TINGYI(00322) 海通国际·2024-04-02 16:00Investment Rating - The report maintains an "Outperform" rating for the company with a target price of HKD 13.09 per share [1][4] Core Views - The company achieved stable revenue growth in 2023, with total revenue reaching RMB 80.42 billion, a year-on-year increase of 2.16% [1] - Net profit attributable to shareholders increased by 18.43% year-on-year to RMB 3.12 billion, driven by improved gross profit margin and effective cost control [1] - The beverage business surpassed RMB 50 billion in revenue, with tea, juice, water, and carbonated drinks all showing growth [2][8] - The instant noodle business faced growth pressure but saw significant profitability improvement, with net profit attributable to shareholders increasing by 46.10% [9] Financial Performance - The company's gross profit margin increased by 1.33 percentage points to 30.42% in 2023, leading to a 6.85% increase in gross profit [1] - The beverage business achieved a gross profit margin of 32.10%, up 0.15 percentage points year-on-year, while the instant noodle business saw a 3.05 percentage point increase in gross profit margin to 27.00% [1][9] - The company distributed a cash dividend of RMB 3.12 billion, with a dividend payout ratio of 99.98% [1] Business Segment Analysis - Beverage business revenue reached RMB 50.94 billion, a year-on-year increase of 5.39%, with tea beverages contributing RMB 20.06 billion, up 6.96% [2][8] - Water business revenue grew by 9.78% to RMB 5.38 billion, while juice business revenue increased by 4.47% to RMB 7.15 billion [2] - Instant noodle business revenue declined by 2.84% to RMB 28.79 billion, but profitability improved significantly due to lower raw material costs and favorable pricing [9] Future Outlook - The company aims to expand its scale advantage in 2024, focusing on core categories and sugar-free trends to meet diverse consumer needs [4][9] - Revenue is projected to grow to RMB 85.78 billion in 2024, RMB 89.91 billion in 2025, and RMB 93.36 billion in 2026, with net profit attributable to shareholders expected to reach RMB 3.50 billion, RMB 3.75 billion, and RMB 4.01 billion respectively [4] - The company plans to continue offering multi-price, multi-specification, and diversified flavor products in the instant noodle segment, while accelerating the establishment of scale advantages in the beverage business [4]