Investment Rating - The investment rating for the company is "Outperform the Market" [18] Core Insights - The company reported a revenue of 5.9 billion yuan in 2023, representing a year-on-year growth of 33.6%, and a net profit of 333 million yuan, which is a 67.4% increase year-on-year [14][9] - The company aims to increase its franchise stores by 300 in 2024, with a long-term goal of reaching 2,000 stores by 2025 [7][16] - The jewelry segment showed a revenue of 5.5 billion yuan in 2023, with a net profit of 360 million yuan, indicating a 36% increase [8] Financial Performance Summary - Revenue (in million yuan): - 2022: 4,417 - 2023: 5,900 - 2024E: 7,203 - 2025E: 8,504 - 2026E: 9,637 - Net Profit (in million yuan): - 2022: 199 - 2023: 333 - 2024E: 444 - 2025E: 523 - 2026E: 592 - EPS (in yuan): - 2022: 0.22 - 2023: 0.38 - 2024E: 0.50 - 2025E: 0.59 - 2026E: 0.67 - Gross Margin (%): - 2023: 26.1% - 2024E: 24.6% - 2025E: 23.2% - 2026E: 22.2% - Return on Equity (%): - 2023: 9.2% - 2024E: 11.2% - 2025E: 12.4% - 2026E: 13.0% [4][14][9] Segment Performance - Fashion Jewelry: - 2023 Revenue: 2.99 billion yuan (+20.4% YoY), Gross Margin: 30.7% - Traditional Gold Jewelry: - 2023 Revenue: 2.26 billion yuan (+56.8% YoY), Gross Margin: 8.7% - Leather Goods: - 2023 Revenue: 370 million yuan (+14.4% YoY), Gross Margin: 63.5% [7][8] Quarterly Performance - In Q1 2024, the company achieved a revenue of 1.8 billion yuan (+18% YoY) and a net profit of 131 million yuan (+5.47% YoY) [9][15]

Investment Rating - The investment rating for the company is "Buy" [9][26]. Core Views - The company's revenue from gold and jewelry business has seen significant growth, while the women's bag business is under short-term pressure. The company is actively exploring the cultivated diamond market [2]. - In 2023, the company achieved a revenue of 59.00 billion yuan, a year-on-year increase of 33.56%, with a net profit attributable to shareholders of 3.33 billion yuan, up 67.41% year-on-year [21]. - The company has launched several new products in the fashion jewelry and traditional gold jewelry categories, with revenues of 29.89 billion yuan and 22.65 billion yuan respectively, reflecting year-on-year growth of 20.43% and 56.75% [2]. Summary by Sections Business Performance - The company has strengthened its operations in the fashion product category, launching several new national style series products [2]. - The revenue from the leather goods segment was 3.71 billion yuan in 2023, with a year-on-year increase of 14.41% [2]. - The company has actively explored the cultivated diamond market, launching new brands and products in collaboration with a joint venture [2]. Financial Forecast - The earnings per share (EPS) for 2024-2026 are projected to be 0.43, 0.49, and 0.56 yuan per share respectively, with corresponding price-to-earnings (PE) ratios of 15, 13, and 11 times based on the stock price as of May 6, 2024 [9]. - The company expects revenue growth rates of 14.79%, 13.80%, and 13.33% for the years 2024, 2025, and 2026 respectively [22]. Market Strategy - The company is expanding its offline presence by increasing the number of jewelry franchise stores and enhancing its online sales through live streaming and other digital marketing strategies [14]. - In 2023, the company added 293 new jewelry franchise stores and achieved online sales revenue of 12.24 billion yuan, a year-on-year increase of 14.91% [14].

Investment Rating - The investment rating for the company is "Buy-A" with a 6-month target price of 7.82 CNY [5][8]. Core Views - The company has experienced a significant increase in revenue and net profit in 2023, with a revenue of 5.90 billion CNY (+33.56%) and a net profit of 0.33 billion CNY (+67.41%) [14]. - The company plans to accelerate its franchise channel expansion and aims to open 300 new franchise stores in 2024 [4][17]. - The gross margin has declined due to changes in the business structure, with a gross margin of 26.07% in 2023, down 4.11 percentage points [15]. Financial Performance Summary - In 2023, the company achieved a total revenue of 5,899.9 million CNY, with a projected revenue growth of 17.6% for 2024 and 2025, and 14.2% for 2026 [9][11]. - The net profit for 2023 was 333.3 million CNY, with expected growth rates of 38.9%, 18.6%, and 11.5% for the years 2024, 2025, and 2026 respectively [9][11]. - The company’s earnings per share (EPS) is projected to increase from 0.38 CNY in 2023 to 0.69 CNY by 2026 [9][11]. Business Structure and Channel Performance - The company’s self-operated revenue in 2023 was 3.26 billion CNY (+14.53%), while franchise revenue reached 2.48 billion CNY (+67.52%) [16]. - The company had a total of 1,399 jewelry stores by the end of 2023, with a net increase of 241 stores [16]. - The traditional gold jewelry segment showed strong growth, with revenue of 2.27 billion CNY (+56.75%) [16].

