Hongqi Chain(SZ:002697) KAIYUAN SECURITIES·2024-04-01 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [5][12]. Core Views - The company reported a revenue of 10.133 billion yuan in 2023, a year-on-year increase of 1.1%, and a net profit attributable to shareholders of 561 million yuan, up 15.5% year-on-year. A cash dividend of 1.24 yuan per 10 shares is proposed [1][5]. - The company is expected to benefit from the resources and synergies brought by the new controlling shareholder, Sichuan Provincial State-owned Assets Supervision and Administration Commission, which is anticipated to stimulate growth [2][21]. - The company has a solid operational performance in its convenience store business, with an increase in investment income from Xinwang Bank contributing to profit growth [5][20]. Financial Summary - Revenue and Profit Forecasts: The company forecasts net profits for 2024, 2025, and 2026 to be 578 million yuan (+0.31 million), 600 million yuan (+0.17 million), and 629 million yuan, respectively, with corresponding EPS of 0.42 yuan (+0.02), 0.44 yuan (+0.01), and 0.46 yuan [1][3]. - Key Financial Metrics: - Revenue in 2023 was 10.133 billion yuan, with a gross margin of 29.6% and a net margin of 5.5% [3][5]. - The company achieved an investment income of 154 million yuan in 2023, a year-on-year increase of 46.9% [5][20]. - Store Expansion: In 2023, the company opened 144 new stores and renovated 279 existing stores, bringing the total number of stores to 3,639 [21]. Business Performance - The company’s revenue growth in various segments for 2023 was as follows: food (-5.5%), tobacco and alcohol (+9.6%), daily necessities (-1.7%), and other services (+16.3%) [5][20]. - The company’s comprehensive gross margin improved by 0.6 percentage points year-on-year, indicating enhanced profitability [5][20]. Market Position - The company is focused on building competitive advantages in the convenience store sector through a differentiated strategy of "goods + services," intensive store layout, and leveraging talent and brand strengths [21].