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Ordinary people (603883): Achievements in line with expectations Store rapid layout

Ordinary people (603883): Achievements in line with expectations Store rapid layout
Ordinary people announced the third quarter of 2019 report on October 30, 2019.The company achieved revenue of 83 in the first three quarters of 2019.70 ppm, an increase of 23 in ten years.59%; net profit attributable to mothers3.94 ppm, an increase of 21 in ten years.44%; net profit deducted from non-attributed mothers3.72 ppm, an increase of 20 in ten years.62%.The overall performance is in line with our expectations. The number of stores has reached 4579, new mergers and acquisitions continued, and franchise stores accelerated.As of the third quarter of 2019, the company has 4,808 stores, including 3,756 directly-operated stores and 1,052 franchised stores.Among the directly-operated stores, 389 new stores were newly built in the first three quarters, 147 stores were acquired, and 69 were closed; 477 new stores were added.From a regional perspective, the distribution of direct-operated stores is still focused on Central and East China. There was a net addition of 161 in Central China, reaching 1198 at the end of the period; a net addition of 170 in East China, reaching 1222 at the end of the period; the rest of the region still maintained steady expansion. Drugs maintained rapid growth, and the impact of Chinese medicine and non-medicine policies gradually weakened and stabilized. In terms of categories, the company’s Chinese and Western medicines achieved revenue of 65北京夜生活网.25 ppm, an increase of 27 in ten years.44%, gross margin is 29.48%, a decrease of 0 every year.04pct; Chinese medicine realized income 6.66 ppm, an increase of 16 in ten years.57%, gross margin is 52.12%, a year to raise 0.39 points, a faster growth rate than the first half of the year; non-pharmaceuticals realized revenue9.37 ppm, a ten-year increase of 8.46%, gross margin is 47.52%, a decrease of 1 per year.33pct, policy impact weakened in the first half of the year. Profit margins remain stable.The company’s single quarter revenue Q1-Q3 growth rates were 23 respectively.37%, 26.03% and 21.48%, the growth rate of non-returned mother’s profit was 16 respectively.01%, 25.20% and 22.50%.The company’s net profit for the first three quarters was 5.57%, increasing by 0 every year.01pct; where gross margin is 33.89%, a decrease of 0 every year.23pct, mainly affected by the proportion 佛山桑拿网 of non-medicine sector; sales expenses reset 21.84%, down by 1 every year.00pct; overhead costs 4.51%, a decrease of 0 every year.10pct. Earnings forecast: We expect net profit attributable to mothers to be 5 in 2019-2021.2.9 billion, 6.5.7 billion, 8.12 trillion, a year-on-year growth of 22%, 24%, 23%, the company’s EPS for 2019-2021 is 1.86 yuan, 2.31 yuan, 2.85 yuan.The corresponding PE for 2019-2021 is estimated to be 36X, 29X and 24X.The company is a leading drugstore company expanding nationwide. The number of merged stores has continued to grow rapidly, and the merger and acquisition integration capability is strong, maintaining the company’s “highly recommended” level. Catalyst ahead of schedule: The pace of new construction and mergers and acquisitions has increased, and the risk of upgrading the prescription outflow policy has prompted: the store opening plan has fallen short of expectations; coupled with the profitability of internal department stores has fallen short of expectations; uncontrollable factors appear on the expense side.