---
title: "DSL's net profit in 2025 increased by 38.67% year-on-year: The value of the leading company with tens of thousands of stores is highlighted, driven by both expansion and profitability"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/284136060.md"
description: "In 2025, DSL achieved an operating revenue of 27.502 billion yuan, a year-on-year increase of 3.80%; net profit reached 1.359 billion yuan, a significant year-on-year growth of 38.67%. The company strengthened its core competitiveness through self-built, mergers and acquisitions, and direct franchise models, with both profit quality and cash flow being excellent. The net cash flow from operating activities increased by 72.24% year-on-year to 5.35 billion yuan, optimizing capital efficiency, with basic earnings per share of 1.08 yuan, a year-on-year increase of 33.33%. DSL demonstrated a strong market position and growth potential during the industry's clearing period"
datetime: "2026-04-27T01:24:13.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/284136060.md)
  - [en](https://longbridge.com/en/news/284136060.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/284136060.md)
---

# DSL's net profit in 2025 increased by 38.67% year-on-year: The value of the leading company with tens of thousands of stores is highlighted, driven by both expansion and profitability

In 2025, the domestic pharmaceutical retail industry accelerated its clearing and concentration continued to rise, with leading companies seizing the market through scale, supply chain, and digital advantages.

Against this backdrop, DSL (603233.SH) delivered impressive results: achieving an annual operating income of 27.502 billion yuan, a year-on-year increase of 3.80%; net profit reached 1.359 billion yuan, a substantial year-on-year growth of 38.67%, and net profit attributable to the parent company was 1.235 billion yuan, a year-on-year increase of 35.04%. The profit growth rate significantly outpaced the revenue growth rate, demonstrating operational resilience and growth quality.

As the leading chain pharmacy with the most stores and the widest coverage in the country, the company has continuously strengthened its core competitiveness through self-built, mergers and acquisitions, and direct franchise models, combined with digital transformation and deepening supply chain efforts, with long-term value expected to be further released.

**Dual Excellence in Profit Quality and Cash Flow**

In 2025, the company's core financial indicators were optimized across the board, with high profit growth, abundant cash flow, and improved profitability, confirming the significant effectiveness of the "cost reduction and efficiency enhancement" strategy.

DSL's revenue grew steadily, and profits surged significantly. Revenue growth mainly relied on organic growth from existing stores, contributions from newly opened stores, and the expansion of franchise business; net profit, net profit attributable to the parent company, and net profit excluding non-recurring gains and losses increased by 38.67%, 35.04%, and 38.36% year-on-year, respectively. The high growth stemmed from revenue increases, improved management and operational efficiency, and effective total cost control, with profit growth far exceeding the industry average.

DSL's cash flow performance was outstanding, showcasing significant operational resilience. The net cash flow from operating activities increased by 72.24% year-on-year to 5.35 billion yuan, mainly benefiting from net profit growth, improved inventory turnover efficiency, optimized accounts payable cycle, and increased recovery of deposits. The abundant cash flow provides solid support for store expansion and digital investment.

DSL's profitability continues to strengthen, and capital efficiency is optimized. The weighted average return on net assets reached 17.16%, an increase of 3.99 percentage points year-on-year; basic earnings per share were 1.08 yuan, a year-on-year increase of 33.33%. The efficiency of capital utilization and the ability to return to shareholders have risen simultaneously, highlighting advantages during the industry clearing period.

**Network of Ten Thousand Stores Builds Scale Barriers**

The company adheres to the strategy of "deepening South China and laying out nationwide," constructing an integrated model of direct retail, direct franchise, distribution, and manufacturing. The scale of stores remains the first in the industry, with a total of 17,758 stores nationwide by the end of 2025, covering 21 provinces (autonomous regions and municipalities).

