Recently, Zheshang Securities released a research report stating that the distribution sector is an important link between the supply side and the demand side of the pharmaceutical industry, and is also an important sector that pioneered the reform of the new medical reform.

The bank believes that the distribution industry's leading pattern is basically stable, and concentration is increasing or continuing to accelerate under policy impetus. Coupled with the deepening of medical reform, the higher requirements for refined management and informatization, and the gradual implementation of various leading industrial parties in circulation, the sector's growth and profitability are expected to continue to improve. The bank recommends focusing on distribution leaders whose market share continues to increase and continue to expand capacity boundaries and service capabilities.

It is worth mentioning that as a digital leader in out-of-hospital medicine, Pharmacist Help (09885)'s business foundation has continued to be consolidated in recent years. Among them, according to the Zhitong Finance App, Pharmacist Help recorded a GMV of RMB 37.8 billion in 2022, accounting for 21.0% of the market share in the digital pharmaceutical distribution service market outside of hospitals in China, ranking first. In the first half of 2023, Pharmacist Help GMV reached RMB 22.041 billion, an increase of 34.4% over the previous year; the average number of monthly active buyers on the platform exceeded 353,000, an increase of 17.6% over the previous year. Among them, the average number of monthly paying sellers reached 331,000, an increase of 22.5% over the previous year, the payment rate increased by 3.7 pct to 93.6%, and the average number of orders placed per paying buyer also increased by 12.7% to 28.4 times per month.

Recently, the Southwest Securities Overseas Group mentioned in an information collation that Pharmacist Help's platform+self-operated market model has formed a vibrant ecosystem, and business growth is driven by the dual engine of platforms and self-operated businesses. The digital marketplace can provide buyers with a rich selection of SKUs, and the advantages of self-operated businesses include aggregating purchasing power, improving upstream bargaining power, and comprehensively controlling warehousing and fulfillment to improve delivery quality and stability.

According to Frost & Sullivan, Pharmacist Help GMV's market share reached 21.0% in 2022, making it the largest out-of-hospital digital medicine platform in China. CMB International expects that in the next few years, Pharmacist Aid's revenue will continue to grow at a strong momentum. The revenue scale for 2023-2025 is expected to reach 17.902 billion yuan, 24.960 billion yuan, and 34.03 billion yuan respectively, which is equivalent to 25.4%, 39.4%, and 36.3% year-on-year increases of 25.4%, 39.4%, and 36.3% in the corresponding years. GMV will reach 50,423 billion yuan, 68.139 billion yuan, and 90.727 billion yuan respectively.