Dashenlin (603233) Third Quarterly Report Review: Performance Meets Expectations M & A Promotion
I. Event Overview The company announced the third quarter report of 2019, and the company achieved revenue of 80 in the first three quarters of 2019.
400 million (+27.
7%), to achieve net profit attributable to mother 5.
5.6 billion (+34.
3%), net profit after deducting non-attribution is 5.
3.7 billion (+33.
Second, the analysis and judgment of performance are in line with expectations.
Gross profit margin for the first three quarters was 39.
5% (-2pp), sales expense ratio is 25.
7% (-2pp), gross margin decreased, and sales expense ratio increased, which is expected to be related to changes in accounting treatment, management expenses4.
2pp), a further manifestation of scale effects.
Net cash flow from operating activities increased by 118% over the same period of the previous year, mainly due to increased net profit and inventory turnover (a new store was built last year, which has a stock-holding effect on turnover) and account receivable turnover accelerated.
Q1, Q2 and Q3 achieved revenue of 25 in each quarter.
78 billion, 26.
7.4 billion and 27.
8.8 billion yuan in net profit attributable to mothers1.
84 billion, 1.
96 and 1.
Gross profit margin for the third quarter was 39.
5%, down from 0 in the second quarter.
9pp, which is expected to be related to the gradual increase in the proportion of prescription drugs, with a sales expense ratio of 26.
2%, an increase of 0 from the second quarter.
7pp, management expense ratio 4.
4%, an increase of 0.
4pp, which is expected to be related to the increase in new stores.
Self-built stores are 杭州夜网论坛 advancing steadily, and mergers and acquisitions are accelerating.
As of the end of the reporting period, the company had 4,256 stores and 432 new stores, of which 119 new stores were newly opened from July to September, and 0 were acquired.
In the first three quarters of 2018, there were 732 new stores (including 551 self-built and 181 mergers and acquisitions). The company’s self-built stores in 2019 will be more stable and profits will be released.
The company initiated 2 mergers and acquisitions from July to September, involving 94 stores.
At present, the price of mergers and acquisitions has fallen, the operating costs of small chains and individual stores have gradually increased, the intention to sell is strengthened, and the promotion of mergers and acquisitions has accelerated.
Third, investment recommendations We expect net profit for 2019-2021 to be 6, respectively.
9.1 billion, 8.
53 billion, 10.
3.4 billion, with annual growth rates of 30.
0%, 23.5%, 21.
2%, 2019-2021EPS are 1 respectively.
33 yuan, 1.
64 yuan, 1.
99 yuan, corresponding to the current sustainable 43 times, 35 times and 29 times PE.
Covered for the first time and given a “Recommended” rating.
4. Risk warning: M & A integration is lower than expected risk, extension and extension are lower than expected risk, and performance is uncertain.