Huangshanghuang(SZ:002695) Huaxin Securities·2024-03-11 16:00Investment Rating - The report maintains a "Buy" investment rating for the company [4][8]. Core Insights - The company is experiencing a significant increase in profitability, primarily due to a decrease in raw material costs and a reduction in promotional expenses, leading to a 129% year-on-year increase in net profit for 2023 [5]. - The "Thousand Cities, Ten Thousand Stores" strategy is progressing steadily, with improvements in operational efficiency becoming apparent [7]. - The company anticipates a return to positive growth starting in 2024, with rapid store expansion and increasing market concentration [8]. Summary by Sections Financial Performance - In 2023, the company achieved revenue of 1.921 billion yuan, a decrease of 1.7% year-on-year, while net profit attributable to shareholders reached 71 million yuan, an increase of 129% [5][11]. - The fourth quarter of 2023 saw revenue of 340 million yuan, a 1.2% increase year-on-year, with a net loss of 30 million yuan, improving from a loss of 54 million yuan in the same quarter of 2022 [5]. Strategic Initiatives - The company is accelerating store expansion and enhancing store construction, with same-store sales in the meat processing segment showing recovery [7]. - The rice product business has stopped its revenue decline, achieving a 5.31% year-on-year growth in 2023 [7]. Earnings Forecast - The company expects earnings per share (EPS) of 0.25 yuan in 2024 and 0.32 yuan in 2025, with corresponding price-to-earnings (PE) ratios of 33 and 26 times [8][11].