Soochow Securities·2026-01-16 09:17Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company reported a narrowing decline in Q4 revenue, with expectations for profit margins in 2025 to exceed forecasts [1] - The company has adjusted its net profit forecasts for 2025-2027, increasing them to 2.68 billion, 2.86 billion, and 3.05 billion RMB respectively, corresponding to P/E ratios of 17, 16, and 15 [1] Financial Performance Summary - Total revenue for 2023 is projected at 27.6 billion RMB, with a year-on-year growth of 6.96% - Net profit attributable to shareholders for 2023 is expected to be 3.19 billion RMB, reflecting a year-on-year decline of 21.58% - The latest diluted EPS for 2023 is estimated at 1.23 RMB, with a P/E ratio of 14.43 [1][8] Operational Insights - In Q4, the company's overall retail revenue (excluding young segment) saw a low single-digit year-on-year decline, with offline and e-commerce channels experiencing middle single-digit and flat year-on-year changes respectively [1] - The company opened its first outdoor store and "Dragon Store" in November and December 2025, respectively, targeting new customer segments [1] - The company aims to improve profitability by closing loss-making stores and enhancing cost efficiency [1]