King's Luck(SH:603369) Changjiang Securities·2025-05-21 10:11Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Views - The company is expected to achieve a total operating revenue of 11.546 billion yuan in 2024, representing a year-on-year increase of 14.31%. The net profit attributable to the parent company is projected to be 3.412 billion yuan, up 8.8% year-on-year [2][6] - For Q1 2025, the company anticipates an operating revenue of 5.099 billion yuan, reflecting a year-on-year growth of 9.17%, with a net profit of 1.644 billion yuan, an increase of 7.27% year-on-year [2][6] - The company aims for a revenue growth of 5%-12% in 2025, with net profit growth slightly lower than revenue growth [12] Financial Performance Summary - In 2024, the company’s revenue breakdown shows that the Special A category continues to lead growth, with Special A+ category revenue at 7.491 billion yuan (up 15.17%), Special A category at 3.347 billion yuan (up 16.61%), and A category at 419 million yuan (up 1.95%) [12] - The company’s profit growth is slower than revenue growth, primarily due to increased discounts affecting gross margin, which decreased by 3.6 percentage points to 74.75% in 2024 [12] - The company’s net profit margin for 2024 declined by 1.5 percentage points to 29.55% [12] Regional and Product Performance - Revenue from outside the province outpaced that from within the province, with 2024 provincial revenue at 10.618 billion yuan (up 13.31%) and non-provincial revenue at 926 million yuan (up 27.37%) [12] - In Q1 2025, provincial revenue was 4.642 billion yuan (up 8.45%) while non-provincial revenue was 437 million yuan (up 19.04%) [12] Future Outlook - The company has set reasonable targets for 2025, with expectations for continued market share growth in provincial areas and strong potential for expansion in non-provincial markets [12] - The projected EPS for 2025 and 2026 is 2.94 yuan and 3.18 yuan, respectively, corresponding to a PE ratio of 16 and 15 times [12]