Toly Bread(SH:603866) EBSCN·2024-03-25 16:00Investment Rating - The report has downgraded the investment rating to "Accumulate" [12][11]. Core Views - The company's core business growth is under pressure, with a focus on new product development and capacity expansion to improve performance in the short and long term [1]. - The company reported a revenue of 6.759 billion yuan in 2023, a year-on-year increase of 1.1%, while the net profit attributable to shareholders was 574 million yuan, down 10.3% year-on-year [9]. - The company is actively developing new markets and expanding multi-channel sales, particularly in the eastern and central regions of China [10]. Summary by Sections Business Performance - In 2023, the company's revenue from bread and pastries was 6.532 billion yuan, with a year-on-year growth of 0.6% [1]. - The company launched various new products, including mooncakes and sticky rice dumplings, to meet consumer demand [1]. Profitability - The gross profit margin for 2023 was 22.79%, a decrease of 1.20 percentage points year-on-year, primarily due to rising raw material costs and high initial expenses from new projects [2]. - The net profit margin for 2023 was 8.49%, down 1.08 percentage points year-on-year [2]. Financial Forecast - Revenue is projected to grow to 7.085 billion yuan in 2024, with a growth rate of 4.84% [3]. - The net profit is expected to recover slightly to 598 million yuan in 2024, with a growth rate of 4.19% [3]. Market Strategy - The company is focusing on expanding its presence in the eastern and central regions, with a notable increase in the number of distributors in these areas [10]. - The company is enhancing its online sales channels and integrating digital marketing platforms to boost sales [10].