Huangshanghuang(SZ:002695) Huaxin Securities·2024-03-30 16:00Investment Rating - The report maintains a "Buy" investment rating for the company [7][9]. Core Views - The company has shown significant year-on-year growth in performance, primarily due to cost reduction and decreased expenses [5]. - The "Thousand Cities, Ten Thousand Stores" strategy is steadily advancing, indicating a turning point in operational efficiency [6]. - Short-term same-store revenue is slightly pressured by external consumer environment factors, but the company is expected to return to a positive operational trajectory starting in 2024, with rapid store expansion and increasing concentration [7]. Financial Summary - For 2023, the company's revenue was 1.921 billion yuan, a decrease of 1.7% year-on-year, while the net profit attributable to shareholders was 71 million yuan, an increase of 129.1% year-on-year [22]. - The company’s gross margin for 2023 was 29.06%, up 0.9 percentage points year-on-year, and the net margin was 3.45%, up 2.46 percentage points year-on-year [22]. - The company’s operating cash flow for 2023 was 218 million yuan, a decrease of 43% [22]. - The number of stores reached 4,497 by the end of 2023, with a mix of 262 direct-operated and 4,235 franchised stores [23]. Earnings Forecast - The forecasted earnings per share (EPS) for 2024 and 2025 are 0.25 yuan and 0.33 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 33 and 25 times [7]. - The projected revenue for 2024 is 2.270 billion yuan, representing an 18.2% growth rate, and the net profit is expected to reach 141 million yuan, reflecting a 100.5% growth rate [12].