In 2025, the company's store expansion transitioned from "cross-province expansion nationwide" to "intensifying coverage within provinces already covered," focusing on increasing regional market share. By the end of the reporting period, there were a total of 17,758 stores nationwide, with a net increase of 1,205 stores, including 501 newly opened stores and 1,240 franchise stores DSL has pioneered the "direct-operated franchise" model in the industry, integrating standardized management of direct operations with the rapid expansion advantages of franchising. It implements "seven unifications" management for franchise stores, empowering them comprehensively in dimensions such as brand, products, membership, and management, effectively addressing the traditional franchise pain points of "difficult control and poor service," ensuring store stability and operational quality. The number of franchise stores has reached 7,290, accounting for over 40%.

DSL has deeply cultivated its products and supply chain, strengthening differentiated barriers. Within the year, it optimized product categories, introducing a total of 608 new varieties and eliminating 1,880 inefficient varieties; the construction of its own brand has steadily advanced, with the sales proportion continuously increasing; it has established deep strategic cooperation with 40 brand manufacturers, building a collaborative model of "channel empowerment + resource complementarity + market co-expansion." The supply chain efficiency and bargaining power are industry-leading, with a total warehouse area of 380,000 square meters and a delivery satisfaction rate as high as 99%.

**Leading Value Undergoing Revaluation**

China's retail pharmaceutical industry is currently in a critical stage of accelerated integration and deep clearing. By 2025, a net closure of 21,925 pharmacies is expected nationwide, with small and medium-sized pharmacies accelerating their exit due to high compliance costs, weak supply chains, and inefficient management.

On the policy front, the supervision of medical insurance drug traceability codes has been fully implemented, and the national unified electronic prescription circulation platform is being accelerated. Nine departments, including the Ministry of Commerce, have issued the "Opinions on Promoting High-Quality Development of the Pharmaceutical Retail Industry," promoting the industry's transformation towards specialization, intensification, digitization, and standardization, with compliance thresholds continuously increasing.

On the demand side, the aging population is driving the expansion of chronic disease management and long-term medication needs, with residents' health consumption extending from "disease treatment" to "prevention and health care," highlighting the value of pharmacies as community health service terminals.

DSL has over 17,000 stores, making it the largest chain pharmacy in China. The large number of stores creates a strong scale effect: on one hand, it significantly enhances purchasing power, effectively diluting procurement costs; on the other hand, the offline network reaches a vast number of community residents, accommodating services such as prescription outflow, chronic disease management, and health testing, continuously amplifying channel value.

The company continues to deepen its digital transformation, implementing over ten digital projects such as store lifecycle platforms, product decision platforms, and intelligent replenishment systems, optimizing inventory and improving turnover efficiency through AI algorithms; under digital empowerment, operational costs continue to decline, and service efficiency significantly improves, forming a differentiated competitive advantage driven by "data and AI empowerment."

Having been deeply involved in pharmaceutical retail for many years, the company has outstanding brand awareness and influence; it has formed a professional service team to provide pharmaceutical services such as prescription review, health testing, and medication guidance, establishing a full lifecycle chronic disease management system, transforming from "drug sales" to "community health service centers," with user stickiness and repurchase rates continuously increasing.

In the first quarter of 2026, the company maintained a steady growth trend, achieving operating revenue of 6.973 billion yuan, a year-on-year increase of 0.25%; net profit attributable to the parent company was 511 million yuan, a year-on-year increase of 11.12%, with growth resilience continuously validated.

Currently, the chain pharmacy industry is in a golden period of increasing concentration, with leading companies' shares continuously concentrating towards the top players. As an absolute leader in the industry, DSL possesses scale barriers, model advantages, technological empowerment, and service stickiness, with a net profit growth rate of 38.67% in 2025 far exceeding the industry average, abundant cash flow, robust profitability, and strong growth certainty In terms of valuation, as of April 23, 2026, the company's price-to-earnings ratio is 16.1 times and the price-to-book ratio is 2.91 times, which is at a low level in the industry, below the industry average valuation level, providing ample margin of safety. In the long term, with the advancement of store density, the release of service value, and the implementation of digital cost reduction and efficiency improvement, the company's performance is expected to continue to maintain high growth, with broad space for both valuation and performance improvement, making it a core investment target in the pharmaceutical retail sector

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