Bestore(SH:603719) EBSCN·2025-05-06 08:13Investment Rating - The report downgrades the investment rating to "Accumulate" [4][6] Core Views - The company reported a total revenue of 7.159 billion yuan for 2024, a year-on-year decrease of 11.02%, and a net loss attributable to shareholders of 46 million yuan, compared to a profit of 180 million yuan in the same period last year [1] - The first quarter of 2025 saw a revenue of 1.732 billion yuan, down 29.34% year-on-year, with a net loss of 36 million yuan, contrasting with a profit of 62 million yuan in the same quarter of 2024 [1][2] - The company is undergoing adjustments across various business lines due to intensified competition and the impact of the Spring Festival timing [2] Revenue Analysis - In Q1 2025, online and offline channels generated revenues of 901 million yuan and 1.038 billion yuan, respectively, reflecting declines of 30.00% and 28.83% year-on-year [2] - The total number of stores decreased by 123 from the end of 2024, with 2,581 stores remaining as of the end of Q1 2025 [2] Profitability Metrics - The gross margin for 2024 was 26.14%, with a decline in Q1 2025 to 24.64%, down 1.78 percentage points year-on-year [3] - The net profit margin for 2024 was -0.64%, indicating continued pressure on profitability [3] Earnings Forecast and Valuation - The net profit forecasts for 2025 and 2026 have been significantly reduced to 20 million yuan and 122 million yuan, respectively, representing decreases of 93.7% and 66.5% from previous estimates [4] - The projected EPS for 2025 is 0.05 yuan, with a P/E ratio of 237 times based on the current stock price [4][11]