Investment Rating - The report maintains an "Accumulate-A" rating for the company, indicating an expected price increase relative to the benchmark index [1][19]. Core Views - The company achieved a revenue of 5.9 billion yuan in 2023, representing a year-on-year growth of 33.56%, and a net profit attributable to shareholders of 333 million yuan, up 67.41% year-on-year [1][14]. - In Q1 2024, the company reported a revenue of 1.796 billion yuan, a year-on-year increase of 17.87%, with a net profit of 131 million yuan, growing 5.47% year-on-year [1][14]. - The company plans to distribute a cash dividend of 2.5 yuan per 10 shares to all shareholders [1]. Financial Performance - The total market capitalization of the company is 5.535 billion yuan [2]. - The company’s revenue is projected to reach 7.061 billion yuan in 2024, with a year-on-year growth of 19.7% [20]. - The net profit for 2024 is estimated at 406 million yuan, reflecting a year-on-year increase of 21.7% [20]. - The gross margin for 2023 was 26.1%, down 4.1 percentage points from the previous year, primarily due to an increase in the sales proportion of lower-margin gold jewelry products [18][19]. Business Expansion - The company is actively expanding its offline channels, with a target of reaching 2,000 stores by 2025 [19]. - Online sales for the jewelry business reached 1.055 billion yuan in 2023, marking a year-on-year growth of 14.84% [13][19]. - The company has seen a significant increase in revenue from its wholesale channel, which grew by 57.63% year-on-year [13]. Product Performance - Revenue from fashion jewelry reached 2.989 billion yuan in 2023, up 20.43% year-on-year, while traditional gold jewelry revenue increased by 56.75% to 2.265 billion yuan [15]. - The company is focusing on enhancing its gold product line and has initiated a brand image upgrade for its leather goods business [15][19]. Cash Flow and Efficiency - The net cash flow from operating activities for 2023 was 615 million yuan, a 48.7% increase year-on-year [18][24]. - Inventory turnover days improved to 221 days, a reduction of 94 days year-on-year [18].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 6.15 RMB [17][27]. Core Insights - The company reported a revenue of 5.9 billion RMB in 2023, a year-on-year increase of 33.56%, and a net profit attributable to shareholders of 333 million RMB, up 67.41% year-on-year [27]. - The first quarter of 2024 showed stable growth with revenue and net profit increasing by 18% and 5.5% respectively, despite a high base from the previous year [18]. - The company is focusing on product upgrades and expanding its franchise network, aiming for 2,000 jewelry stores by 2025 [28]. Financial Summary - Revenue (in million RMB): - 2022: 4,417 - 2023: 5,900 - 2024E: 7,067 - 2025E: 8,282 - 2026E: 9,544 - Revenue Growth Rate: - 2022: -4.73% - 2023: 33.56% - 2024E: 19.78% - 2025E: 17.19% - 2026E: 15.24% [6] - Net Profit (in million RMB): - 2022: 199 - 2023: 333 - 2024E: 444 - 2025E: 529 - 2026E: 617 - Net Profit Growth Rate: - 2022: -43.22% - 2023: 67.41% - 2024E: 33.09% - 2025E: 19.34% - 2026E: 16.54% [6] - Diluted Earnings Per Share (in RMB): - 2022: 0.224 - 2023: 0.375 - 2024E: 0.499 - 2025E: 0.596 - 2026E: 0.694 [6] - Price-to-Earnings Ratio (P/E): - 2022: 23.47 - 2023: 18.15 - 2024E: 12.32 - 2025E: 10.32 - 2026E: 8.86 [6]

Investment Rating - The report maintains a "Buy" rating for the company [3][4]. Core Views - The company is adjusting its profit forecasts due to high gold prices affecting demand for gold jewelry and short-term sales of non-gold categories being constrained by economic weakness. Revenue projections for 2024-2026 are set at 68.7 billion, 77.2 billion, and 85.9 billion yuan, with year-on-year growth rates of 16.5%, 12.4%, and 11.2% respectively. Net profit is expected to be 4.3 billion, 4.8 billion, and 5.3 billion yuan, with growth rates of 29.4%, 10.5%, and 10.2% respectively. EPS is projected at 0.49, 0.54, and 0.59 yuan, corresponding to P/E ratios of 12.7, 11.5, and 10.4 [2][5]. Financial Performance Summary - In Q4 2023, the company achieved revenue of 1.401 billion yuan, a year-on-year increase of 35.14%, and a net profit of 0.2 billion yuan, up 157.23%. However, profit performance was below expectations due to lower-than-expected performance