Guolian Securities·2024-03-26 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 97.91 CNY / 107.94 HKD for 2024, based on an 18x PE ratio for adjusted net profit [3][4]. Core Insights - The company's core local business has shown robust growth, with a revenue increase of 28.7% year-on-year in 2023, reaching 206.9 billion CNY, and an operating profit growth of 31.2% [4]. - The new business segment has significantly reduced its losses, with revenue of 69.8 billion CNY in 2023, up 18% year-on-year, and operating losses narrowing from 28.4 billion CNY in 2022 to 20.2 billion CNY in 2023 [5]. - The report forecasts revenue growth for 2024-2026 at 20.3%, 17.4%, and 13.7%, respectively, with adjusted net profit growth at 46.1%, 44.9%, and 22.2% for the same period [3][6]. Financial Summary - The company's projected revenues for 2024, 2025, and 2026 are 332.8 billion CNY, 390.7 billion CNY, and 444.0 billion CNY, respectively, with corresponding growth rates of 20.3%, 17.4%, and 13.7% [6]. - Adjusted net profit is expected to be 34.0 billion CNY in 2024, 49.2 billion CNY in 2025, and 60.1 billion CNY in 2026, with growth rates of 46.1%, 44.9%, and 22.2% [3][6]. - The report highlights a significant improvement in operating efficiency, particularly in the new business segment, which aims to further reduce losses in the coming years [5][11].