Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Insights - The company's 2023 performance was below expectations, leading to a downward revision of the net profit forecast for 2024-2025 to 869.35 million CNY (-1.71%) and 959.03 million CNY (-2.22%), with an expected net profit of 1,056.03 million CNY for 2026 [3]. - The earnings per share (EPS) estimates for 2024-2026 are projected at 0.37 CNY (-0.08), 0.41 CNY (-0.10), and 0.46 CNY, corresponding to price-to-earnings (PE) ratios of 13x, 12x, and 11x respectively [3]. - In 2023, the company reported revenue of 2,628.03 million CNY, a year-on-year increase of 21.0%, and a net profit of 791.24 million CNY, up 20.1% year-on-year [3]. - The company plans to distribute a final dividend of 0.0686 HKD per share and a special dividend of 0.2139 HKD per share, totaling an annual dividend of 0.3731 HKD per share [3]. Financial Summary - Revenue for 2023 was 2,628.03 million CNY, with a year-on-year growth of 21.0% [7]. - Operating profit reached 1,372 million CNY, reflecting a 33.2% increase year-on-year, with an operating profit margin of 52.2%, up 4.8 percentage points [3]. - The company experienced a decline in total revenue in the second half of 2023, amounting to 1,103 million CNY, down 12.8% year-on-year, and an operating profit of 527 million CNY, down 15.1% year-on-year [3]. Business Performance - The company's cemetery service revenue was 2,165 million CNY, a year-on-year increase of 23.8%, while funeral service revenue was 398 million CNY, up 10.7% year-on-year [3]. - The performance in certain regions, particularly in northern China and Anhui, was below expectations due to various factors, including adverse weather conditions and ongoing digital transformation projects [3]. - The company is focusing on digital transformation to enhance operational efficiency, including the establishment of a VR environment system and the launch of the "Digital Cemetery" project [3].
2023年年报点评：业绩低于预期，提高派息力度