in the women's bag business and a goodwill impairment of 0.39 billion yuan. In Q1 2024, revenue reached 1.796 billion yuan, a 17.87% year-on-year increase, with a net profit of 0.131 billion yuan, a 5.47% increase, which was in line with expectations [2][5]. Margin and Cost Structure - The company's gross margin in Q1 2024 was 24.92%, down 3.11 percentage points year-on-year, and the net margin was 7.35%, down 0.99 percentage points year-on-year. The decline in gross margin is attributed to changes in product structure, including an increase in the proportion of traditional gold jewelry and a rise in the share of one-price gold in fashion jewelry. Despite this, the expansion of the franchise model has led to lower expense levels, which is beneficial for profit margins [2][5]. Store Expansion and Growth Logic - In 2023, the company accelerated its store expansion, opening a net of 241 new stores, representing a 20.8% year-on-year increase. The number of self-operated stores decreased by 50, while franchise stores increased by 291. The current low base of stores and the rapid expansion of the franchise model are expected to drive revenue growth [2][5].

Investment Rating - The investment rating for the company is "Buy" (maintained) with a market price of 6.15 [1]. Core Views - The company is experiencing rapid growth in store expansion, validating its mid-term growth logic despite potential downward pressure on gross and net profit margins due to adjustments in store and product structures [3][4]. - The company has adjusted its profit forecasts, expecting revenues of 68.7 billion, 77.2 billion, and 85.9 billion yuan for 2024-2026, with year-on-year growth rates of 16.5%, 12.4%, and 11.2% respectively. The net profit attributable to the parent company is projected to be 4.3 billion, 4.8 billion, and 5.3 billion yuan for the same period, with growth rates of 29.4%, 10.5%, and 10.2% respectively [4]. Financial Summary - Total share capital is 889 million shares, with a circulating market value of 5,334 million yuan [2]. - Revenue for 2022 was 4,417 million yuan, with a forecast of 5,900 million yuan for 2023, reflecting a year-on-year growth of 33.6% [2]. - The company's earnings per share (EPS) are projected to increase from 0.38 yuan in 2023 to 0.59 yuan in 2026, with corresponding P/E ratios decreasing from 16.4 to 10.4 over the same period [2][4]. - The company reported a gross margin of 24.92% and a net margin of 7.35% in Q1 2024, with both margins showing a decline compared to the previous year [4]. Store Expansion and Growth Logic - In 2023, the company accelerated its store expansion, opening a net of 241 new stores, resulting in a 20.8% year-on-year increase in total store count. The rapid expansion is attributed to the opening of franchise opportunities [4].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected return that is stronger than the market benchmark by more than 15% [21][22]. Core Insights - The company achieved a revenue of 5.9 billion in 2023, representing a year-on-year growth of 33.6%, and a net profit attributable to shareholders of 330 million, up 67.4% year-on-year [18]. - The growth in revenue was primarily driven by a significant increase in gold jewelry sales, with fashion jewelry, traditional gold, and leather goods growing by 20.4%, 56.7%, and 14.4% respectively [18]. - The company plans to expand its store network, with a target of opening over 300 new franchise stores in 2024, aiming for a total of 2,000 stores by 2025 [18]. - The women's bag business faces challenges, with a goodwill impairment of 39.43 million and a loss of 25.12 million for the year, although brand upgrades and new store formats are being introduced to enhance brand perception [18]. - The report expresses optimism about the company's differentiated brand positioning and the potential for growth in store openings, while also anticipating a recovery in the women's bag segment [18]. Financial Projections - The earnings per share (EPS) for 2024-2026 are projected to be 0.48, 0.59, and 0.70 respectively, with a target price of 6.72 based on a 14x PE valuation for 2024 [21][22]. - Revenue is expected to grow from 7.08 billion in 2024 to 9.57 billion in 2026, with corresponding net profits increasing from 427 million to 626 million [22].

