Minsheng Securities·2024-03-28 16:00Investment Rating - The report maintains a "Recommended" rating for the company [3][4]. Core Views - The company's performance in 2023 met expectations, with revenue reaching 67.54 billion yuan, a year-on-year increase of 24.08%, and a net profit attributable to shareholders of 6.714 billion yuan, up 33.46% year-on-year [2][3]. - The company's profitability improved year-on-year, with a gross margin of 31.82%, an increase of 3.43 percentage points, and a net profit margin of 9.94%, up 0.7 percentage points [2][3]. - The company plans to distribute a cash dividend of 1.65 yuan per share, totaling 3.414 billion yuan, resulting in a cash dividend payout ratio of 50.85%, significantly higher than the previous year's 32.9% [3]. - The new rental agreement is expected to reduce airport rental costs, and the recovery of inbound and outbound passenger flow is anticipated to boost duty-free revenue [3]. Summary by Sections Financial Performance - In Q4 2023, the company achieved revenue of 16.703 billion yuan, a year-on-year increase of 10.85%, and a net profit of 1.507 billion yuan, up 274.72% year-on-year [2]. - The company's inventory at the end of 2023 was 21.057 billion yuan, a decrease of 1.8 billion yuan from the previous quarter and a year-on-year decline of 6.869 billion yuan, indicating inventory optimization [3]. Regional Performance - Revenue from Hainan reached 39.65 billion yuan, a year-on-year increase of 14.25%, while Shanghai's revenue was 17.821 billion yuan, up 25.99% year-on-year [3]. - The Haikou Duty-Free City generated revenue of 6.838 billion yuan in its first year of operation, contributing positively to the company's overall performance [3]. Future Projections - The company is projected to achieve net profits of 7.872 billion yuan, 9.540 billion yuan, and 11.121 billion yuan for 2024, 2025, and 2026, respectively, with corresponding PE ratios of 23x, 19x, and 16x [4].