Peacebird(SH:603877) EBSCN·2024-03-21 16:00Investment Rating - The report maintains a "Buy" rating for the company [10][16]. Core Views - In 2023, the company achieved operating revenue of 7.792 billion yuan, a year-on-year decline of 9.41%, while the net profit attributable to the parent company was 422 million yuan, a year-on-year increase of 127.06% [10][16]. - The improvement in profit margins and a decrease in expense ratios contributed to the profit growth despite the revenue decline, with gross margin reaching 54.13%, the highest since the company went public in 2017 [10][16]. - The company is expected to see gradual recovery in retail performance in 2024, driven by brand upgrades and optimized channel structures [19]. Financial Performance Summary - In 2023, the company reported a significant increase in operating cash flow to 1.276 billion yuan, up 220.01% year-on-year, primarily due to reduced inventory purchases and daily expenses [3][10]. - The accounts receivable at the end of 2023 decreased by 8.22% to 486 million yuan, with a turnover period of 23 days, down by 1 day year-on-year [8][10]. - The company’s inventory at the end of 2023 decreased by 29.00% to 1.509 billion yuan, with inventory turnover days reduced to 183 days, reflecting improved inventory management [17]. Earnings Forecast - The forecast for net profit attributable to the parent company for 2024 is set at 536 million yuan, with an EPS of 1.13 yuan, and a P/E ratio of 15 times [10][20]. - The company anticipates a net profit of 669 million yuan in 2025 and 755 million yuan in 2026, with corresponding EPS of 1.41 yuan and 1.59 yuan [10][20]. Brand and Product Strategy - The company is focusing on brand image upgrades and plans to launch its first new-generation flagship store in 2024, emphasizing core product categories and popular items [19]. - The company aims to optimize its channel structure, focusing on core cities for direct sales and expanding franchise operations [19].