Dashenlin (603233) 19Q1 Quarterly Report Review: Stores Continue to Expand and Operational Efficiency Improves

Dashenlin (603233) 19Q1 Quarterly Report Review: Stores Continue to Expand and Operational Efficiency Improves

Event: The company announced the 2019 first quarter report, reporting a series of realized operating income25.

780,000 yuan, an increase of 26 over the same period last year.

77%; net profit attributable to mother 1.

840,000 yuan, an increase of 25 over the same period last year.

20%; deduct non-attributed net profit1.

77 ppm, an increase of 27 over the same period last year.


The number of stores exceeded 4,000, and the industry’s mergers and acquisitions steadily advanced to the end of the first quarter of 2019. The company has a total of 4,009 stores, including 3,996 directly-operated stores and 13 franchised stores (and more new reports).

The number of reports added 155 stores (104 newly 南京夜网 opened stores, 51 acquired stores), 26 closed stores, a net increase of 129 stores.

A total of 6 merger and acquisition investment businesses in the same industry have been reported in emerging companies, including companies such as Guangdong Kangyibai Pharmaceutical, Baoding Shengshi Huaxing, Guangzhou Baihe and pharmacy chains. Steady progress in industry mergers and acquisitions has contributed to thickening company performance.

The ability to control expenses remained stable, and the efficiency of operations in different locations improved the company’s expenses during Q1. 29

53%, a decline of 0 every year.

79 points.

Among them, the sales / management / financial expense subsidy is 25.

20% (-0.

62pct), 4.

12% (-0.

04pct), 0.

21% (-0.

13 pct), all of which are slightly incorporated, and the company’s overall fee control ability has steadily increased.

In terms of operating efficiency, the company’s main area is divided into southern China with the 18-year annual report, because the average monthly average efficiency of added pharmacies has gradually shifted to 2699.

84 yuan / square meter.

However, the company’s operating efficiency in different places has significantly improved, and the average monthly average efficiency in East China and Central China was 1792.

95 (+130.

88) yuan / square meter and 1886.

09 (+158.

72) Yuan / sqm, the stores expanded in different places gradually entered the mature period.

The issuance of 1 billion convertible bonds provides protection for multi-dimensional construction. The company is allowed to issue 10 trillion convertible bonds. It is the largest of the four listed retail drug stores.

The company intends to use the raised funds for the operation center construction project, the Yulin Modern Drink Piece Base Project and the direct chain store construction project.

The issuance of large convertible bonds can provide sufficient funds for the company’s multi-dimensional development, and provide support for the company’s subsequent expansion in different locations and the development of high-margin products.

Investment advice and profit forecasting companies have taken root in the two regions of Guangdong and Guangxi, and the speed of expansion in other places has improved.

Refined management ensures stable operating efficiency.

It is expected that the company’s operating income for 19-21 will be 106.



1.8 billion, net profit attributable to mother 6.


08/9.9.6 billion.

The corresponding EPS is 1.



49 yuan / share, corresponding to PE is 28/23/19 times, given a target price of 53.

12 yuan to maintain the “overweight” level.

Risks suggest that industry competition is intensifying, mergers and acquisitions have failed, and industry policies have changed.