M&G(SH:603899) Minsheng Securities·2024-03-29 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 35.98 CNY [3][4]. Core Views - The company achieved revenue of 23.35 billion CNY and a net profit attributable to shareholders of 1.53 billion CNY in 2023, reflecting year-on-year growth of 16.8% and 19.1% respectively [3][4]. - The retail segment is experiencing robust growth, with the opening of 129 new stores in 2023, leading to a total of 618 stores by year-end [3][4]. - The company is focusing on enhancing its retail service capabilities and optimizing its product structure through initiatives like the Jiuwu Miscellaneous Store [4]. Summary by Sections Financial Performance - In Q4 2023, the company reported revenue of 7.49 billion CNY, with a net profit of 433 million CNY, marking a year-on-year increase of 19.5% and 24.6% respectively [3]. - The overall gross margin for 2023 was 18.86%, with a net profit margin of 7.04%, showing a slight decrease in gross margin but an improvement in net profit margin compared to the previous year [3][4]. Business Segments - The traditional core business, Jiuwu Technology, and retail stores achieved revenues of 7.85 billion CNY, 857 million CNY, and 1.33 billion CNY respectively, with growth rates of 4.26%, 30.0%, and 51.02% [3]. - The company’s international business generated revenue of 854 million CNY in 2023, reflecting a year-on-year growth of 21.6% [3][4]. Future Outlook - The company is expected to maintain a compound annual growth rate (CAGR) of over 20% for its key segments, with projected net profits of 1.8 billion CNY, 2.14 billion CNY, and 2.56 billion CNY for 2024, 2025, and 2026 respectively [4][5]. - The report anticipates that the company will continue to optimize its operations and expand its market presence, particularly in overseas markets [4].