LFX(600612) Capital Securities·2024-03-23 16:00Investment Rating - The report assigns a "Buy" rating for the company [1] Core Insights - The company reported a revenue of 71.436 billion yuan in 2023, representing a year-on-year growth of 13.37%, and a net profit attributable to shareholders of 2.214 billion yuan, up 30.23% year-on-year [3] - The growth in net profit is attributed to several factors: 1. The consumer market is recovering, with gold consumption in China reaching 1,089.69 tons in 2023, an increase of 8.78% compared to 2022 [3] 2. The company expanded its market presence, adding 385 new retail outlets in 2023, bringing the total to 5,994 [3] 3. Continuous innovation in product design and development has boosted sales in gold jewelry [3] - In Q4 2023, the company reported a revenue of 9.37 billion yuan, a decline of 1.1% year-on-year, and a net profit of 250 million yuan, down 27.4% year-on-year, primarily due to a subsidiary's bankruptcy affecting receivables [3] - The company is expected to benefit from rising gold prices, with projected net profits of 2.21 billion yuan, 2.60 billion yuan, and 2.90 billion yuan for 2023, 2024, and 2025 respectively, corresponding to PE ratios of 18.4, 15.5, and 14.0 [3] Financial Summary - The company achieved a revenue of 71.436 billion yuan in 2023, with a projected revenue of 77.6 billion yuan in 2024 and 84.04 billion yuan in 2025 [4] - The net profit attributable to shareholders is forecasted to grow from 2.21 billion yuan in 2023 to 2.90 billion yuan in 2025, with corresponding growth rates of 29.8% and 11.5% [4] - The current PE ratio is 39.14, with projections indicating a decrease to 18.4 in 2023 and further down to 14.0 by 2025 [2][4]