Three Squirrels(SZ:300783) East Money Securities·2024-03-27 16:00Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance in the near term [12]. Core Insights - The company has implemented a "high-end cost-performance" strategy, which has begun to show results, with a focus on short video e-commerce contributing significantly to revenue growth [22]. - In 2023, the company achieved a revenue of 7.115 billion yuan, a year-on-year decrease of 2.45%, while the net profit attributable to shareholders increased by 70.30% to 220 million yuan [5][12]. - The company aims to return to a revenue target of 10 billion yuan by 2024, with projected revenues of 10.036 billion yuan, 12.205 billion yuan, and 14.157 billion yuan for 2024, 2025, and 2026 respectively [12]. Summary by Sections Revenue and Profitability - In 2023, the company reported a revenue of 71.15 billion yuan, with a net profit of 2.20 billion yuan, and a significant increase in non-recurring net profit by 150.82% [5][12]. - The fourth quarter of 2023 saw a revenue of 25.32 billion yuan, reflecting a year-on-year growth of 29.18% [5]. Financial Projections - The company forecasts revenues of 10.036 billion yuan in 2024, with a net profit of 325.67 million yuan, and an EPS of 0.81 yuan [12]. - The projected P/E ratios for 2024, 2025, and 2026 are 28.28, 21.17, and 16.28 respectively, indicating a favorable valuation trend [12]. Market Performance - The company has successfully leveraged the Douyin platform, achieving a revenue of 1.204 billion yuan from this channel in 2023, which represents a year-on-year growth of 118.51% [22]. - The offline distribution channel generated revenue of 1.641 billion yuan in 2023, with daily sales products contributing over 30% to this figure [5].