Bestore(603719) Huaxin Securities·2024-07-12 01:00Investment Rating - The report maintains a "Buy" investment rating for the company [3][16]. Core Views - The company is undergoing a strategic adjustment phase, which has led to a decline in gross profit due to pricing strategies aimed at market penetration. Despite this, there has been a noticeable increase in customer transaction volume [14][15]. - The company is expected to gradually release the effects of its adjustments as it continues to implement cost reduction and efficiency improvement measures across its supply chain [14][15]. - Long-term prospects remain positive due to ongoing store expansion and product innovation, with a new brand proposition for "natural and healthy snacks" expected to drive sales growth and profit improvement [16]. Financial Summary - The company's projected revenue for 2023 is 8,046 million, with expected growth rates of -14.8% for 2023, 13.2% for 2024, 12.0% for 2025, and 10.6% for 2026 [5]. - The forecasted net profit attributable to shareholders for 2023 is 180 million, with growth rates of -46.3% for 2023, 10.5% for 2024, 19.4% for 2025, and 17.0% for 2026 [5]. - The diluted earnings per share (EPS) are projected to be 0.45 for 2023, increasing to 0.50 in 2024, 0.59 in 2025, and 0.69 in 2026 [5][16]. - The return on equity (ROE) is expected to improve from 7.2% in 2023 to 9.3% by 2026 [5].