Guangzhou Restaurant(SH:603043) Guotai Junan Securities·2024-04-01 16:00Investment Rating - The investment rating for Guangzhou Restaurant (603043) is "Accumulate" with a target price of 22.60 CNY, down from the previous target price of 27.89 CNY [1][8]. Core Views - The report highlights a recovery in the frozen food business and improvements in management mechanisms. Despite short-term challenges due to increased store openings, overall performance aligns with expectations. The company achieved a revenue of 4.9 billion CNY in 2023, representing a 19% year-on-year growth, with a gross profit margin of 35.62% and a net profit of 550 million CNY, up 5% year-on-year [1][8]. Summary by Sections Financial Performance - In 2023, the company reported a revenue of 4.9 billion CNY, a 19% increase from the previous year. The gross profit was 1.75 billion CNY, with a gross margin of 35.62%. The net profit attributable to shareholders was 550 million CNY, reflecting a 5% increase year-on-year [1][8]. - The earnings per share (EPS) for 2023 was 0.97 CNY, with projections for 2024 at 1.13 CNY and 1.32 CNY for 2025 [1][8]. Revenue Breakdown - The revenue from various business segments showed significant growth, with frozen food and direct sales contributing to the overall increase. The company’s revenue from other regions and overseas markets also saw positive growth, indicating successful expansion efforts [1][8]. Cost and Profitability - The report indicates that the cost structure remains stable, with sales and management expenses increasing moderately. The net profit margin for 2023 was 11.2%, with expectations for gradual improvement in the coming years [1][8]. Valuation Metrics - The report provides valuation metrics, including a projected PE ratio of 20x for 2024 and a target price adjustment reflecting a 19% decrease from previous estimates. The company is positioned as a unique player in the market, justifying its premium valuation [1][8].