Another drugstore chain is on the market! The pharmaceutical retail giant will be in a fierce battle

Medicine Network November 19th, November 18th, Yunnan Jianjia Health Chain Co., Ltd. (hereinafter referred to as "Jianjia") announced the initial public offering of shares, will be accepted by investors on November 19th online purchase.
the issue price of 72.89 yuan / share, the number of shares issued in this public offering is 13.25 million shares, if successful in this issue, the total amount of funds raised by this health care is expected to be 960 million yuan.
's listing may set off a second wave of regional-based retail pharmacies.
in the upcoming "14th Five-Year Plan" period, the domestic drug retail market industry concentration will continue to increase.
southwest of China or into a short-term main battleground new store construction projects are the absolute head of health fund-raising, and this is the industry's most attention outside.
from Kunming, based in Yunnan, focused on rooting in the southwest, is the best to the industry's general impression.
also confirmed this in its prospecto.
as of June 30, 2020, Jianjia has 1607 direct-camp community professional convenience pharmacies, 4 direct-to-camp Chinese medicine clinics, 2 direct-camp community clinics, 1 direct-camp medical examination center, 211 direct-owned convenience stores and 24 affiliated convenience stores.
, the number of direct stores in Yunnan accounted for 84.05 percent of the company's total direct stores, while the main business income from Yunnan Province accounted for 84.65 percent of the main business revenue.
In the first half of this year, Jianjia acquired 85 stores through equity acquisitions (two companies, 34 stores), store and operating asset acquisitions (51 stores), also mainly in the Yunnan provincial and county markets.
and even in the prospecto specifically listed "more concentrated business area" risk tips.
such a regional layout inevitably led to comparison with the first landing A-share.
first three quarters of 2020, revenue was RMB9,239 million, up 20.59 percent year-on-year, and net profit was RMB604 million, up 24.8 percent year-on-year, according to a third-quarter report released earlier.
And from the store layout, there are 6,911 direct stores, 4,164 in the base of Yunnan Province, 841 in Sichuan Province, 641 in Guangxi Province, the rest of the stores in Chongqing, Shanxi, Guizhou, Hainan, Henan, Shanghai, Tianjin.
, it can be seen that the one-hearted church for the relatively low level of economic level of the province, the relatively weak purchasing power of Yunnan Province, the degree of dependence is also very high.
Compared with this, Jianjia still has a large distance in total revenue, while the growth rate is slightly better: in January-September this year, Jianjia expected operating income of 3.17 billion yuan, an increase of 26.77 percent compared with the same period last year, net profit of 170 million yuan, an increase of 34.60 percent over the same period last year.
, it was revealed that Jianjia's new store construction project plans to add 1,050 stores in Yunnan, Sichuan, Chongqing, Guangxi four regions.
However, it is worth noting that Yunnan, Sichuan, Chongqing and Guangxi are also more competitive areas of the pharmaceutical retail industry, not only there are more retail individual pharmacies, at the same time, a single heart, Dasanlin, the people, Yan Junge and other large-scale pharmaceutical retail chain enterprises in the above-mentioned areas are also laid out, more intense competition, prone to the risk of insufficient market capacity.
fact, with the growing number of retail pharmacy stores, especially pharmaceutical retail chain listed companies rely on the advantages of capital, accelerate the pace of business development, mergers and acquisitions, interregional competition further intensified.
The Drug Circulation Industry Operation Statistics Analysis Report shows that by the end of 2019, the retail pharmacy chain rate reached 55.8%, with a total of 75,357 retail stores selling the top 100 pharmaceutical companies, an increase of 5,998 over the same period last year.
data source: "Pharmaceutical circulation industry operation statistical analysis report (2011-2019)" Of course, China's drug retail chain rate increased year by year is also an enterprise, especially pharmaceutical retail chain listed companies based on realistic considerations.
Comparing the three-quarter results of the four listed pharmacies, we can see that the leading Dasanlin achieved revenue of RMB10,492 million (up 30.49 percent YoY) and net profit of RMB867 million (up 55.9 percent YoY), which is greatly related to the increase in store expansion in recent years and the continued drive for revenue growth.
industry analysts believe that in addition to the plan to build new stores, the acquisition will also become its fast-track path.
Jianjia said that at this stage, the acquisition of stores mainly consider the existing region's single drugstores, small-scale drugstore chains, as well as the new region's local market share and size of the top three drugstore chains.
expected that with jianjia's listing to raise capital, the retail market in Yunnan Province will further intensify competition, suggesting that the relevant enterprises need to re-plan their business strategy to meet the possible arrival of the "Red Sea."
will the line become a breakthrough? Offline layout knife see red, will the line become the key to the later counter-attack? Another project from Jianjia's fund-raising, the 4-channel multi-industry marketing platform, seems to be able to sniff out a hint of impotence.
Although its sales method is still mainly in offline store retail, but in the face of the "Internet and drug circulation" policy, "Internet and health insurance services" policy and consumer habits brought about by the integration of the industry trends, Healthy online layout has also begun to see the scale: the company has obtained the relevant qualifications to engage in Internet drug transactions, and through the company's official website, third-party network platforms such as JD.com, Tmall, Suning Tesco, and other active e-commerce business.
Jianjia's own platform and third-party platform profit situation (source: Jianjia prospecto) it is worth mentioning that Jianjia network platform revenue mainly comes from its own platform sales - Jiae purchase electronic shelf sales.
According to the analysis, the business for online and offline combination, make full use of store resources to expand online sales of O2O incremental business, the cost is mainly good e-purchase electronic shelf equipment amortization and according to the sales share of distribution costs, store staff business promotion, to assist customers of the operating costs are not measured separately, so the profit contribution is higher.
Can be seen that the O2O model can help retail chains, especially regional leading enterprises with existing offline store resources, stores as experience stores, pick-up points and distribution points, to solve the last kilometer of distribution problems;
Jianjia expects that after the completion of the project, members can enjoy the same services in the online mall, mobile APP, electronic shelves and stores and other channels, thereby promoting members to spend twice or more, to enhance the company's future revenue level.
can now be expected, with the well-to-do listing, the power of the capital market will continue, the southwest and even the national drug retail market is about to make waves.
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