SBGCL(SH:600827) CSC SECURITIES (HK) LTD·2024-09-30 08:00Investment Rating - The investment rating for the company is "Buy" [1][5]. Core Insights - The company is accelerating its business transformation, and the issuance of consumption vouchers in Shanghai is expected to aid in the recovery of its operations [4]. - Despite a slight decline in consumer activity, the company is focusing on upgrading its retail terminals and optimizing its asset management through REITs [4]. - The issuance of a total of 500 million RMB in consumption vouchers is anticipated to boost revenue in various sectors, particularly in department stores and shopping centers [4]. Financial Summary - The company's net profit for 2023 is projected to be 399 million RMB, with a significant increase to 1.452 billion RMB in 2024, followed by a decrease to 437 million RMB in 2025 and an increase to 501 million RMB in 2026 [3]. - Earnings per share (EPS) are expected to be 0.22 RMB in 2023, 0.81 RMB in 2024, 0.25 RMB in 2025, and 0.28 RMB in 2026 [3]. - The price-to-earnings (P/E) ratio is forecasted to be 36.41 in 2023, 9.84 in 2024, 32.67 in 2025, and 28.50 in 2026 [3]. Revenue and Cost Analysis - The company's operating revenue is projected to decline from 30.519 billion RMB in 2023 to 28.764 billion RMB in 2024, with a slight recovery to 28.921 billion RMB in 2025 and 29.415 billion RMB in 2026 [8]. - Operating costs are expected to decrease from 22.421 billion RMB in 2023 to 21.408 billion RMB in 2024, with a slight increase in subsequent years [8]. - The company is also expected to see a significant increase in investment income, particularly due to the successful listing of its REITs [5].