Guangzhou Restaurant(SH:603043) Huachuang Securities·2024-04-01 16:00Investment Rating - The report maintains a "Recommend" rating for the company with a target price of 21.57 yuan, compared to the current price of 17.46 yuan [1]. Core Insights - The company achieved an operating revenue of 4.9 billion yuan in 2023, representing a year-on-year growth of 19.17%, and a net profit attributable to shareholders of 550 million yuan, up 5.21% year-on-year [1][9]. - The restaurant business showed significant recovery, with a revenue increase of 65.55% year-on-year, driven by the recovery of offline customer traffic post-pandemic [9]. - The company has expanded its restaurant network, adding 14 new locations, including 4 under the "Guangzhou Restaurant" brand and 10 under "Tao Tao Ju" [9]. - The company’s mooncake and frozen food segments also saw stable growth, with revenues of 1.669 billion yuan and 1.061 billion yuan respectively, reflecting increases of 9.88% and 0.33% year-on-year [9]. Financial Summary - Total revenue projections for the next few years are as follows: 5.578 billion yuan in 2024E, 6.329 billion yuan in 2025E, and 7.167 billion yuan in 2026E, with corresponding growth rates of 13.8%, 13.5%, and 13.2% [2]. - The net profit attributable to shareholders is expected to reach 613 million yuan in 2024E, 688 million yuan in 2025E, and 780 million yuan in 2026E, with growth rates of 11.4%, 12.1%, and 13.4% respectively [2]. - The company’s earnings per share (EPS) are projected to be 1.08 yuan in 2024E, 1.21 yuan in 2025E, and 1.37 yuan in 2026E, with price-to-earnings (P/E) ratios of 17, 15, and 13 respectively [2][9].