M&G(SH:603899)2024-03-29 16:00Investment Rating - The report maintains a "Buy" rating for the company [1]. Core Views - The company achieved a revenue of 23.351 billion yuan in 2023, representing a year-on-year growth of 16.78%. The net profit attributable to shareholders was 1.527 billion yuan, up 19.05% year-on-year [1]. - The fourth quarter of 2023 saw a revenue of 7.492 billion yuan, with a year-on-year increase of 19.54%, and a net profit of 433 million yuan, growing 24.62% year-on-year [1]. - The comprehensive gross margin for 2023 was 18.86%, a decrease of 0.5 percentage points year-on-year, while the net profit margin improved to 7.04%, an increase of 0.26 percentage points year-on-year [1]. - The traditional core business grew steadily, with a revenue of 8.709 billion yuan in 2023, a year-on-year increase of 6.43% [1]. - The retail large store business showed significant growth, achieving a revenue of 1.335 billion yuan in 2023, up 51.03% year-on-year, and turning profitable [1]. - The office direct sales business also grew steadily, with a revenue of 13.307 billion yuan in 2023, a year-on-year increase of 21.75% [1]. Summary by Sections Financial Performance - Total revenue for 2023 was 23.351 billion yuan, with a year-on-year growth of 16.78% [2]. - Net profit attributable to shareholders was 1.527 billion yuan, reflecting a year-on-year increase of 19.05% [2]. - The company expects earnings per share (EPS) to be 1.98, 2.35, and 2.77 yuan for 2024, 2025, and 2026 respectively, with corresponding price-to-earnings (PE) ratios of 18X, 15X, and 13X [2]. Business Segments - The traditional core business generated a revenue of 8.709 billion yuan in 2023, growing 6.43% year-on-year [1]. - The retail large store segment achieved a revenue of 1.335 billion yuan, with a significant year-on-year growth of 51.03% [1]. - The office direct sales segment reported a revenue of 13.307 billion yuan, marking a year-on-year increase of 21.75% [1]. Future Outlook - The company is expected to continue optimizing its traditional core business layout and enhance product structure and channel efficiency [1]. - The projected revenues for 2024, 2025, and 2026 are 28.129 billion yuan, 33.629 billion yuan, and 39.791 billion yuan respectively, with growth rates of 20.46%, 19.55%, and 18.32% [2].