MILKYWAY(603713) Guohai Securities·2024-04-13 16:00Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [7][26]. Core Views - The company has shown a recovery in revenue growth in Q1 2024, with a year-on-year increase of 23.3%, indicating a positive trend that is expected to continue [3][27]. - The company has successfully expanded its business through acquisitions and has formed a diversified business layout that is expected to drive long-term growth [7][27]. - The company's profitability has improved, with a gross margin of 11.6% in Q1 2024, reflecting a continuous upward trend [4][27]. Financial Performance Summary - In 2023, the company achieved a revenue of 9.75 billion yuan, a decrease of 15.8% year-on-year, and a net profit of 430 million yuan, down 28.7% year-on-year [2][10]. - For Q1 2024, the company reported a revenue of 2.9 billion yuan, a year-on-year increase of 23.3%, and a net profit of 150 million yuan, up 40.6% year-on-year [2][10]. - The company’s gross margin improved to 11.6% in Q1 2024, up 0.4 percentage points year-on-year, continuing the upward trend from previous quarters [4][27]. - The company’s revenue projections for 2024-2026 are 11.99 billion yuan, 13.65 billion yuan, and 15.08 billion yuan, respectively, with corresponding net profits of 617 million yuan, 713 million yuan, and 776 million yuan [7][10].