Following the common people, this chain pharmacy will also enter the era of 10,000 stores!

【Pharmaceutical Network Industry News】Following the number of pharmacies exceeding 10,000 in the first half of this year, the chain of Yifeng Pharmacy is also closely followed and is about to enter the "era of 10,000 stores"
.
On October 29, Yifeng Pharmacy released its 2022 third quarter report, which showed that from January to September 2022, the company added 2,116 new stores, including 817 new stores, 478 acquired stores, 821 new franchised stores, and 144 closed stores, and by the end of the reporting period, the total number of the company's stores was 9,781 (including 1,753 franchised stores).

It is understood that Yifeng Pharmacy had a total of 2 M&A investment businesses in the same industry in the third quarter of 2022, which occurred in March and July
.
In March, Shijiazhuang Xinxing, a subsidiary of Yifeng Pharmacy, and Wang Shiying signed the "Handan Yongkang Yijia Pharmaceutical Chain Co.
, Ltd.
Restructuring and Acquisition Framework Agreement" to acquire 90% of the equity of the new company established by its reorganization, with an equity transfer price of 25.
2 million yuan, involving 30 stores, and the equity delivery procedures of the project were completed
in July 2022 。 In July, Shijiazhuang Xinxing, a subsidiary of Yifeng Pharmacy, signed the "Tangshan Deshuntang Pharmaceutical Chain Co.
, Ltd.
Reorganization and Acquisition Framework Agreement" with Dong Junsheng and Li Jun to acquire 70% of the equity of the new company established by its reorganization, with an equity transfer price of 119 million yuan, involving 85 stores, and the equity settlement procedures of the project were completed
in September 2022.
According to the third quarter results announcement, Yifeng Pharmacy achieved a total operating income of 13.
348 billion yuan, a year-on-year increase of 22%; The net profit attributable to the parent was 824 million yuan, a year-on-year increase of 18.
3%; Earnings per share were $1.
15
.
Previously, Yifeng Pharmacy summarized the performance growth into two points: on the one hand, with the normalization of the epidemic and the precision of government prevention and control measures, drug retail is a rigid demand for people's livelihood, and the industry's operation has gradually improved; At the same time, under the background of continuous standardization of industry policies and separation of medicine, the scale of the pharmaceutical retail industry continues to expand, and the overall operation of the industry continues to improve
.
On the other hand, the company continued to adhere to the expansion model of "new opening + mergers and acquisitions + joining" and regional focus, and the number of stores continued to grow rapidly; At the same time, through the continuous optimization of the company's operation system and the continuous improvement of digital management level, the store operation efficiency continued to improve
year-on-year.
At present, under the background of the increasing concentration of the pharmaceutical retail industry, the advantages of head enterprises are prominent, and the competition is more intense, which has accelerated the "horse race"
.
In addition to the common people and Yifeng Pharmacy, there are also many leading enterprises that are also approaching
the number of 10,000 stores.
For example, Dashanlin's report for the first three quarters of 2022 shows that as of September 30, 2022, the company had 9,578 stores (including 1,727 franchised stores).

As of the end of the third quarter of 2022, the number of Yixintang directly operated stores also exceeded 9,000, reaching 9,164, including 3,944 stores outside Yunnan Province
.
Founder Securities Research Report said that domestic chain pharmacies are about to enter the era of 10,000 stores, and "self-construction + mergers and acquisitions + franchise" is the core driving force for
growth.
It is worth mentioning that according to the Ministry of Commerce's "Guiding Opinions on Promoting the High-quality Development of the Pharmaceutical Circulation Industry in the 14th Five-Year Plan Period", by 2025, it is necessary to cultivate 5-10 specialized and diversified pharmaceutical retail chain enterprises of more than 50 billion yuan; The drug retail chain rate is close to 70%.

Judging from the revenue of the four major pharmacy chains in Q3, there is still some distance from
the above goals.
Founder Securities believes that industry concentration + chain rate improvement is still the general trend driving the growth of chain pharmacies, and it is expected to achieve a sales scale of more than 50 billion yuan for 5-10 by
2025.
At the same time, the layout of new scenarios such as DTP pharmacies and Internet + is also becoming a new increment
in the development of chain pharmacies.
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice
to anyone.