CBEST(600729) 浙商证券·2024-11-06 08:10Investment Rating - The investment rating for Chongqing Department Store is "Buy" (maintained) [7] Core Views - Chongqing Department Store is a leading offline retailer in Chongqing, with same-store sales on the rise and new business formats opening up growth opportunities, while immediate consumption contributes marginally to growth [2] - The main business is recovering, with same-store sales improving quarter by quarter, driven by a recovering macroeconomic environment and promotional activities [3] - The company is benefiting from the "old for new" consumption policy, with significant sales growth in appliances and electronics [3] - The financial technology sector is expected to see continued high growth due to a lower base and improving economic conditions [4] - The market is overly concerned about the company's growth potential, but the management's proactive operational strategies and successful trials of new business formats are expected to drive performance [5] Summary by Sections Investment Highlights - The retail main business is recovering, with same-store sales expected to grow in Q4 due to improved consumer sentiment and promotional activities [3] - New business formats, such as discount fresh markets and lifestyle stores, are showing promising sales growth [3] - Immediate consumption is expected to continue its high growth trajectory due to a lower base from the previous year [4] Financial Forecasts and Valuation - Revenue projections for 2024-2026 are estimated at 184.72 billion, 189.62 billion, and 199.31 billion yuan, with corresponding net profits of 12.63 billion, 13.52 billion, and 15.08 billion yuan [10] - The company is currently valued at a low P/E ratio of 8X for 2024, with a target price of 34.39 yuan per share, indicating an upside potential of approximately 50% [10]