supor(SZ:002032) Guotai Junan Securities·2024-03-31 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price raised to 69.90 CNY, up from the previous target of 63.50 CNY [1][9]. Core Views - The company's domestic sales revenue is steadily growing, while foreign sales orders are still in the recovery phase. The earnings per share (EPS) forecasts for 2024-2026 are projected at 3.02, 3.36, and 3.73 CNY, representing year-on-year growth of +12%, +11%, and +11% respectively [1][9]. Summary by Sections 1. Investment Recommendations - The company is expected to maintain stable growth in domestic sales, with foreign sales orders recovering. The report projects EPS for 2024-2026 and raises the target price to 69.90 CNY while maintaining a "Buy" rating [1][9]. 2. Financial Performance - In 2023, the company achieved a revenue of 213.04 billion CNY, a year-on-year increase of +5.62%, and a net profit of 21.8 billion CNY, up +5.42%. The fourth quarter saw revenues of 59.37 billion CNY, a +14.4% increase year-on-year [1][11]. 3. Sales Growth - Domestic sales reached 151.08 billion CNY in 2023, a +1% increase, while foreign sales grew by +19% to 61.96 billion CNY. The company benefits from brand advantages and e-commerce traffic, with expectations for continued growth in both domestic and foreign markets [1][12]. 4. Profitability Metrics - The company's gross margin improved to 26.3% in 2023, up +0.52 percentage points year-on-year, while the net profit margin was 10.23%. The fourth quarter saw a gross margin of 28.63%, reflecting a +2.56 percentage point increase [1][14]. 5. Cash Flow and Financial Health - The company reported a net cash flow from operating activities of 20.35 billion CNY in 2023, despite a decrease of 11.25 billion CNY year-on-year. The cash and cash equivalents at the end of 2023 were 38.99 billion CNY [1][15][17]. 6. Dividend Policy - The company maintains a high dividend payout, distributing 27.30 CNY per 10 shares, totaling 21.76 billion CNY, with a payout ratio of 99.8% and a dividend yield of 4.6% [1][18].