YanKershop(SZ:002847) Shanghai Securities·2024-04-01 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [3][22]. Core Views - The company achieved a revenue of 4.115 billion yuan in 2023, representing a year-on-year increase of 42.22%, and a net profit of 506 million yuan, up 67.76% year-on-year [3]. - The company continues to focus on seven core product categories, each exceeding 200 million yuan in revenue, with significant growth in new categories such as egg snacks and konjac jelly [4]. - The company is enhancing its supply chain by investing in upstream raw material production, aiming for a competitive edge through cost leadership [6]. Summary by Sections Financial Performance - In Q4 2023, the company reported revenue of 1.111 billion yuan, a year-on-year increase of 20.22%, and a net profit of 110 million yuan, up 32.64% year-on-year [3]. - For Q1 2024, the company expects a net profit of 150-170 million yuan, reflecting a year-on-year growth of 34.48-52.41% [3]. Product and Channel Strategy - The company has a clear "multi-category, all-channel" strategy, with a focus on major products and collaboration with retail brands to enhance market penetration [4]. - Revenue from direct sales, distribution, and e-commerce channels in 2023 was 334 million yuan, 2.952 billion yuan, and 828 million yuan, respectively, with e-commerce showing a growth of 98.04% year-on-year [4]. Profitability and Cost Management - The net profit margin for 2023 was 12.47%, an increase of 2.04 percentage points year-on-year, with a decrease in sales, management, and R&D expense ratios [5]. - The company implemented an equity incentive plan in June 2023 to align interests with core talent, which is expected to boost long-term confidence despite short-term impacts on profitability [5]. Future Projections - Revenue projections for 2024-2026 are 5.376 billion yuan, 6.596 billion yuan, and 7.878 billion yuan, with growth rates of 30.6%, 22.7%, and 19.4%, respectively [6]. - Expected net profits for the same period are 690 million yuan, 875 million yuan, and 1.055 billion yuan, with growth rates of 36.4%, 26.9%, and 20.5% [6].