King's Luck(SH:603369) Huaxin Securities·2025-05-08 01:23Investment Rating - The report maintains a "Buy" investment rating for the company [7] Core Views - The company's performance is in line with expectations, showing steady growth. In 2024, total revenue and net profit attributable to shareholders were 115.46 billion and 34.12 billion yuan, respectively, representing year-on-year increases of 14% and 9% [5] - The company is expected to continue its growth trajectory, with projected EPS for 2025-2027 being 2.95, 3.24, and 3.60 yuan, respectively, corresponding to PE ratios of 16, 15, and 13 times [7] Summary by Sections Financial Performance - In Q1 2025, total revenue and net profit were 50.99 billion and 16.44 billion yuan, with year-on-year growth of 9% and 7% [5] - The company's gross margin and net margin for 2024 were 75% and 30%, with slight declines in 2025 Q1 [5] - Operating cash flow showed significant improvement, with Q1 2025 operating cash flow of 14.27 billion yuan, up 42% year-on-year [5] Product and Channel Performance - Revenue from key product categories in 2024 showed positive growth, with the premium A category growing by 15.17% [6] - Direct sales and wholesale revenue in 2024 were 2.73 billion and 112.05 billion yuan, reflecting increases of 20.78% and 14.19% [6] Earnings Forecast - The company is expected to maintain its growth momentum post surpassing 100 billion yuan in revenue, with a forecasted revenue growth rate of 9.3% for 2025 [10] - The projected net profit growth rates for 2025-2027 are 7.8%, 9.9%, and 10.9%, respectively [10]