Financials LBX Pharmacy Chain

Equities

603883

CNE1000023Q8

Drug Retailers

End-of-day quote Shanghai S.E. Other stock markets 06:00:00 2024-04-25 pm EDT			5-day change	1st Jan Change
32.12 ^CNY	+0.69%		+0.97%	+7.46%

Mar. 07	Nomura Adjusts LBX Pharmacy Chain’s Price Target to 45.79 Yuan From 43.96 Yuan, Keeps at Buy	MT
2023	LBX Pharmacy Chain Joint Stock Company Reports Earnings Results for the Nine Months Ended September 30, 2023	CI

Valuation

Fiscal Period: December	2018	2019	2020	2021	2022	2023	2024	2025
Capitalization ¹	13,452	18,268	25,528	20,060	23,671	18,788	18,788	-
Enterprise Value (EV) ¹	13,452	18,608	25,406	22,051	24,895	20,905	20,646	21,277
P/E ratio	30.9 x	36.4 x	41.3 x	30.1 x	29.8 x	20.2 x	16.4 x	13.5 x
Yield	1.06%	0.66%	0.56%	1.01%	1.24%	1.52%	1.83%	2.2%
Capitalization / Revenue	1.42 x	1.57 x	1.83 x	1.28 x	1.17 x	0.8 x	0.67 x	0.56 x
EV / Revenue	1.42 x	1.6 x	1.82 x	1.4 x	1.23 x	0.89 x	0.73 x	0.63 x
EV / EBITDA	15.2 x	21.6 x	21.1 x	18.3 x	16.7 x	9.03 x	8.01 x	6.85 x
EV / FCF	333 x	-	24 x	12.1 x	12.3 x	9.73 x	10.7 x	7.77 x
FCF Yield	0.3%	-	4.16%	8.25%	8.1%	10.3%	9.34%	12.9%
Price to Book	4.42 x	5.27 x	5.99 x	4.63 x	3.62 x	2.56 x	2.29 x	2.03 x
Nbr of stocks (in thousands)	518,600	518,839	528,184	528,108	584,903	584,933	584,933	-
Reference price ²	25.94	35.21	48.33	37.98	40.47	32.12	32.12	32.12
Announcement Date	3/5/19	4/28/20	4/27/21	4/28/22	4/27/23	-	-	-

¹CNY in Million²CNY

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2018	2019	2020	2021	2022	2023	2024	2025
Net sales ¹	9,471	11,663	13,967	15,696	20,176	23,396	28,247	33,666
EBITDA ¹	886.9	860.1	1,204	1,203	1,490	2,315	2,578	3,106
EBIT ¹	628.9	765.1	959.5	956.5	1,207	1,496	1,827	2,233
Operating Margin	6.64%	6.56%	6.87%	6.09%	5.98%	6.39%	6.47%	6.63%
Earnings before Tax (EBT) ¹	636.3	770.4	956.9	962	1,208	1,418	1,747	2,132
Net income ¹	435	508.7	621.1	669.2	785	928.9	1,148	1,400
Net margin	4.59%	4.36%	4.45%	4.26%	3.89%	3.97%	4.06%	4.16%
EPS ²	0.8407	0.9670	1.169	1.262	1.360	1.587	1.961	2.388
Free Cash Flow ¹	40.43	-	1,057	1,820	2,017	2,149	1,929	2,738
FCF margin	0.43%	-	7.57%	11.59%	10%	9.19%	6.83%	8.13%
FCF Conversion (EBITDA)	4.56%	-	87.78%	151.2%	135.42%	92.84%	74.83%	88.17%
FCF Conversion (Net income)	9.29%	-	170.21%	271.9%	257.01%	231.34%	168.03%	195.67%
Dividend per Share ²	0.2747	0.2308	0.2692	0.3846	0.5000	0.4875	0.5869	0.7078
Announcement Date	3/5/19	4/28/20	4/27/21	4/28/22	4/27/23	-	-	-

