TongQingLou Catering (SH:605108) Changjiang Securities·2025-05-05 12:45Investment Rating - The report maintains a "Buy" rating for the company [9][12]. Core Insights - In 2024, the company achieved operating revenue of 2.525 billion yuan, a year-on-year increase of 5.14%, while the net profit attributable to the parent company was 94 million yuan, a year-on-year decrease of 63.05% [2][6]. - For Q1 2025, the company reported operating revenue of 692 million yuan, a slight year-on-year increase of 0.17%, with a net profit attributable to the parent company of 48 million yuan, down 25.96% year-on-year [6]. - The company's three-pronged growth strategy is taking shape, with its restaurant, hotel, and food businesses complementing each other, focusing on social dining and accommodation experiences that align with consumer demand for value [2][12]. - The company plans to expand its store network and innovate its food product offerings, which are expected to drive long-term growth [2][12]. Financial Performance Summary - The company’s food business saw significant growth, with sales revenue reaching 311 million yuan in 2024, a year-on-year increase of 86% [12]. - The company opened 8 new stores in 2024, including 4 in the restaurant sector and 4 hotels, while also renovating 10 existing restaurants to enhance competitiveness [12]. - The gross profit margin decreased by 7.46 percentage points, leading to a net profit margin decline of 8.7 percentage points to 3.96% in 2024 [12]. - The forecast for net profit attributable to the parent company for 2025-2027 is 230 million, 345 million, and 446 million yuan, respectively, with corresponding PE ratios of 24X, 16X, and 12X [2][12].