INZONE GROUP(600858) 光大证券·2024-03-27 16:00Investment Rating - The report maintains an "Overweight" rating for the company [5][8] Core Views - The company achieved a year-on-year revenue growth of 2.97% in 2023, with net profit attributable to the parent company reaching RMB 217 million, turning from a loss to a profit [1] - The company's gross profit margin increased by 1.03 percentage points in 2023, while the period expense ratio decreased by 0.65 percentage points, indicating improved profitability [6] - The company's profit performance in the second half of 2023 exceeded expectations, leading to an upward revision of EPS forecasts for 2024 and 2025 by 29% and 18%, respectively [8] Market Data - The company's total market capitalization is RMB 23.20 billion, with a total share capital of 520 million shares [1] - The stock's 52-week low/high is RMB 3.48/6.75, with a turnover rate of 128.95% over the past three months [1] Financial Performance - In 2023, the company's revenue reached RMB 5.539 billion, with a net profit of RMB 217 million, compared to a loss of RMB 11 million in the previous year [1] - The company's comprehensive gross margin in 2023 was 41.48%, up 1.03 percentage points year-on-year [6] - The company's period expense ratio in 2023 was 35.78%, down 0.65 percentage points year-on-year [4] Operational Highlights - The company opened 7 new stores and closed 4 stores in 2023, bringing the total number of stores to 120 as of March 27, 2024 [15] - The company optimized its product and brand structure, replacing nearly 30,000 SKUs in supermarkets and reducing the average procurement cost of fresh food by over 5% [15] - The company enhanced its online-offline integration by improving its e-commerce platform, collaborating with third-party instant retail platforms, and implementing digital management tools [15] Profit Forecast and Valuation - The company's revenue is expected to grow by 3.27% in 2024, reaching RMB 5.720 billion, with a net profit of RMB 78 million [3] - The EPS for 2024 is forecasted at RMB 0.15, with a P/E ratio of 30 [3] - The ROE (attributable to the parent company) is expected to be 2.91% in 2024, with a P/B ratio of 0.9 [3] Regional and Business Segment Performance - In 2023, the company's revenue from Jinan was RMB 1.55 billion, with a gross margin of 28.15%, while revenue from Hebei was RMB 94.84 million, with a gross margin of 54.03% [11] - The company's department store segment contributed RMB 2.202 billion in revenue, with a gross margin of 32.87%, while the hypermarket segment contributed RMB 1.876 billion, with a gross margin of 20.48% [11]