CBEST(600729) EBSCN·2024-04-30 08:32Investment Rating - The report maintains a "Buy" rating for the company [2][26][36] Core Views - The company has experienced a decline in revenue and net profit in Q1 2024, with revenue decreasing by 4.63% year-on-year and net profit decreasing by 15.07% [21][26] - The company completed the absorption merger with the trading group, which is expected to enhance its operational capabilities [11][25] - Despite the challenges, the company is optimizing its business strategies across different segments and improving its management structure [26][35] Summary by Sections Financial Performance - In Q1 2024, the company achieved a revenue of 4.85 billion yuan, a year-on-year decrease of 4.63%, and a net profit of 435 million yuan, translating to a fully diluted EPS of 0.97 yuan, down 15.07% year-on-year [21][26] - The overall gross margin for Q1 2024 was 28.20%, a decrease of 1.37 percentage points year-on-year [34] Business Segments - The electrical appliance segment performed relatively well, with revenue growth of 4.71% year-on-year and a gross margin increase of 0.45 percentage points [22][34] - The company opened one new supermarket, one electrical appliance store, and one automotive trade outlet while closing one of each type [22] Market Outlook - The report indicates a downward adjustment in profit forecasts for 2024, 2025, and 2026 by 4%, 5%, and 5% respectively, due to revenue pressures and competitive market conditions [26] - The company is focusing on enhancing its online and offline integration and optimizing its store operations [35]