XHCG(SH:600785) EBSCN·2024-03-21 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected investment return exceeding 15% over the next 6-12 months [3][30]. Core Insights - The company achieved a revenue growth of 3.10% year-on-year in 2023, with a significant increase in net profit attributable to shareholders by 45.59% [4][16]. - The overall gross margin for 2023 was 26.76%, up by 1.46 percentage points compared to the previous year, indicating improved profitability [9][17]. - The company has successfully expanded its offline and online channels, particularly in the appliance sector, and has upgraded its department store brands [1][18]. Revenue and Profitability - The company's total revenue for 2023 was 6,065 million yuan, with a net profit of 136 million yuan, translating to an EPS of 0.60 yuan [11][16]. - The gross margin for the fourth quarter of 2023 was 25.25%, reflecting a year-on-year increase of 4.11 percentage points [9][28]. - The company’s operating income for the fourth quarter was 1,415 million yuan, representing a year-on-year growth of 7.89% [8]. Financial Forecasts - The report projects revenue growth rates of 3.82% for 2024 and 3.27% for 2025, with net profit expected to reach 155 million yuan in 2024 and 171 million yuan in 2025 [11][29]. - The EPS is forecasted to increase to 0.69 yuan in 2024 and 0.76 yuan in 2025, with a further projection of 0.83 yuan in 2026 [11][29]. Market Position and Strategy - The company operates a total of 344 stores, including 12 department stores, 243 supermarkets, and 89 appliance and communication outlets, showcasing a diversified retail strategy [18]. - In 2023, the company introduced 103 new first-store brands and upgraded 307 existing brands, enhancing its market competitiveness [18][29].