Yifeng Pharmacy 2Q26F preview and FY26F forecast revisions

Research evidence excerpt

Yifeng Pharmacy 2Q26F preview and FY26F forecast revisions

Global Markets Research

Yifeng Pharmacy 603939.SS 603939 CH 31 July 2026

EQUITY: HEALTH CARE & PHARMACEUTICALS

Rating2Q26F preview and FY26F forecast revisions Remains Buy

Target priceWe expect stable operation in 2Q26F despite some policy Reduced from CNY 33.97headwinds CNY 35.50

We estimate 2Q26F sales/net profit edged up 6%/2% y-y Closing30 July 2026price CNY 22.70

We estimate Yifeng’s 2Q26F revenue rose 6% y-y (vs 1% y-y in 1Q26) to CNY6.0bn

(lower than the Bloomberg consensus estimate of CNY6.5bn), on the assumption of store Implied upside +49.6%

addition pick up: opened 217 pharmacy stores (56/161 through self-build/franchise, vs

28/114 in 1Q26), but closed 38 (vs 30 in 1Q26) stores. By segment, we estimate Market Cap (USD mn) 4,072.9

retail/wholesale revenue recorded 4%/15% y-y growth to CNY5.2bn/686mn in 2Q26F. ADT (USD mn) 40.8

For margins in 2Q26F, we forecast gross margin of 39.9% (-1.4pp y-y, yet on par with

Relative performance chart1Q26’s) and a lower opex ratio of 28.9% (-1.4pp y-y), led by enhanced operating

efficiency. Together with a lower other income and higher minority interest, we expect that

2Q26F net profit to shareholders came in at CNY439mn (+2% y-y).

For 2H26F, we forecast Yifeng’s topline registered growth of 10% y-y to CNY14bn, of

which retail/wholesale revenue book 11%/5% y-y growth to CNY12.3bn/1.3bn, on the

back of stable store expansion. Together with our higher gross margin and flat opex ratio

estimates, we estimate net profit to shareholders rose 20% y-y to CNY959mn in 2H26F,

from a low 2H25 base.

Retail sales of pharmaceutical products rose 3.3% y-y in 1H26

According to the National Bureau of Statistics, pharmaceutical products rose 3.3% y-y in

1H26.