Milkground(SH:600882) EBSCN·2024-03-25 16:00Investment Rating - The report maintains a "Hold" rating for the company, indicating a potential return of 5% to 15% over the next 6-12 months [13]. Core Views - The company reported a revenue of 4.05 billion yuan in 2023, a decrease of 16.2% year-on-year, with a net profit attributable to shareholders of 60 million yuan, down 53.1% year-on-year [5][20]. - In Q4 2023, the company achieved a revenue of 970 million yuan, a slight decline of 2.6% year-on-year, but turned a profit with a net profit of 30 million yuan [5][20]. - The company is focusing on expanding its consumer base and enhancing essential consumption scenarios through new product launches and channel expansion [18]. Summary by Sections Financial Performance - The company’s revenue for 2023 was 40.5 billion yuan, down 16.2% year-on-year, while the net profit attributable to shareholders was 0.6 billion yuan, a decrease of 53.1% [5][20]. - The gross margin for 2023 was 29.24%, down 4.92 percentage points year-on-year, primarily due to rising raw material prices [18][20]. - The company’s net profit margin improved in Q4 2023, reaching 3.04%, an increase of 2.61 percentage points year-on-year [19][20]. Regional Performance - Revenue by region in 2023 showed a decline of 23.79% in the North, 9.59% in the Central region, and 11.73% in the South [7]. Channel Development - As of the end of 2023, the company had 5,036 distributors covering 800,000 retail sales terminals, with a net increase of 182 distributors in Q4 compared to Q3 [7]. Shareholder Activity - The major shareholder, Mengniu, has increased its stake in the company by 1.34%, reflecting confidence in the company's future development [18]. Product Development - The company plans to introduce new products, including cheese snacks, to enhance its product matrix and is expected to contribute to revenue growth in 2024 [18][20].