten years.
93%; net cash flow from operations 5.
7.5 billion, an increase of 253 in ten years.
73 yuan / share.
The company’s profit growth in the first half of the year exceeded our previous expectations.
Q2’s performance has accelerated rapidly. It is verified again that the company’s revenue and profits have maintained rapid growth in the first half of the 19th year, and Q1 and Q2 have achieved revenues of 25 respectively.
7.8 billion (+26.
7.4 billion (+30.
51%); net profit attributable to mother 1.
8.4 billion (+25.
9.7 billion (+39.
52%); deduct non-net profit1.
7.7 billion (+27.
9.6 billion (+40.
Q1 started to increase compared to 18 years, and Q2 continued to speed up significantly, and once again verified the arrival of the company’s performance inflection point: the 1145 new stores in 16-17 are expected to enter the profit period in 19 years, and the proportion of new and old stores in 19The highest value in history (second new store revenue growth rate is the starting point in the life cycle of the store, the old store has the highest net interest rate), the proportion of old stores increased year by year in 19-21, and the performance is flexible.
The company’s net cash flow from operating activities increased by 253 compared with the same period last year.
06%, mainly due to capital investment brought by increased net profit and inventory optimization (such as effective control of procurement expansion).
In the first half of 19, the inventory turnover rate was 1.
63, the same period of earlier 18 years1.
36 has improved.
In terms of gross profit margin, the gross profit margin for the first half of 19 was 40.
00%, 41 earlier than the same period in 18 years.
67% fell slightly; net interest rate (attribution / income), 19 net interest rate 7.
25%, 7 in the earlier period of 18 years.
0% up 0.
The first is through the expansion of stores in various regions, further sharing of management costs, the simultaneous fermentation of brands and economies of scale, the company’s bargaining power in commodity procurement and sales cooperation has been greatly improved, and the acceleration of profitability has been accelerated.
The company’s ability to expand across provinces has gradually increased, and regional barriers to competition have continued to rise in the first half of the year. The company’s number of stores reached 4,153, with a net increase of 273 in the first half (129 in the first quarter and 144 in the second quarter).
Looking at the split, in the first half of the year, there were 313 new stores (156 new openings + 118 acquisitions + 39 joining), and a net increase of 273 stores (40 closed).
By quarter, Q1 and Q2 opened 104 and 52 new stores, acquired 51 and 67, closed 26 and 14, respectively. In the first half of the year, self-built stores accounted for 57% of new stores (excluding franchise), and Q2 may receive licensed pharmacists.The impact of the policy tends to be severe, and self-construction has made a difference.
In the second half of the year, the remote review party was gradually promoted, the industry purchase price fell, internal employees were encouraged to participate in the practising pharmacist exam, and 1 billion convertible bonds were in place., An average of 800,000 new construction / merger of a store).
In terms of different regions, the average effective monthly average efficiency of South China, East China and Central China increased by 1 compared with the same period last year.
69%, the average school in central China has grown significantly.
Among them, 164 were newly added in Guangdong, with an income growth rate of 22.
03%, 48 new companies in Guangxi, revenue growth of 48.
61%, the region outside Guangdong Province is in a period of rapid growth.
The company mainly builds itself in advantageous areas (Guangdong, Guangxi), re-integrates brand and scale advantages to quickly occupy the market, and has gradually covered most of the counties and towns in the two provinces.
In other regions, M & A and self-construction have taken a two-pronged approach. Guangxi, Henan, and Fujian have made significant breakthroughs in their regional performance. In the first half of the year, they entered Baoding, Hebei through acquisitions.
The number of medical insurance stores accounted for a slight decrease in 19H1, mainly due to the newly opened stores in the second half of last year. Stores can only apply for medical insurance qualification after operating for more than one year, temporarily reducing the proportion of medical insurance stores.
From the perspective of the retail subsidiary’s net profit in the first half of 19, Foshan Dashenlin 8.
88% (6 in 18).
92%), Shunde Dashen Lin 15.
11% (December 18.
86%), Maoming Dashen Forest 10.
09% (9 in 18).
17%), Zhanjiang Great Ginseng Forest 11.
55% (10 in 18).
51%), and the profitability has gradually expanded from 18, consolidating the regional leading advantage.
In 2019, the company started to develop franchise stores, and the 19H1 termination has gradually opened 39 franchise stores (13 in the first quarter + 26 in the second quarter), and the layout is accelerating.
Through unified brand identification, transportation management management, personnel training, commodity prices, and health service management, strengthening quality risk management and store compliance management will further increase the company’s scale and brand influence.
Actively undertake prescription outflows and bring about flexibility in performance. Under the background of prescription outflows, the company’s 19H1 prescription drug revenue accounted for 28%.
6%, year on year.
The number of medical insurance stores in 119H1 accounted for 76.
In terms of DTP, the company completed the establishment of a 35DTP professional pharmacy, and established a complete DTP professional pharmacy management system and team. The professional DTP management team works closely with leading prescription drug manufacturers. In terms of chronic disease management, the companyThe disease management special team implements customer file management, builds professional chronic disease service stores, and improves the ability of pharmacy services. In terms of the construction of prescription platforms, the company has already launched pilot prescription sharing platforms in Guangxi, Guangdong, and Henan provinces.Achievements have brought tremendous increase to the development of enterprises.
At the same time, the successful purchase of “4 + 7” cities with limited volume purchases has 武汉夜网论坛 limited impact on the company. The company reduced stock replacement by backing out and adjusting stocks, reducing prices and pushing down in affected areas, merging prices of different factories with the same name and the same name, and developing other growthThe number of varieties and other factors will further reduce the impact.
Profit forecast: The newly opened stores have gradually entered the profit period, with sufficient funds and great flexibility in performance. Therefore, the expected performance of 19 is raised, and the net profit for 2019-2021 is 7 respectively.
09,000 yuan, corresponding to PE is 39, 30, 23 times.
Maintain “Buy” rating.
Risk warning: Store performance after mergers and acquisitions is less than expected.