Investment Rating - The investment rating for the company is "Accumulate" [2][31]. Core Views - The company achieved a revenue of 5.9 billion yuan in 2023, representing a year-on-year growth of 33.56%, with a net profit of 333.35 million yuan, up 67.41% year-on-year [4][7]. - The company is actively seizing opportunities in the gold consumption market, leading to strong growth performance [4][11]. - The first quarter of 2024 continued the growth trend with a revenue increase of 17.87% year-on-year and a net profit increase of 5.47% year-on-year [7][31]. Financial Forecasts and Key Metrics - Revenue (in million yuan): - 2022: 4,417.41 - 2023: 5,899.85 (+33.56%) - 2024E: 7,030.38 (+19.16%) - 2025E: 8,261.75 (+17.51%) - 2026E: 9,454.14 (+14.43%) [2][21] - Net Profit (in million yuan): - 2022: 199.13 - 2023: 333.35 (+67.41%) - 2024E: 452.13 (+35.63%) - 2025E: 536.35 (+18.63%) - 2026E: 624.73 (+16.48%) [2][21] - Earnings Per Share (in yuan): - 2022: 0.22 - 2023: 0.38 - 2024E: 0.51 - 2025E: 0.60 - 2026E: 0.70 [2][21] - Key Financial Ratios: - EBIT Margin: 2023: 7.30%, 2024E: 8.19%, 2025E: 8.65%, 2026E: 9.07% [2][21] - Return on Equity (ROE): 2023: 9.18%, 2024E: 11.97%, 2025E: 13.59%, 2026E: 15.06% [2][21] - Price-to-Earnings Ratio (PE): 2023: 16.39, 2024E: 12.09, 2025E: 10.19, 2026E: 8.75 [2][21]. Business Performance - The company opened 293 new "CHJ潮宏基" jewelry franchise stores in 2023, bringing the total number of stores to 1,399 [7][31]. - Gold products accounted for 38.39% of total revenue in 2023, with sales of 2.265 billion yuan, a year-on-year increase of 56.7% [7][31]. - The franchise business saw a revenue increase of 67.55% to 2.481 billion yuan, representing 42.06% of total revenue [7][31].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance in the coming months [25]. Core Views - The company demonstrated strong sales in gold jewelry in 2023, with expectations for continued growth in 2024 [1]. - The self-operated channel revenue grew by 14.53% year-on-year to 3.26 billion yuan, driven by improved store efficiency despite a reduction in the number of self-operated stores [2]. - The traditional gold business saw a remarkable revenue increase of 56.75% year-on-year, reaching 2.26 billion yuan, as consumers favored gold jewelry for its value preservation amid rising gold prices [6]. - The company is expected to achieve a revenue growth of 17% and a profit growth of 19% in 2024, supported by stable consumer demand and ongoing expansion of its franchise operations [11]. Summary by Sections Revenue and Profitability - In 2023, the company reported a revenue increase of 33.6% to 5.9 billion yuan, with a net profit growth of 67.4% to 330 million yuan [22]. - The gross margin decreased by 4.1 percentage points to 26.1%, attributed to changes in channel and product mix [22]. - The company plans to distribute cash dividends of approximately 220 million yuan, maintaining a high dividend payout ratio of 67% [22]. Product Performance - The jewelry segment's revenue increased by 20.43% year-on-year to 2.99 billion yuan, while the leather goods segment grew by 14.41% to 370 million yuan [6]. - The franchise business experienced significant growth, with revenue rising by 67.52% to 2.48 billion yuan, driven by an increase in the number of franchise stores [23]. Operational Efficiency - The company's inventory turnover days improved, decreasing by 94 days to 221 days in 2023, indicating enhanced operational efficiency [24]. - The net cash flow from operating activities increased by 48.6% year-on-year to 620 million yuan, reflecting a solid operational performance [24]. Financial Forecast - The company is projected to achieve net profits of 397 million yuan, 464 million yuan, and 539 million yuan for the years 2024, 2025, and 2026, respectively [29]. - The current stock price corresponds to a price-to-earnings ratio of 14 times for 2024, suggesting potential for investment [29].