M&G(SH:603899) INDUSTRIAL SECURITIES·2024-03-30 16:00Investment Rating - The report maintains an "Overweight" rating for the company [6][10]. Core Views - The company reported 2023 results in line with expectations, with revenue, net profit attributable to shareholders, and net profit after deducting non-recurring gains and losses reaching 23.351 billion, 1.527 billion, and 1.398 billion yuan respectively, representing year-on-year growth of 16.78%, 19.05%, and 21.00% [6][7]. - The company plans to distribute a cash dividend of 8 yuan per 10 shares, with a dividend payout ratio of 48.40% and a dividend yield of 2.22% based on the closing price on March 29, 2024 [6][7]. - The traditional core business showed a recovery in profit margins, with a net profit margin increase of 1.1 percentage points to 12.7% in 2023 [4][6]. Summary by Sections Revenue Performance - In 2023, the traditional core business (excluding sales to KeliPu and retail stores) achieved a revenue growth of 6.4%, while KeliPu and retail stores grew by 21.8% and 51.0% respectively [6][4]. - In Q4 2023, the traditional core business, KeliPu, and retail stores saw revenue growth of 3.8%, 24.8%, and 81.1% respectively [6][4]. Profitability - The company's gross margin and net margin for 2023 were 18.86% and 6.54%, showing a year-on-year change of -0.50 and +0.12 percentage points [6][4]. - In Q4 2023, the gross margin and net margin were 15.63% and 5.78%, with year-on-year increases of 0.91 and 0.24 percentage points [6][4]. Cash Flow - The company achieved a significant improvement in operating cash flow, with a net operating cash flow of 2.617 billion yuan in 2023, up 93.57% year-on-year [6][4]. Future Projections - The company expects revenue for 2024 and 2025 to be 27.54 billion and 31.40 billion yuan, representing year-on-year growth of 17.9% and 14.0% respectively [6][7]. - The projected net profit attributable to shareholders for 2024 and 2025 is 1.84 billion and 2.11 billion yuan, with growth rates of 20.5% and 14.6% respectively [6][7].