Bank of China Securities: Maintain LBX "Buy" rating, optimistic about the company's future development

According to a research report by Bank of China Securities, LBX's total profit for 2024 is expected to be 916 million yuan, a year-on-year decrease of 34.94%; the total profit for the first quarter of 2025 is expected to be 366 million yuan, a year-on-year decrease of 20.49%. Revenue remains basically stable, while profits are under short-term pressure. In the first quarter of 2025, the company's franchise business achieved delivery revenue exceeding 580 million yuan. Subsequently, with the company's graded management of franchise pharmacies and information empowerment, the franchise business is worth paying attention to. The Torch Project continues to improve profitability and actively explores a second growth curve. Although the company's short-term profits are under pressure, with the continuous advancement of the franchise business and the Torch Project, the company's profitability is expected to continue to improve. The future development of the company is optimistic, maintaining a "buy" rating