ZHONGYIN BABI FOOD CO.(SH:605338) Shanxi Securities·2024-03-31 16:00Investment Rating - The report maintains an "Accumulate-A" rating for the company [2][4] Core Views - The company achieved a revenue of 1.63 billion yuan in 2023, a year-on-year increase of 6.89%, while the net profit attributable to shareholders decreased by 4.04% to 214 million yuan [2] - The company opened 1,319 new stores in 2023, exceeding its target of 1,000 stores, bringing the total number of franchise stores to 5,043 by the end of 2023 [2] - The company is actively pursuing mergers and acquisitions, with a strategic partnership established with a local brand, expected to enhance store numbers further [2] - The company is focusing on improving single-store revenue through high-priced product offerings and increasing delivery service penetration [2] - The company anticipates a recovery in group meal services in 2024, with a projected revenue of 1.88 billion yuan, reflecting a growth of 15.7% [4] Financial Performance Summary - In 2023, the company reported a basic earnings per share (EPS) of 0.86 yuan, down 4.44% year-on-year [2] - The company expects to achieve revenues of 1.88 billion yuan, 2.12 billion yuan, and 2.36 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 240 million yuan, 269 million yuan, and 306 million yuan [4] - The projected EPS for 2024, 2025, and 2026 is 0.96 yuan, 1.08 yuan, and 1.23 yuan respectively, with price-to-earnings (P/E) ratios of 17.8X, 15.9X, and 14.0X [4] - The company’s gross margin is expected to stabilize around 26.6% to 27.6% over the next few years [4]