LBX(SH:603883) EBSCN·2025-05-26 14:45Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is exploring a second growth curve through diversified strategies and deep integration of digital intelligence systems [1][9] - The company has faced short-term performance pressure due to multiple factors, but the Torch project has improved gross margins [6] - The company is focusing on expanding its store network and optimizing its layout, with steady growth in its franchise business [7] Financial Performance Summary - For the year 2024, the company reported revenue, net profit attributable to shareholders, and net profit excluding non-recurring items of 22.36 billion, 519 million, and 496 million yuan respectively, showing a year-on-year change of -0.36%, -44.13%, and -41.18% [5] - The company announced a profit distribution plan, proposing a cash dividend of 0.8 yuan per 10 shares [5] - In Q1 2025, the company achieved revenue, net profit attributable to shareholders, and net profit excluding non-recurring items of 5.43 billion, 251 million, and 243 million yuan respectively, with year-on-year changes of -1.88%, -21.98%, and -21.59% [5] Operational Insights - The company has increased its store count to 15,277 by the end of 2024, with a focus on expanding in 11 key provinces [7] - The company has optimized its store layout by closing underperforming stores and increasing the proportion of franchise operations [7] - The company is enhancing its digital intelligence system to improve operational efficiency and cost optimization [8] Growth Projections - The company is expected to achieve long-term stable growth driven by its franchise business and the Torch project, which has effectively improved gross margins [9] - The revenue forecast for 2025 is set at 23.81 billion yuan, with a growth rate of 6.50% [10] - The net profit forecast for 2025 is 702 million yuan, reflecting a growth rate of 35.29% compared to 2024 [10] Valuation Metrics - The current price corresponds to a P/E ratio of 20 for 2025, 17 for 2026, and 15 for 2027 [9] - The company’s estimated P/B ratio is projected to be 2.0 in 2025, 1.9 in 2026, and 1.8 in 2027 [10]