Investment Rating - The report maintains an "Overweight" rating for the company [1] Core Views - The company is partnering with Xinxuan Holdings to expand into live-streaming e-commerce, leveraging its extensive offline retail experience and Xinxuan's strong influence in live-streaming platforms [2] - The joint venture, Hangzhou Lianqi Future Co Ltd, will be 45% owned by the company and its management team, with Xinxuan Holdings holding 10% [2] - The joint venture aims to synergize the company's offline retail expertise with Xinxuan's live-streaming capabilities, particularly in the maternal and child lifestyle category, which accounts for approximately 80% of Xinxuan's annual GMV (around 40 billion yuan) [2] Financial Projections - Revenue is expected to grow from 8,752.59 million yuan in 2023 to 11,241.66 million yuan in 2026, with a CAGR of 14.48% from 2024 to 2026 [4] - Net profit attributable to shareholders is projected to increase from 105 million yuan in 2023 to 366 million yuan in 2026, with a significant growth rate of 100.23% in 2024 [4] - EPS is forecasted to rise from 0.10 yuan in 2023 to 0.33 yuan in 2026 [4] - ROE is expected to improve from 3.35% in 2023 to 10.31% in 2026 [4] Operational Metrics - The company's gross margin is projected to remain stable, ranging from 29.6% in 2023 to 30.4% in 2026 [5] - Operating margin is expected to increase from 1.7% in 2023 to 4.3% in 2026 [5] - The company's asset turnover efficiency is improving, with total asset turnover days decreasing from 359 days in 2023 to 327 days in 2026 [5] Valuation Metrics - The company's PE ratio is expected to decline from 85.17X in 2023 to 34.01X in 2026, reflecting improved profitability [4] - PB ratio is projected to decrease from 2.90X in 2023 to 3.51X in 2026 [4] - EV/EBITDA is forecasted to drop from 12.2X in 2023 to 10.6X in 2026 [5]
孩子王：合作辛选控股，发力直播电商