Investment Rating - The report maintains a "Buy" rating for the company with a market price of 31.52 [1] Core Insights - The company reported a revenue of 75.64 billion yuan in 2023, a year-on-year increase of 0.72%, and a net profit of 6.56 billion yuan, up 29.55% year-on-year [3] - The first quarter of 2024 showed a revenue of 16.61 billion yuan, a decrease of 1.50% year-on-year, but a net profit increase of 35.60% year-on-year to 1.66 billion yuan [3] - The brand operation business continues to thrive, contributing significantly to revenue and profit margins, with a gross margin of 43.17% [3][4] - The company is focusing on core brand operations while reducing wholesale distribution, leading to improved profitability metrics [4] - Revenue projections for 2024-2026 are set at 91.23 billion, 107.30 billion, and 126.46 billion yuan, with expected growth rates of 21%, 18%, and 18% respectively [4] Financial Performance Summary - The company achieved a gross margin of 29.98% and a net margin of 8.46% in 2023, reflecting improvements in operational efficiency [4] - Earnings per share (EPS) are projected to grow from 1.25 yuan in 2024 to 2.48 yuan in 2026 [1][4] - The price-to-earnings (P/E) ratio is expected to decrease from 25.2 in 2023 to 12.7 in 2026, indicating potential undervaluation [1] - The return on equity (ROE) is projected to remain strong, with values of 25% in 2024 and 24% in 2026 [1][4] Business Segment Analysis - The core brand operation business generated 44.00 billion yuan in revenue in 2023, accounting for 58.17% of total revenue, with significant contributions from key products [3] - The wholesale distribution segment saw a revenue decline of 19.23% in 2023, as the company shifted focus to its core operations [3][4] - Key product revenues include 18.97 billion yuan from the Diqu series, 6.40 billion yuan from Hailu, and 0.83 billion yuan from Niutushuma, all showing strong growth [3]
业绩符合预期，Q1表现亮眼