Red Star Macalline(SH:601828) EBSCN·2024-03-28 16:00Investment Rating - The report maintains an "Accumulate" rating for both A-shares and H-shares of the company [5][15][16]. Core Views - The company's performance in 2023 was below expectations, primarily due to significant credit and asset impairment losses, as well as losses from changes in the fair value of investment properties [3][13]. - The company is introducing new automotive business models and continuing its digital transformation [3][15]. - The revenue for 2023 decreased by 18.55% year-on-year, with a net profit attributable to shareholders of -2.216 billion yuan, compared to a profit of 559 million yuan in the previous year [1][3][13]. Financial Summary - In 2023, the company achieved operating revenue of 11.515 billion yuan, down 18.55% year-on-year [1][4]. - The gross profit margin for 2023 was 56.74%, a decrease of 1.42 percentage points compared to the previous year [14]. - The company reported a net profit margin of -19.2% for 2023, with a diluted EPS of -0.51 yuan [4][22]. Expense Analysis - The company's expense ratio increased by 8.86 percentage points to 46.60% in 2023, with sales, management, financial, and R&D expense ratios at 12.88%, 11.31%, 22.24%, and 0.17% respectively [2][4]. - The fourth quarter of 2023 saw a further increase in the expense ratio to 45.79%, up 4.40 percentage points year-on-year [2][14]. Strategic Initiatives - In July 2023, the company formed a strategic partnership with Shanghai Kanaiqi Automotive Service Co., among others, to integrate automotive and home categories into a "one-stop home" business model [2][3]. - The company has also increased its restaurant coverage in shopping malls from 43% to 54% throughout 2023 [2][3]. Earnings Forecast - The earnings per share (EPS) forecasts for 2024 and 2025 have been revised down by 6% and 9% to 0.08 yuan and 0.09 yuan respectively, with a new forecast for 2026 at 0.10 yuan [3][4].