Yixintang (002727) Semi-annual Report Review: The main scale of self-built stores has steadily increased

Yixintang (002727) Semi-annual Report Review: The main scale of self-built stores has steadily increased

The scale of operation accelerated and the scale performance continued to rise steadily. In the first half of 2019, the company achieved operating income of 50.

60,000 yuan, an increase of 17 in ten years.

9%; net profit attributable to mother 3.

37 ppm, an increase of 15 in ten years.

31%, net profit after deduction to mother 3.

35 ppm; 15 years increase.

09%, the company’s revenue and profit growth in the first half of 2019.

The report communique stated that the company’s net cash flow from operating activities was 3.

10,000 yuan, an increase of 570 in ten years.

7%, which is mainly due to the report that the amount of reimbursement of medical insurance payments increases every year; the expected average return on net assets is 8.

11%, an increase of 0 every year.

49 units.

In terms of quarters, the company achieved operating income of 24 in the second quarter of 2019.

72 ppm, a year-on-year increase of 17% and a month-on-month decrease of 4.

48%, net profit attributable to mothers1.

62 ppm, an increase of 0 in ten years.

48%, ring-on-epoxy 7.


The company’s direct-operated chain store pharmaceutical sales revenue as the main source of company revenue continued to grow is the company’s leading growth in the first half of 2019.

With the joint efforts of both businesses, the company’s multi-regional development in terms of products in different regions shows that in the first half of 2019, the company achieved revenue from Chinese and Western medicines37.

10,000 yuan, an increase of 23 in ten years.

75%, medical equipment and family planning, disinfection supplies 3.

USD 4.7 billion, an annual increase of 12.

44%, Chinese medicine income 3.

950,000 yuan, an increase of 13 in ten years.


In view of different industries, the company realized retail income47.

78 ppm, an increase of 17 in ten years.

91%, wholesale income1.

610,000 yuan, an increase of 32 in ten years.

15%, other business income1.

21 ppm, a 10-year increase2.

73%, in terms of regions, the Southwest region achieved income 42.

40,000 yuan, an increase of 18 in ten years.

58%, South China 4.

93 ppm, an increase of 10 in ten years.

76% in North China 2.

23 ppm, an increase of 32 in ten years.7% in Central China and East China are 0.

13, 0.

30,000 yuan, 0 in overseas areas.

360,000 yuan, an increase of 557 in ten years.


In terms of online sales, from January to June 2019, the transaction volume of e-commerce business was zero.

4 trillion, of which the transaction value of third-party sales platforms is 965.

110,000 yuan.

At present, the company has formed a southwest as the core business area, south China as a strategic and deep business area, and north China as a supplementary business area.

From the point of view of operating stores, as of June 30, 2019, the company has 6,129 chain stores, with direct sales networks covering 10 provinces and municipalities, and stationed in more than 280 cities at or above the county level.

By region, the company has 3747 stores in Yunnan, accounting for about 61%; Sichuan has 744 stores (12%); Guangxi and Shanxi have 584 and 348 stores, respectively.They accounted for 10% and 6%, respectively.

The number of stores in Hainan, Guizhou, Chongqing, Shanghai and Tianjin is 242, 222, 210, 9 and 8 respectively.

From the perspective of medical insurance stores, in the first half of 2019, the company had 4,923 qualified medical insurance stores, accounting for 80.


By region, there are 4,923 total stores in the Southwest, with 86% of medical insurance stores; 826 stores in South China, and 49% medical insurance stores; 356 stores in North China, and 84% medical insurance stores; East China9 medical insurance stores, 11%; 15 in central China, medical insurance stores, 60%.

The proportion of the company’s medical insurance stores has maintained a high level, and the space for medical insurance stores in East China and South China has increased.

From a regional perspective, the company has 1,509 provincial-level stores, 1812 prefecture-level stores, 1578 county-level and 1230 township-level stores.

Affected by the policy, new stores were added several 杭州桑拿网 times in the second quarter of 2019. In the second half of the year, it is expected that the development of stores will be increased.

The proportion of selling expenses decreased, and the overall profitability was stable. In the first half of 2019, the company’s gross sales margin and net sales margin were 38.

79%, 6.

66%, slightly decreased in the first half of 2018 every year.

In the first half of 2019, the company’s sales expense ratio, management expense ratio and financial expense ratio were 26.

63%, 3.

69%, 0.


On the whole, the optimization of the sales model has occurred, and the sales expense ratio has decreased. The decrease in financial expenses is mainly due to the reduction of interest rate expenses in the current period after repayment of part of the debts due.

The company expanded from 杭州夜网论坛 a scale to an increase in demand for human resources, and the management expense ratio increased in the first half of 2019 compared to the first half of 20182.


As the leader of chain drug stores, it is expected that rating and rating companies will continue to enjoy the industry’s growth dividend and expand steadily.

It is estimated that the company’s net profit for 2019-2021 will be 6.



770,000 yuan, maintain “Buy” rating.

Risk reminders: the length of the new store market incubation period is longer, market competition risks, policy risks, goodwill impairment risks, business management risks, and problems with licensed pharmacists cause store openings to be slower than expected.