CHOW TAI SENG Jewellery Company Limited(SZ:002867) Haitong Securities·2024-05-17 09:32Investment Rating - The investment rating for the company is "Outperform the Market" [2] Core Insights - The company reported a revenue of 16.29 billion yuan for 2023, representing a year-on-year growth of 46.52%. The net profit attributable to shareholders was 1.316 billion yuan, up 20.67% year-on-year, while the net profit excluding non-recurring items was 1.268 billion yuan, increasing by 23.64% [5][7] - For Q1 2024, the company achieved a revenue of 5.07 billion yuan, a year-on-year increase of 23.01%, but the net profit attributable to shareholders decreased by 6.61% to 340 million yuan [5][6] - The company plans to increase its store count by 400-600 in 2024, continuing its expansion strategy [6][9] Summary by Sections Financial Performance - In 2023, the company had a total revenue of 16.29 billion yuan, with a gross profit margin of 18.1%. The diluted EPS was 1.21 yuan, and the return on equity was 21.09% [5][8] - The revenue from the franchise business was 11.972 billion yuan, accounting for 73.49% of total revenue, with a year-on-year growth of 44.31%. The e-commerce segment generated 2.508 billion yuan, growing by 62.25% [7][10] Store Expansion - The company added a net of 490 stores in 2023, with a total of 5,129 stores by the end of Q1 2024. The franchise stores accounted for the majority of the new openings [9][10] Dividend Policy - The company proposed a cash dividend of 6.5 yuan per 10 shares for 2023, reflecting a commitment to shareholder returns [6][7] Future Projections - For 2024, the company expects revenue growth of 15-25% and net profit growth of 5-15%. The projected net profit for 2024 is 1.49 billion yuan [6][8]