Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook for its stock performance in the next 12 months [2]. Core Insights - The company achieved a revenue of 2.323 billion RMB in 2023, representing a year-over-year growth of 43%, and a net profit of 253 million RMB, up 39.6% year-over-year. Adjusted net profit reached 305 million RMB, reflecting a 53.6% increase [2][3]. - The offline business segment generated 2.037 billion RMB in revenue, growing by 49.2% year-over-year, driven by increased demand for traditional Chinese medicine (TCM) services and the expansion of the company's medical staff [2]. - The company expanded its store network, adding 9 new outpatient chain locations, bringing the total to 56 across major cities in China [2]. - The company is initiating international expansion by acquiring 100% of Baozhong Tang in Singapore, marking its first step towards globalizing TCM services [2]. - Customer engagement metrics show a healthy growth, with new customers reaching 804,000 (up 45.6% year-over-year) and a customer return rate of 65.2% [2]. Financial Forecasts - Revenue projections for 2024, 2025, and 2026 are estimated at 3.020 billion RMB, 3.911 billion RMB, and 5.046 billion RMB, respectively, with growth rates of 30%, 29.5%, and 29% [2][3]. - Net profit forecasts for the same years are 356 million RMB, 483 million RMB, and 646 million RMB, with corresponding growth rates of 41.3%, 35.6%, and 33.7% [2][3]. - The report anticipates an adjusted net profit of 412 million RMB, 551 million RMB, and 717 million RMB for 2024, 2025, and 2026, with growth rates of 35.08%, 33.79%, and 30% [2][3]. Financial Ratios - The company’s P/E ratios are projected to be 39, 28, 20, and 15 for the years 2023, 2024, 2025, and 2026, respectively [3]. - The net profit margin is expected to improve from 10.86% in 2023 to 12.81% by 2026 [3]. - The return on equity (ROE) is forecasted to increase from 10.94% in 2023 to 17.05% in 2026, indicating enhanced profitability [3].
2023年年报业绩点评：年度业绩贴前期预告上限，需求旺盛促持续高增长