China Healthcare Services Drug Chains FY25 and 1Q26 Wrap Up

China's leading pharmacy chains are beginning to recover ahead of the broader market, driven by store count stabilization and positive SSSG trends. Goldman Sachs remains Buy-rated on Yifeng and Dashenlin, citing their operational efficiency and ability to benefit from prescription outflows.

Key Takeaways

• 1.Leading drug store chains (Yifeng, Dashenlin, LBX) have seen store counts bottom out and begin to recover, while smaller competitors remain in a reduction phase.
• 2.Same-Store Sales Growth (SSSG) has been positive since mid-2025 and is expected to reach approximately 5% for the full year for leaders.
• 3.Growth is being driven by structural shifts, specifically prescription outflow following DRG/DIP reforms and high demand for new products like Semaglutide.

Table of Contents

• Price Target Risks & Methodology Yifeng
• Dashenlin
• LBX
• Disclosure Appendix
• GS Factor Profile
• M&A Rank
• Quantum
• Disclosures
• Company-specific regulatory disclosures
• Distribution of ratings/investment banking relationships
• Price target and rating history chart(s)
• Target price history table(s)
• Regulatory disclosures
• Ratings, coverage universe and related definitions
• Global product; distributing entities
• General disclosures

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