Breo(SH:688793) Changjiang Securities·2024-02-24 16:00Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company has significantly increased its revenue by 42.38% year-on-year, achieving a total revenue of 1.276 billion yuan in 2023. The net profit attributable to the parent company was -47.89 million yuan, indicating a substantial reduction in losses compared to the previous year [10][11]. - The company is actively optimizing its franchise model and expanding its market presence through partnerships with provincial retail service providers, which is expected to enhance brand recognition and penetrate lower-tier markets [6][10]. - The company has introduced several new products, which have contributed to revenue growth, and has implemented various marketing strategies to boost sales [11][29]. Summary by Sections Financial Performance - In 2023, the company reported a total revenue of 1.276 billion yuan, a 42.38% increase from the previous year. The quarterly growth rates were -7.93%, 76.08%, 79.81%, and 35.22% respectively [10][11]. - The company’s gross profit margin improved, but the net profit attributable to the parent company remained negative at -47.89 million yuan, although this represents a significant reduction in losses compared to the previous year [10][11]. Market Strategy - The company is focusing on enhancing its brand presence through new product launches and optimizing its distribution channels, including a new franchise model with provincial retail service providers [6][11]. - The marketing strategies include various promotional activities and collaborations with platforms like Douyin and Meituan to drive sales [11][29]. Future Outlook - The company is expected to achieve net profits of 101 million yuan and 135 million yuan in 2024 and 2025, respectively, with corresponding price-to-earnings ratios of 24.5 and 18.3 times [29].