Hongqi Chain(SZ:002697) EBSCN·2025-04-21 13:45Investment Rating - The report maintains a "Buy" rating for the company [4] Core Insights - The company experienced a slight decline in revenue and net profit in 2024, with revenue at 10.123 billion yuan, down 0.09% year-on-year, and net profit at 521 million yuan, down 7.12% year-on-year [1] - The company is focusing on AI technology to enhance operational efficiency across various business areas, including supply chain and inventory management [3] - The company has adjusted its profit forecasts for 2025 and 2026 downwards by 7.0% and 6.3% respectively, while introducing a new forecast for 2027 [4] Revenue and Profitability - In 2024, the company's main business revenue was 9.371 billion yuan, showing a year-on-year growth of 0.23% [3] - The comprehensive gross margin for 2024 was 29.35%, a decrease of 0.29 percentage points year-on-year [2] - The net profit for 1Q2025 was 157 million yuan, a decrease of 4.15% year-on-year [1] Financial Projections - The company’s revenue is projected to grow to 10.460 billion yuan in 2025, representing a growth rate of 3.33% [5] - The estimated net profit for 2025 is 580 million yuan, reflecting an increase of 11.36% compared to 2024 [5] - The report provides a detailed financial summary, including projected EPS and ROE figures for the coming years [10][12] Market Position and Strategy - The company is recognized as a well-known convenience store brand in the Sichuan region, continuously optimizing store services and exploring AI applications [4] - The company has successfully generated over 1 billion yuan in sales through Douyin live streaming in 2024 [3] - The company is also developing a vending machine system to complement traditional retail and attract new consumer groups [3]