Three Squirrels(SZ:300783)2024-03-28 16:00Investment Rating - The report maintains an "Outperform" rating for the company, indicating a relative strength compared to the market performance [8][20]. Core Views - The company achieved a revenue of 7.11 billion yuan in 2023, a decrease of 2.4% year-on-year, while the net profit attributable to shareholders increased by 69.9% to 220 million yuan. The fourth quarter of 2023 saw a revenue of 2.53 billion yuan, up 29.2% year-on-year, and a net profit of 50 million yuan, up 41.1% year-on-year, aligning with previous forecasts and market expectations [7][8]. - The company has set a revenue target of 10 billion yuan for 2024, focusing on a "high-end cost-performance" strategy and enhancing its product offerings and distribution channels [9][13]. Financial Summary - The company reported a gross margin of 23.3% in 2023, down 3.4 percentage points year-on-year. The net profit margin improved to 3.1%, up 1.3 percentage points year-on-year [10][14]. - Revenue projections for 2024 to 2026 are 10.2 billion yuan, 12.25 billion yuan, and 13.95 billion yuan, respectively, with corresponding net profits of 323 million yuan, 422 million yuan, and 547 million yuan [14][23]. - The earnings per share (EPS) are projected to be 0.80 yuan, 1.05 yuan, and 1.36 yuan for 2024, 2025, and 2026, respectively [14][23]. Market Performance - The company's stock closed at 22.85 yuan on March 28, 2024, with a price-to-earnings (PE) ratio of 42 for 2023 and projected PE ratios of 29, 22, and 17 for 2024, 2025, and 2026, respectively [19][23]. - The company has a market capitalization of 6.389 billion yuan, with a price-to-book (PB) ratio of 3.6 [19].