Gelonghui September 8 | September 5,China SecuritiesPublished research report, covered for the first timePharmacist Gang(9885. HK) and gave a "buy" rating, optimistic about its continued profitability and development prospects.China Securities InvestmentSecurities pointed out in the research report that Yaoshibang has deeply deployed the sinking market outside the hospital, from 2020 to 2024Operating incomeFrom 6.06 billion yuan to 17.904 billion yuan, the compound growth rate during the period reached 31.1%, and the scale advantage was obvious. In the self-operated business, the first brand launch and the accelerated growth of self-operated brand business have driven the simultaneous increase in revenue and gross profit margin; The net difference between commission rate and subsidy rate of platform business continues to expand, and profitability continues to improve; POCT equipment is expected to steadily increase in volume, realize the coordination of medical + drug + inspection, and diversified businesses have entered the harvest period. In addition, the company's cash flow is relatively good, and the scale of subsequent net operating cash flow is expected to gradually increase with the scale of operations. In the first half of 2025, Yaoshibang will continue its strong momentum of turning losses into profits in 2024, achieving operating income, returning to the parentNet profitThey were 9.843 billion yuan and 78 million yuan respectively, a year-on-year increase of 11.7% and 258% respectively, in line with market expectations. China Securities Investment believes that the high-gross business of Yaoshibang has accelerated its growth, and the business has entered the harvest stage. It estimates that the company's net profits attributable to the parent company from 2025 to 2027 will be 148 million yuan, 315 million yuan and 512 million yuan respectively, a year-on-year increase of 393.6%, 112.3% and 62.7% respectively, giving a "buy" rating for the first time. After the results of Yaoshibang's interim report were disclosed, a number of securities firms successively updated their research reports and were optimistic about Yaoshibang. Wherein,Cinda SecuritiesIt is believed that the brand's first business has contributed strong growth momentum and further improved the company'sGROSS PROFITStructure;Great Wall SecuritiesIt is believed that the scale of its own brand business is showing a high growth trend, and the strategic upgrade from "scale expansion" to "profit improvement" is gradually realized. It is estimated that the company will achieve net profits attributable to the parent company of 124 million yuan, 379 million yuan, and 720 million yuan from 2025 to 2027. Both brokerages maintain a "buy" rating. Since the beginning of this year, the stock price of Yaoshibang has increased from HK $5Pull upTo around HK $11, the biggest increase during the year once exceeded 120%. Recently, the stock price of Yaoshibang has remained at around HK $10. According to industry insiders, the company is in the period of chip exchange between new and old shareholders, or it may show the characteristics of shock consolidation in stages. Yaoshibang has a good fundamentals, solid long-term logic, and its profitability has been greatly improved in the first half of the year. After completing the chip exchange and stabilization and consolidation, it may have the opportunity to make an upward breakthrough.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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