DSL(603233) 国金证券·2025-04-27 08:05Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [3][11]. Core Views - The company reported a revenue of 26.497 billion RMB in 2024, an increase of 8.0% year-on-year, but a decline in net profit attributable to shareholders by 21.6% to 915 million RMB [2]. - In Q1 2025, the company achieved a revenue of 6.956 billion RMB, a 3.0% increase year-on-year, with a net profit of 460 million RMB, reflecting a 15.5% increase [2]. - The company is undergoing a period of adjustment, optimizing its store network, which is expected to lead to stable profit growth post-adjustment [3]. Summary by Sections Performance Review - In 2024, the company achieved a total revenue of 26.497 billion RMB, with a net profit of 915 million RMB, and a non-recurring net profit of 885 million RMB, both showing declines compared to the previous year [2]. - For Q1 2025, the company reported a revenue of 6.956 billion RMB and a net profit of 460 million RMB, indicating positive growth in profitability [2]. Operational Analysis - The company opened 907 self-built stores, acquired 420 stores, and added 1,885 franchise stores in 2024, while closing 733 stores to optimize its network [3]. - In Q1 2025, the company net added 69 stores, with 54 new openings and 189 franchise additions, while closing 174 stores [3]. - The fastest-growing segment in Q1 2025 was traditional Chinese and Western medicine, generating approximately 5.32 billion RMB in revenue, a 5.8% increase year-on-year [3]. Profit Forecast, Valuation, and Rating - The company is expected to gradually return to normal growth after the adjustment period, with projected net profits of 1.1 billion RMB, 1.32 billion RMB, and 1.52 billion RMB for 2025, 2026, and 2027, respectively, reflecting year-on-year growth rates of 20.1%, 19.8%, and 15.3% [3]. - The projected earnings per share (EPS) for 2025, 2026, and 2027 are 0.96 RMB, 1.16 RMB, and 1.33 RMB, with corresponding price-to-earnings (P/E) ratios of 17, 15, and 13 times [3].