Joyoung(SZ:002242) Guotai Junan Securities·2024-03-30 16:00Investment Rating - The report assigns a "Buy" rating to the company with a target price of 14.30 RMB, down from a previous forecast of 17.40 RMB [5][9]. Core Views - The company is expected to continue its growth trajectory through cost reduction strategies and the introduction of new products, despite facing intense competition in the industry [9]. - The company's external sales have shown significant growth, while internal sales have declined, indicating a shift in market dynamics [11][12]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 96.13 billion RMB, a decrease of 5.54% year-on-year, with a net profit of 3.89 billion RMB, down 26.53% [11]. - The company's external sales reached 22.39 billion RMB, reflecting a 69% increase year-on-year, while internal sales were 73.74 billion RMB, down 17% [12][36]. Profitability Trends - The gross margin for 2023 was 25.86%, a decrease of 3.22 percentage points year-on-year, while the net margin was 4.06%, an increase of 1.07 percentage points [37]. - The report forecasts EPS for 2024-2026 to be 0.62, 0.74, and 0.85 RMB respectively, with a year-on-year growth of 22%, 19%, and 15% [9]. Cash Flow and Financial Health - The company reported a net cash flow from operating activities of 7.63 billion RMB in 2023, an increase of 1.53 billion RMB year-on-year [17]. - As of the end of 2023, the company had cash and cash equivalents totaling 24.36 billion RMB, an increase of 8.67 billion RMB year-on-year [39]. Market Position and Strategy - The company is actively responding to the slow recovery in overall industry demand by leveraging platform-based cost reduction and continuously launching new products [9]. - The report highlights the importance of maintaining a healthy cash flow and managing costs effectively in a competitive market environment [15][39].