Dashenlin (603233) comment report: Stores continue to expand and mergers and acquisitions have gradually strengthened Q1 2019 performance by 25% high growth

Dashenlin (603233) comment report: Stores continue to expand and mergers and acquisitions have gradually strengthened Q1 2019 performance by 25% high growth

Event: On April 29, 2018, the company released its 2019 first quarter performance report: The company achieved revenue of 25 in Q1 2019.

780,000 yuan, an increase of 26 in ten years.

77%; net profit attributable to mothers1.

840,000 yuan, an increase of 25 in ten years.

20%; net profit after deduction of non-return to mother1.

770,000 yuan, an increase of 27 in ten years.

58%.

Comments: Stores continue to expand, Q1 2019 revenue growth: Q1 2019 company revenue 25.

780,000 yuan, an increase of 26 in ten years.

77%, revenue growth is mainly due to the continued expansion of stores, in Q1 2019, 155 new stores were opened, of which new stores opened, acquired stores, the number of closed stores were 104, 51, 26.

In Q1 2019, the company’s overall gross profit margin was 39.

63%, a year up 0.

86%

The gross profit margin remained stable.

The company’s period expenses are stable and the store operation efficiency is high: the operating expense budget, the company’s period expenses in Q1 201929.

53%, a decline of 0 every year.

79 pct.

.
Among them, the sales expense ratio, management expense ratio and financial expense ratio are 25 respectively.

20% (-0.

62%

), 4.

12% (-0.

04 pct.

), 0.

21% (-0.

13 pct.

), The expense rate remains stable during the period.

Operating efficiency coefficient, the 杭州桑拿 company’s overall store average monthly efficiency is 2530.

55 yuan / square meter.

Among them, South China, East China, and Central China each had an average Ping effect of 2669.

84 yuan / square meter, 1792.

95 yuan / square meter, 1886.

09 yuan / square meter, the store operation efficiency is high.

Continue to promote internal and external mergers and acquisitions in the province. Outward mergers and acquisitions continue to increase the company’s performance: In Q1 2019, the company acquired 6 targets, and acquired Guangdong Kangyibai Pharmaceutical, Baoding Shengshi Huaxing Pharmaceutical Chain, Guangzhou Baihe Pharmacy Chain, and Liyang Jishi.Jianmin Pharmacy, Yangchun Bafang Pharmacy, and Yangjiang Renxin Pharmaceutical. Outward mergers and acquisitions will continue to increase the company’s performance 重庆耍耍网 after 2018.

Earnings forecast and estimation Based on the company’s current business situation, we estimate the company’s EPS in 19-21 is 1.

66, 2.

00, 2.
39 yuan, corresponding to 28, 23, 19 times PE, maintaining the “strongly recommended” level.

Risk warning: store expansion exceeds expectations; risk of national policy changes; market competition intensifies.