CHJ(002345) 长江证券·2024-05-20 08:32Investment Rating - The investment rating for the company is "Buy" and is maintained [18][34]. Core Insights - The company achieved a revenue of 5.9 billion yuan in 2023, representing a year-on-year growth of 33.6%, with a net profit attributable to the parent company of 330 million yuan, up 67.4% year-on-year [2][14]. - In Q1 2024, the company reported a revenue of 1.8 billion yuan, a year-on-year increase of 17.9%, and a net profit of 130 million yuan, growing 5.5% year-on-year [2][14]. - The company is expanding its store network rapidly, with a total of 1,399 jewelry stores by the end of the year, including 291 new franchise stores [16][34]. - The company aims to reach 2,000 stores by 2025, with an expected annual net increase of around 300 stores from 2024 to 2025 [34]. Financial Performance - The gross profit margin for Q1 2024 decreased by 3 percentage points to 24.9%, primarily due to an increase in the proportion of gold products and rapid expansion of the franchise business [3]. - The total gross profit for the year was 1.538 billion yuan, with a gross profit growth of 15.4% year-on-year [16]. - The company’s operating cash flow for Q1 2024 was 120 million yuan, reflecting a 2.5% year-on-year increase, aligning closely with the net profit growth [3]. Market Position and Strategy - The company is positioned as a young, fashionable jewelry brand that integrates Eastern cultural elements with modern aesthetics, which is expected to enhance brand recognition [34]. - The company has seen a significant increase in membership, with over 19 million members, and a member repurchase income ratio exceeding 50% [16][34]. - The company’s strategy includes optimizing salary performance policies and increasing advertising investments to expand its customer base [16]. Future Projections - EPS is projected to reach 0.46, 0.54, and 0.61 yuan for the years 2024, 2025, and 2026, respectively, with corresponding PE ratios of 12.9, 11.0, and 9.7 times [34].