¹CNY in Million²CNY

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2021 Q2	2021 Q3	2021 Q4	2022 Q1	2022 Q2	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 S1	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 Q3	2024 Q4
Net sales ¹	3,823	3,820	4,415	4,141	4,850	4,785	6,399	5,441	5,370	10,811	5,231	6,729	6,101	6,836	6,806	8,153
EBITDA ¹	309.6	291.8	196.8	391.7	374.2	319.3	-	-	-	-	-	611.6	742.8	780.5	780.5	818.2
EBIT ¹	254.7	205.8	210.9	321.7	320.7	218.8	345.5	416.5	340.9	757.4	307.8	401.9	491.3	479.2	451.7	509.2
Operating Margin	6.66%	5.39%	4.78%	7.77%	6.61%	4.57%	5.4%	7.66%	6.35%	7.01%	5.89%	5.97%	8.05%	7.01%	6.64%	6.25%
Earnings before Tax (EBT) ¹	-	179.4	206.6	321.4	320.7	216	349.6	416.5	343.9	760.4	309.5	306.5	401.8	436.7	436.7	471.6
Net income ¹	-	126.8	136.6	241.8	214.7	153.1	175.3	291.3	221.9	513.2	203.3	179.6	297.1	281.7	281.7	304.3
Net margin	-	3.32%	3.09%	5.84%	4.43%	3.2%	2.74%	5.35%	4.13%	4.75%	3.89%	2.67%	4.87%	4.12%	4.14%	3.73%
EPS ²	0.3308	0.2385	0.2615	0.4077	0.5000	0.2600	0.3100	0.5000	0.3800	-	0.3400	0.3557	0.4977	0.4706	0.3872	0.7001
Dividend per Share	-	-	-	-	-	-	-	-	-	-	-	-	-	0.5883	-	-
Announcement Date	8/17/21	10/29/21	4/28/22	4/28/22	8/29/22	10/28/22	4/27/23	4/27/23	8/30/23	8/30/23	10/30/23	-	-	-	-	-

¹CNY in Million²CNY

Estimates

Balance Sheet Analysis

Fiscal Period: December	2018	2019	2020	2021	2022	2023	2024	2025
Net Debt ¹	-	341	-	1,991	1,224	2,117	1,858	2,489
Net Cash position ¹	-	-	122	-	-	-	-	-
Leverage (Debt/EBITDA)	-	0.396 x	-	1.655 x	0.8214 x	0.9146 x	0.7206 x	0.8014 x
Free Cash Flow ¹	40.4	-	1,057	1,820	2,017	2,149	1,929	2,739
ROE (net income / shareholders' equity)	14.9%	15.6%	15.9%	15.7%	12.7%	13.1%	14.4%	15.4%
ROA (Net income/ Total Assets)	5.73%	5.53%	5.86%	5.19%	4.09%	4.3%	4.68%	4.98%
Assets ¹	7,592	9,205	10,604	12,895	19,178	21,603	24,561	28,132
Book Value Per Share ²	5.870	6.680	8.070	8.200	11.20	12.50	14.00	15.80
Cash Flow per Share ²	1.760	0.9700	2.720	4.330	3.960	3.300	4.000	4.300
Capex ¹	873	426	394	479	297	414	436	476
Capex / Sales	9.21%	3.66%	2.82%	3.05%	1.47%	1.77%	1.54%	1.41%
Announcement Date	3/5/19	4/28/20	4/27/21	4/28/22	4/27/23	-	-	-

¹CNY in Million²CNY

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for LBX Pharmacy Chain

Trading Rating

Investor Rating

ESG Refinitiv

C+

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

32.12 CNY

Average target price

38.63 CNY

Spread / Average Target

+20.26%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Retail - Drugs with Grocery

	1st Jan change	Capi.
LBX PHARMACY CHAIN	+7.46%	2.59B
COSMOS PHARMACEUTICAL CORPORATION	-11.64%	3.62B
SUNDRUG CO.,LTD.	-0.09%	3.36B
TSURUHA HOLDINGS INC.	-23.44%	3.06B
KUSURI NO AOKI HOLDINGS CO., LTD.	-9.26%	1.75B
CREATE SD HOLDINGS CO., LTD.	+9.30%	1.35B
GREAT TREE PHARMACY CO., LTD.	-20.60%	957M
SHUYU CIVILIAN PHARMACY CORP., LTD.	-38.42%	704M
FARMACIAS BENAVIDES, S.A.B. DE C.V.	-0.53%	450M
CAWACHI LIMITED	-1.85%	370M

Retail - Drugs with Grocery