Ordinary people (603883): Q2 performance improved month-on-month, strategic shift to regional focus

Ordinary people (603883): Q2 performance improved month-on-month, strategic shift to regional focus
The event company released the semi-annual report for 2019. In the first half of 2019, the company realized operating income, net profit attributable to mothers and net profit after deductions were 55.3.4 billion, 2.$ 7 billion and 2.55 ppm, an increase of 24 each year.71%, 22.08% and 19.78%, achieving a budget benefit of zero.95 yuan, on the one hand, operating cash flow1.55 yuan, in line with our Air Force expectations. Brief comment on the continuous advancement of new construction and mergers and acquisitions, driving the company’s performance growth.0.6 million yuan, an increase of 26 in ten years.03%, net profit attributable to mother 1.110,000 yuan, an increase of 22 in ten years.01%, deducting non-attributed net profit 1.100,000 yuan, an annual increase of 25.20%.In Q2, the company’s revenue growth rate increased by 2 quarter-on-quarter.With 66 digits, the growth rate of net profit after deducting non-attribution increased by 9 from the previous month.In 19 units, mainly due to the increase in sales revenue and the small decrease in sales expense ratio, the company turned to regional focus in 19, and the effect of refined management was significant.The increase in growth rate in Q2 drove the company’s H1 performance growth. In the first half of 2019, the company added 428 directly-operated stores, including 292 new stores, 136 merged and acquired stores, 44 closed stores, and a net increase of 384 stores. East and Central China are the key expansion areas (154 net increase stores)., 124), the total number of directly operated stores reached 3673, 906 franchise stores, a total of 4,559, due to the substantial increase in the number of franchised stores, the number of directly operated stores decreased to 80%.Overall, the company ‘s self-built and M & A dual-wheel drive expansion model has driven performance growth; 19H1 ‘s expansion rate is basically the same as 18H1 ‘s, and we estimate that: 1) H2 ‘s self-construction strength has increased; 2) after H1 negotiations, some M & A expectationsSigned and landed at H2. The store floor efficiency has picked up, and the trend of prescription outflows has improved operating efficiency. Since 2018, the company’s expansion has accelerated (concentrated in small and medium-sized stores and large stores). As new stores are still in the process of cultivating period-level M & A stores, the overall average floor efficiency is lowered.,2019年上半年公司旗舰店,大店,中小成店及综合日均坪效分别为131、69、40、51元/平方米,2019H1扩张步伐基本持平,公司坪效较Q1已改善回升 处方The outflow trend is obvious: 1) In terms of operating varieties, Chinese and western patent medicines are the main operating varieties of the company, and the sales proportion in the first half of 2019 is 80%. The company’s sales of various categories are generally stable, and no major changes have occurred in the product structure. However, through the outflow of hospital prescriptions, the proportion of prescription drugs in Chinese and western patent medicines has gradually increased; 2) Due to the change in medical insurance policies, restrictions on non-drug display cabinets have causedNon-pharmaceutical sales of crude oil. The increase in the proportion of prescription drugs affects the gross profit margin. The remaining financial indicators are basically normal. In the first half of 2019, the company’s comprehensive gross profit margin was 34.12%, a decrease of 1 per year.74 singles, mainly due to the company’s increased promotional efforts, the proportion of prescription drugs increased, the proportion of low-gross medicine 北京桑拿洗浴保健 wholesale business increased, and small-scale taxpayer reforms.Selling costs CO2 21.72%, a decline of 0 per year.For 82 units, the management expense ratio was 4 in 2018.77%, a decrease of 0 every year.There are 17 single ones. On the whole, the company’s expansion at the same time has a significant effect on control fees; accounts receivable and bills receivable have increased slightly and are basically stable; net cash flow from operating activities has increased by 21.14%, mainly due to increased operating income.The remaining financial indicators are basically normal. Earnings forecast and investment rating We expect the company to achieve operating income of 118 in 2019-2021.1.5 billion, 147.05 ppm and 183.04 million, net profit attributable to mothers was 5.3.1 billion, 6.51 ppm and 7.950,000 yuan, an increase of 22 each year.1%, 22.6% and 22.2%, equivalent to 1, respectively.86 yuan / share, 2.28 yuan / share and 2.79 yuan / share, corresponding to PE of 29.5X, 24.1X and 19.7x, maintain BUY rating. Risk analysis Risk of policy changes in the industry; market competition intensifies; scale expansion progress fails to meet expectations; M & A store integration fails to meet expectations; goodwill impairment accruals;