Winka Times(SH:603101) Orient Securities·2026-02-13 14:55Investment Rating - The report gives a "Buy" rating for the company for the first time [5]. Core Insights - The company is a leading commercial entity in Xinjiang, focusing on the low-altitude economy and retail sector [2][8]. - The company has a stable business structure with supermarkets and department stores as core components, and it is responding to consumer demand by accelerating business transformation and enhancing supply chain management [8][9]. - The report predicts a positive trend in profitability, with expected earnings per share (EPS) of 0.18, 0.31, and 0.39 yuan for 2025, 2026, and 2027 respectively, and a target price of 12.09 yuan based on a 39 times price-to-earnings (PE) ratio for 2026 [8][9]. Financial Forecast and Investment Recommendations - The company's financial information for 2023 to 2027 shows projected revenue growth, with 2023 revenue at 2,494 million yuan, expected to decline slightly in 2024 to 2,409 million yuan, and then gradually increase to 2,746 million yuan by 2027 [4]. - Operating profit is forecasted to rise significantly from 199 million yuan in 2023 to 243 million yuan in 2027, reflecting a strong recovery in profitability [4]. - The net profit attributable to the parent company is expected to follow a similar trend, increasing from 162 million yuan in 2023 to 183 million yuan in 2027 [4]. - The report highlights a significant recovery in net profit margin, projected to rise from 2.4% in 2024 to 6.7% in 2027, indicating improved operational efficiency [4][8]. Company Overview - The company has been operating for 25 years, establishing itself as a leader in the Xinjiang retail market with a diverse portfolio including shopping centers, department stores, and supermarkets [12][16]. - As of mid-2025, the company operates 5 shopping centers, 6 department stores, and 11 independent supermarkets, covering a total area of over 1.07 million square meters [16][12]. - The company has a stable shareholding structure, with the founder maintaining significant control, which contributes to consistent management and strategic direction [20][23]. Market and Policy Environment - The retail industry is entering a new development phase supported by government policies aimed at boosting domestic consumption, with the company positioned to benefit from these trends [48][49]. - The report notes that the retail sector is a key focus for stimulating domestic demand, with expectations for improved performance as supportive policies are implemented [48][49]. - The company is also leveraging advancements in AI and low-altitude economy initiatives to enhance operational efficiency and supply chain capabilities [8][9].