Waton Financial·2025-11-14 13:16Investment Rating - The investment rating for the company is "Hold" [1] Core Insights - The report highlights that the company's revenue has reached a three-year high, although profitability is under pressure due to the expansion of new business segments [2] Financial Performance - The projected revenue for 2024 is 1,158,819 million RMB, with a growth rate of 6.84%. This is expected to increase to 1,228,348 million RMB in 2025, 1,289,765 million RMB in 2026, and 1,341,355 million RMB in 2027, reflecting a gradual decline in growth rates to 4.00% by 2027 [4][6] - Operating profit is forecasted to rise from 39,570 million RMB in 2024 to 44,510 million RMB in 2027, with a significant increase of 36.79% in 2024 [4][6] - Net profit attributable to the parent company is expected to grow from 41,359 million RMB in 2024 to 46,519 million RMB in 2027, with a notable increase of 63.87% in 2024 [4][6] Business Development - The company is focusing on optimizing its revenue structure, enhancing its core retail business, and expanding into new areas such as JD Delivery and logistics [8][9] - The report emphasizes the importance of the retail business as the core pillar, while also highlighting the potential of new business segments [9] Financial Ratios - The operating profit margin is projected to slightly decline from 3.41% in 2024 to 3.32% in 2027, indicating a gradual decrease in profitability [6] - The net profit margin is also expected to decrease from 3.57% in 2024 to 3.47% in 2027 [6] - The price-to-earnings (P/E) ratio is forecasted to fluctuate, starting at 9.59 in 2024 and dropping to 7.36 by 2027, suggesting a potential undervaluation over time [6]