县城、新场景起量，经营效益稳步改善

Investment Rating - The report maintains a "Buy" rating for the company [29] Core Views - The company has shown a profit margin recovery and is focusing on deepening its presence in county and overseas markets, which is expected to enhance operational quality [11] - The company achieved a revenue of 78.02 billion yuan in 2023, a year-on-year increase of 2%, and a net profit of 3.24 billion yuan, a significant year-on-year increase of 393.89% [11] - The growth in revenue is attributed to the expansion of new product categories and the performance in county and overseas markets, which are expected to contribute significantly to future growth [11] Financial Summary - Revenue and Profitability: - Revenue for 2022 was 76.48 billion yuan, and for 2023 it was 78.02 billion yuan, reflecting a growth rate of 2.0% [2] - Net profit increased from 0.66 billion yuan in 2022 to 3.24 billion yuan in 2023, marking a growth rate of 393.9% [4] - The gross profit margin improved to 32.26% in 2023, up by 2.06 percentage points from the previous year [11] - Earnings Per Share (EPS): - EPS rose from 0.20 yuan in 2022 to 1.01 yuan in 2023 [2][4] - Future Projections: - Expected net profits for 2024, 2025, and 2026 are projected to be 5 billion yuan, 5.8 billion yuan, and 6.9 billion yuan respectively [11] - Corresponding P/E ratios are forecasted to be 23X, 20X, and 17X for the same years [11] - Market Segmentation: - The domestic market accounted for 90.12% of total revenue in 2023, with county-level markets showing a growth rate of approximately 10% [11] - The overseas market contributed 9.88% to total revenue, with expectations for recovery and growth in 2024 [11] - Cost Management: - The company managed to reduce its expense ratio to 25.15% in 2023, down by 0.98 percentage points from the previous year [11] - The net profit margin for 2023 was 4.49%, an increase of 3.35 percentage points year-on-year [11]