Haitong Securities·2024-03-28 16:00Investment Rating - The investment rating for the company is "Outperform the Market" [2][7]. Core Views - The report highlights strong revenue and profit growth, with 2023 revenue reaching 42.667 billion yuan (up 28.4% year-on-year) and net profit attributable to shareholders at 12.079 billion yuan (up 42.2% year-on-year). The company also proposed a total dividend of 8.435 billion yuan [5][6]. - The company continues to benefit from its strong market position in packaged drinking water and rapid growth in the tea beverage segment, with tea beverage revenue reaching 12.659 billion yuan (up 83.3% year-on-year) [5][7]. - The report emphasizes the company's focus on technological innovation and long-term strategies, which have contributed to its impressive performance [5][6]. Summary by Sections Financial Performance - In 2023, the company achieved total revenue of 42.667 billion yuan, with a year-on-year growth of 28.4%. The net profit attributable to shareholders was 12.079 billion yuan, reflecting a year-on-year increase of 42.2% [5][6]. - The gross profit margin improved by 2.10 percentage points year-on-year, leading to a gross profit increase of 33.05% [5][6]. - The company reported a decrease in sales expense ratio by 1.77 percentage points and a reduction in management expense ratio by 0.45 percentage points [5][6]. Product Segments - Packaged drinking water revenue was 20.262 billion yuan, growing by 10.9% year-on-year, supported by effective marketing strategies [5][7]. - The tea beverage segment saw significant growth, with revenue reaching 12.659 billion yuan, marking a substantial increase and establishing a strong brand presence [5][7]. - Functional beverages generated revenue of 4.902 billion yuan (up 27.7% year-on-year), while juice beverages achieved 3.533 billion yuan (up 22.7% year-on-year) [7]. Future Projections - Revenue projections for 2024-2026 are estimated at 50.546 billion yuan, 59.504 billion yuan, and 69.692 billion yuan, respectively, with net profit forecasts of 14.379 billion yuan, 16.947 billion yuan, and 20.156 billion yuan [6][7]. - The report maintains a price-to-earnings (PE) valuation range of 30-35 times for 2024, suggesting a target share price range of 42.67-49.78 HKD [7].