TongQingLou Catering (605108) 中邮证券·2025-03-10 16:02Investment Rating - The report initiates coverage with an "Accumulate" rating for the company [2] Core Views - The company is expected to face a significant decline in net profit for 2024, with projections of 64-93 million yuan, representing a year-on-year decrease of 70%-79%. However, revenue is anticipated to grow due to new store openings [5][6] - The company is expected to benefit from the opening of eight large new stores in 2025 and a favorable "double spring year" which is likely to boost wedding demand, leading to a substantial increase in revenue and profit [6][7] Company Overview - Latest closing price: 22.22 yuan - Total shares: 260 million, with a market capitalization of 5.8 billion yuan - 52-week high/low: 34.19/15.63 yuan - Debt-to-asset ratio: 43.8% - Price-to-earnings ratio: 18.99 [4] Financial Projections - Revenue growth rates for 2024-2026 are projected at 1.3%, 22.6%, and 15.0% respectively - Net profit growth rates are projected at -77%, 244%, and 53% respectively - Earnings per share (EPS) are expected to be 0.27, 0.93, and 1.43 yuan for 2024, 2025, and 2026 respectively, with corresponding price-to-earnings ratios of 82x, 24x, and 16x [7][10]