ZHONGYIN BABI FOOD CO.(SH:605338) Huachuang Securities·2024-03-28 16:00Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 20.2 CNY based on a current price of 16.79 CNY [8]. Core Views - The company achieved a total revenue of 1.63 billion CNY in 2023, representing a year-on-year increase of 6.9%. However, the net profit attributable to shareholders decreased by 4.0% to 214 million CNY [8]. - The company plans to accelerate store openings, targeting an additional 1,000 stores in 2024, while also focusing on new retail initiatives and enhancing its catering business [8]. - The overall gross margin for 2023 was 26.4%, a decline of 1.4 percentage points year-on-year, primarily due to increased depreciation from new factory investments and a decrease in catering gross margins [8]. Financial Summary - Total revenue (million CNY) for 2023 was 1,630, with a projected growth of 13.7% in 2024 [9]. - Net profit (million CNY) for 2023 was 213, with an expected increase of 18.5% in 2024 [9]. - Earnings per share (CNY) for 2023 was 0.85, with projections of 1.01 for 2024 and 1.19 for 2025 [9]. - The company’s price-to-earnings (P/E) ratio is projected to be 20 for 2024, decreasing to 12 by 2026 [8][9].