Yourchance Pharmacy debuted on the over-the-counter market at NT$65 per share yesterday, with the opening price surging by more than 30% to reach NT$86 at one point. However, it failed to regain the previous day's closing price of NT$100.5 on the Emerging Stock Market. Yourchance plans to continue expanding its direct-operated store network this year, expecting to add 20 new stores, bringing the total to 180, with revenue and profits expected to rise concurrently.
Yourchance is a subsidiary of the Rossmax, focusing on community health care. It currently owns three major retail brands: "Yourchance Health Pharmacy," "Healthy Life Pharmacy," and "Sapporo Cosmetics," with a total of 160 stores as of the end of 2023, spread across Taiwan. "Sapporo Cosmetics" operates under authorization from Sapporo Cosmetics in Hokkaido, Japan, with 16 stores to date. In recent years, Yourchance has also entered the elderly market, opening 62 elderly stores to provide comprehensive health care solutions for the elderly.
In the third quarter of last year, Yourchance incurred a loss mainly due to adjustments in revenue and profit recognition methods, suppressing its full-year net profit after tax to NT$14.8 million, or NT$0.37 per share. This was primarily due to higher initial expenses for new stores and a decline in demand for epidemic prevention products as the additional benefits from the epidemic waned.
Looking ahead, the proportion of new locations added after 2024 is expected to be around 10-15%, with the scale projected to reach 200 stores by 2026. At that time, the majority, around 70-80%, of stores will enter the recovery period and begin to turn a profit, significantly easing the pressure of maintaining new stores with profits from older ones. Profitability is expected to improve significantly. This year, expansion of stores will continue at a rate of 10-15%, mainly focusing on Yourchance Health Pharmacy and Sapporo Cosmetics direct-operated stores, each increasing by 10-15%. Yourchance will also actively recruit independent community pharmacies into its franchise system. Revenue is expected to return to double-digit growth this year, with profits significantly higher than last year.
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