> ~ Good Analysis ~
> But some how we do not have clarity...also I do know that Goldman
> Sachs is one of the largest Ins. Invest. in this company.
> Couple of quarters ago...during the earning confernce call I asked NPD
> if they own the real estate (stores), at that time thye told me that
> 95 % of the stiores are rented.
> That does not sound a very good statregy .....I have been inversting
> in this since the IPO and am still hoping that we will see some
> upside.....
> Keep posting.........

> ========================================================================

> On May 27, 5:16 am, s.y...@favorit.com.cn wrote:

> > Because of lack of interest in NPD from professional analyst, I
> > thought I will submit the first analysis of NPD Q1 quarterly report :)

> > The revenue growth is disappointing. what we are seeing is that NPD
> > opened 16 new stores in the first quarter. This is a small number
> > compared to previous year but it is also indicating that the
> > management is moving away from their previous strategy. This is also
> > shown in the revenue growth of 12.1% instead of in the 20%-range. But
> > I think the new strategy is a good thing because there is emphasize on
> > the quality of stores and location. The revenue growth will be slower
> > but the earnings as part of revenue will improve because. The per-
> > store performance should improve over time. Anyway, the number of
> > newly opened stores in the first quarter is very meager, even there is
> > a shift in strategy. I expect the number of newly opened stores to
> > grow in the 2nd quarter and onwards in the future. As the report
> > indicates, there is already talks ongoing with the local governments
> > of Hubei and Jilin Province. There is a lot of room for NPD to grow.
> > Either by growing organically or by buying up smaller rivals. But this
> > time with more emphasize on quality of the stores.

> > First quarter revenue contribution from prescription drugs was 22.1%
> > This is much better than the 19.7% in the previous quarter. I think
> > that we already see some effect of the health care reforms which is
> > shifting the drug distribution from hospitals to retail pharmacy. This
> > is a good development for NPD and for the consumers.

> > The company's margin is still improving and the balance and cashflow
> > are very healthy.

> > The earning of RMB 30 mln is a disappointment. In Q1 2008 this was 55
> > mln. But this can be explained by RMB 12 mln less interest income and
> > increased sales and marketing costs of 13 mln. This is very
> > reasonable. What is important is that the gross margin, which is
> > 48.2%, is still very strong.

> > A positive note in the report is the expression of the management that
> > 'We believe the worst is already behind us and look forward to
> > recovery in the balance of the year'- Hide quoted text -

> - Show quoted text -