DSL(603233) 东吴证券·2024-11-03 13:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 19.731 billion yuan for the first three quarters of 2024, representing an increase of 11.33% year-on-year, while the net profit attributable to shareholders was 858 million yuan, a decrease of 26.93% [2] - The wholesale business is experiencing rapid growth, with a significant increase in demand for traditional Chinese and Western medicine, while the number of stores continues to rise [3] - The company aims to enhance its market share in newly entered provinces through a combination of direct management and franchise models [3] - Adjustments have been made to the profit forecasts for 2024-2026 due to the challenging consumption environment in the Guangdong region and the impact of new store openings [4] Financial Performance - Total revenue for 2022 was 21.248 billion yuan, with a projected increase to 26.728 billion yuan in 2024, reflecting a growth rate of 8.96% [1] - The net profit attributable to shareholders for 2022 was 1.036 billion yuan, with a forecasted decline to 1.026 billion yuan in 2024, indicating a decrease of 12.02% [1] - The company has seen a steady increase in store numbers, reaching 16,453 stores by the end of Q3 2024, with a net increase of 2,379 stores in the first three quarters [3] - The gross margin for retail revenue was 37.26%, while the wholesale gross margin was 10.94% [3] Store Expansion and Market Strategy - The company has been actively expanding its store network, with a focus on direct management in key provinces and increasing franchise operations in new regions [3] - The company plans to continue its strategy of enhancing market share through both self-built and acquired stores, as well as franchise partnerships [3]