Peacebird(SH:603877) Guoxin Securities·2024-03-23 16:00Investment Rating - The investment rating for the company is "Buy" [6][23]. Core Insights - The company experienced a revenue decline of 9.4% in 2023, totaling 7.79 billion yuan, while net profit increased by 128.4% to 422 million yuan due to strict control of retail discounts and cost management [2][6]. - The company closed a significant number of underperforming stores, with a net closure of 255 direct stores and 688 franchise stores, leading to an average store efficiency improvement [2][32]. - The gross profit margin improved by 5.9 percentage points to 54.1% as a result of reduced retail discounts and better inventory management [2][6]. - The company has implemented organizational and product reforms, transitioning to a functional department system to enhance operational efficiency [2][32]. Financial Summary - Revenue for 2023 was 7.79 billion yuan, down 9.4% from 2022, with projections for 2024-2026 showing a recovery to 8.13 billion yuan, 8.89 billion yuan, and 9.59 billion yuan respectively [24]. - Net profit for 2023 was 422 million yuan, with forecasts of 509 million yuan, 575 million yuan, and 646 million yuan for 2024-2026, reflecting growth rates of 20.6%, 13.1%, and 12.3% respectively [24][32]. - The company plans to increase its target price to 19.3-20.4 yuan, up from the previous 18.5-19.6 yuan, corresponding to a PE ratio of 18-19x for 2024 [32].