23年改革成效逐步显现，盈利能力显著提升

Investment Rating - The investment rating for the company is "Buy" with a current price of 16.82 CNY and a fair value of 18.66 CNY [2][13]. Core Views - The report highlights that the company's operating conditions are improving, and the major shareholder's full participation in the capital increase demonstrates confidence in the company's future [3][13]. - The company is expected to see significant rebounds in revenue and net profit in 2024, driven by organizational reforms and a focus on enhancing brand image and core product lines [8][13]. Financial Performance - In 2023, the company reported revenue of 7.792 billion CNY, a year-on-year decrease of 9.41%, while net profit attributable to shareholders was 422 million CNY, a year-on-year increase of 127.06% [5][13]. - The fourth quarter of 2023 saw a year-on-year increase in revenue and net profit of 8.01% and 538.15%, respectively [13]. - The company plans to distribute a cash dividend of 6 CNY for every 10 shares [13]. Store and Channel Strategy - The total number of stores decreased by 940 to 3,731 in 2023, as the company shifted its strategy to focus on store quality and profitability rather than sheer growth [6][13]. - The company aims to enhance the brand image and improve store efficiency, with a significant reduction in underperforming stores [6][13]. Future Projections - Revenue from the franchise business is projected to grow from 2.621 billion CNY in 2024 to 3.184 billion CNY by 2026, with expected growth rates of 11.1%, 10.5%, and 10.0% respectively [10][23]. - The company anticipates a net profit of 5.89 billion CNY in 2024, with a compound annual growth rate of 39.7% from 2023 to 2024 [23][13]. Profitability Metrics - The gross profit margin for 2023 was 54.13%, an increase of 5.91 percentage points year-on-year, while the operating cash flow increased by 220.01% to 1.276 billion CNY [13][21]. - The report forecasts earnings per share (EPS) of 1.24 CNY, 1.43 CNY, and 1.73 CNY for 2024, 2025, and 2026, respectively [23][13].