Breo(688793) 申万宏源·2025-03-01 13:50Investment Rating - The investment rating for the company is "Outperform" (maintained) [1] Core Insights - The company has turned profitable in 2024, with a projected net profit of 9 million yuan, a significant turnaround from a loss of 51 million yuan in 2023, indicating a year-on-year growth of 572.8% [6] - The company is focusing on cost reduction and efficiency improvements, which are expected to enhance overall operational efficiency and profitability [6] - Online sales have declined, particularly on platforms like Douyin, but profitability is anticipated to improve as the company optimizes its sales channels [6] - The company is expanding its offline presence and has initiated a new business model through provincial retail service providers to penetrate lower-tier markets [6] - A slight downward adjustment in profit forecasts has been made, with expected net profits for 2024, 2025, and 2026 being 0.09 billion, 0.59 billion, and 0.90 billion yuan respectively [6] Financial Data Summary - Total revenue for 2024 is estimated at 1.085 billion yuan, reflecting a year-on-year decrease of 14.9% [5] - Gross profit margin is projected to be 62.2% in 2024, with a return on equity (ROE) of 2.3% [5] - The company’s earnings per share (EPS) is expected to be 0.10 yuan in 2024, increasing to 1.05 yuan by 2026 [5] - The company’s market capitalization is approximately 2.607 billion yuan, with a price-to-earnings (P/E) ratio of 299 for 2024 [1][5]