Wangfujing(600859) 光大证券·2025-04-27 04:16Investment Rating - The report maintains a "Buy" rating for the company [4][6] Core Views - The company experienced a decline in revenue and net profit in 2024, with total revenue of 11.372 billion and a net profit of 269 million, representing a year-on-year decrease of 6.97% and 62.14% respectively [1][4] - The company is actively expanding its duty-free business and exploring new business formats to meet consumer demand, including successful bids for duty-free operations at airports and the introduction of various experiential retail formats [3][4] Financial Performance Summary - In Q4 2024, the company reported revenue of 2.872 billion, a decrease of 2.92% year-on-year, and a net loss of 158 million [1] - The overall gross margin for 2024 was 40.16%, down 1.68 percentage points year-on-year, with Q4 2024 gross margin at 40.12%, down 3.86 percentage points year-on-year [2] - The company’s operating expenses increased, with a total expense ratio of 31.58% for 2024, up 1.90 percentage points year-on-year [2] Profit Forecast and Valuation - The profit forecasts for 2025 and 2026 have been revised down by 21% and 15% to 490 million and 559 million respectively, with a new forecast for 2027 at 610 million [4][5] - The report provides a detailed financial summary, indicating a projected revenue growth rate of 3.71% for 2025 and a decline in net profit growth rate of 82.34% for the same year [5][10] Business Strategy and Development - The company is enhancing its duty-free layout and strengthening new consumption formats, which are expected to benefit from overall consumption recovery policies [4] - New business initiatives include the integration of over 60 second-dimensional brands and IP resources in shopping centers, and the introduction of experiential formats such as e-sports and cultural performances [3]