LFX(SH:600612) Xinda Securities·2025-04-29 08:27Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company's performance in the gold jewelry business has been significantly impacted by fluctuations in gold prices, leading to a decline in revenue and profit [1][2] - The overall gold consumption in China decreased by 9.58% in 2024, with gold jewelry consumption dropping by 24.69% [2] - The company has adjusted its production and operational strategies in response to the weak market, focusing on product innovation [2] Financial Performance Summary - In 2024, the company achieved a revenue of 567.93 billion yuan, a year-on-year decrease of 20.5%, and a net profit attributable to shareholders of 19.5 billion yuan, down 11.95% [1] - For Q4 2024, revenue was 42.11 billion yuan, down 55%, and net profit was 1.74 billion yuan, down 30% [1] - In Q1 2025, revenue was 175.21 billion yuan, down 32%, and net profit was 6.13 billion yuan, down 24% [1] - The gross profit margin for Q1 2025 was 9.06%, an increase of 0.69 percentage points year-on-year [1] Business Segment Performance - The wholesale business was the main drag on revenue, with wholesale and retail revenues of 443.62 billion yuan and 28.27 billion yuan, down 18.31% and 31.28% respectively [3] - The number of stores decreased to 5,838 by the end of 2024, with a net closure of 156 stores [3] Future Outlook - The company has set a revenue target of 490 billion yuan for 2025, representing a year-on-year decrease of 14%, and a net profit target of 14.7 billion yuan, also down 25% [3] - Revenue projections for 2025, 2026, and 2027 are 491 billion yuan, 511 billion yuan, and 535 billion yuan, with corresponding net profits of 15.96 billion yuan, 16.64 billion yuan, and 17.62 billion yuan [3]