LFX(SH:600612) Wanlian Securities·2024-03-06 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company reported a 30% year-on-year increase in net profit attributable to shareholders for 2023, with total revenue reaching 71.436 billion yuan, a 13.37% increase year-on-year. The net profit attributable to shareholders was 2.214 billion yuan, reflecting a 30.23% increase year-on-year, although the annual performance was slightly below expectations [3] - In the fourth quarter of 2023, the company experienced a revenue of 9.370 billion yuan, a decrease of 1.08% year-on-year, and a net profit of 250 million yuan, down 27.41% year-on-year, indicating pressure on Q4 performance [3] - The company plans to accelerate store openings in the second half of the year, with a total of 5,994 marketing outlets globally by the end of 2023, an increase of 385 outlets from the end of 2022, with 363 of those added in the second half of the year [3] - The company continues to innovate in gold jewelry product design and production, benefiting from a recovering domestic consumption market and a booming gold jewelry industry [3] - Short-term prospects are positive due to the recovery of domestic gold jewelry consumption and rising gold prices, while medium to long-term growth is expected from product innovation and the implementation of a three-year action plan under state-owned enterprise reform [3] Financial Forecasts - The company’s net profit forecasts for 2023-2025 are adjusted to 2.214 billion, 2.621 billion, and 2.989 billion yuan respectively, with corresponding EPS of 4.23, 5.01, and 5.71 yuan per share [3] - The PE ratios based on the closing price on March 5, 2024, are projected to be 17, 14, and 13 times for 2023, 2024, and 2025 respectively [3]