CBEST(SH:600729) Xin Lang Cai Jing·2025-04-23 08:25Core Viewpoint - The company reported a decline in revenue for 2024, but showed resilience in net profit and operational adjustments across its business segments, indicating potential for future growth [1][2][3]. Financial Performance - In 2024, the company achieved revenue of 17.14 billion, a year-on-year decrease of 9.8%, while net profit attributable to shareholders was 1.31 billion, up 0.5% year-on-year [1]. - The fourth quarter of 2024 saw revenue of 4.14 billion, a slight decline of 1.7% year-on-year, but net profit surged by 109.7% to 390 million [1]. - The company's gross profit margin improved to 26.5%, an increase of 0.8 percentage points year-on-year, primarily due to a decrease in the proportion of low-margin automotive trading business [2]. Business Segment Analysis - Revenue breakdown for 2024 showed the following performance across four main segments: - Department stores: 1.77 billion, down 12.2% - Supermarkets: 6.16 billion, down 0.3% - Electronics: 3.30 billion, up 12.9% - Automotive trading: 4.29 billion, down 29.5% [1]. - The department store segment faced intensified competition and margin pressure, while the supermarket segment benefited from operational adjustments in 10 stores, achieving double-digit growth [1][2]. Future Outlook - The company is optimistic about the ongoing adjustments in its business segments, with plans to continue transforming the department store segment and further improving supermarket operations in 2025 [2]. - The electronics segment is expected to benefit from expanded national subsidies, while the automotive trading segment is undergoing structural changes to enhance performance [2]. Investment Insights - The company is positioned to benefit from a resilient consumer market in Chongqing and effective adjustments across its business segments, suggesting a stable growth trajectory for future earnings [3]. - Profit forecasts for 2025 and 2026 are projected at 1.38 billion and 1.47 billion, respectively, with a current valuation of 11x, indicating a safety margin for investors [3].