Three Squirrels(SZ:300783) EBSCN·2024-03-25 16:00Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company achieved a total revenue of 7.115 billion yuan in 2023, a year-on-year decrease of 2.45%, while the net profit attributable to shareholders was 220 million yuan, reflecting a year-on-year increase of 69.85% after adjustments [1]. - The online channel revenue reached 4.951 billion yuan in 2023, up 3.40% year-on-year, driven by the rapid growth of the Douyin channel [2]. - The company's gross profit margin for 2023 was 23.33%, with a net profit margin of 3.09%, indicating a recovery in profitability [3]. Summary by Sections Financial Performance - In Q4 2023, the company reported revenue of 2.532 billion yuan, a year-on-year increase of 29.18%, and a net profit of 50 million yuan, up 39.73% year-on-year [1]. - The company’s revenue from offline channels was 2.163 billion yuan in 2023, down 13.63% year-on-year, while the revenue from offline distribution channels increased by 11.33% to 1.641 billion yuan [2]. Strategic Initiatives - The company is implementing a "high-end cost-performance" strategy, which has led to a reduction in prices to consumers, impacting the gross profit margin [3]. - The company aims to optimize its operational logic in 2024 by leveraging the Douyin channel to enhance sales of key products and improve distribution in offline channels [3]. Profitability Forecast - The report maintains the net profit forecast for 2024-2025 and introduces a new forecast for 2026, projecting a net profit of 508 million yuan, with corresponding EPS of 0.75, 1.00, and 1.27 yuan for 2024-2026 [4].