Semir(SZ:002563) EBSCN·2024-04-02 16:00Investment Rating - The report maintains a "Buy" rating for the company [1][21] Core Views - The company has shown significant profit recovery in 2023, with a notable increase in net profit by 76.06% year-on-year, driven by improved gross margins and cost control [4][20] - The company is expected to continue benefiting from positive retail trends in 2024, with an upward adjustment in net profit forecasts for 2024 and 2025 [21] Financial Performance - In 2023, the company achieved a revenue of 136.61 billion yuan, a year-on-year increase of 2.47%, and a net profit attributable to shareholders of 11.22 billion yuan, a year-on-year increase of 76.06% [4][20] - The company's gross margin improved to 44.02%, up 2.72 percentage points year-on-year, attributed to product management reforms and enhanced product offerings [17][20] - The company reported a decrease in inventory by 28.61% year-on-year, with inventory turnover days reduced to 155 days [18][20] Quarterly Performance - Quarterly revenue growth in 2023 showed fluctuations, with Q1 experiencing a decline of 9.29%, followed by positive growth in subsequent quarters [5] - The company’s net profit for Q1 was up 48.85% year-on-year, while Q4 saw a decline of 20.81% [5] Operational Developments - The company established a live-streaming division in 2023, enhancing its digital transformation and operational efficiency [7][20] - As of the end of 2023, the company had opened 70 stores in international markets, including Singapore, indicating a proactive approach to market expansion [7][20] Future Outlook - The company anticipates stable growth in retail performance in early 2024, with increased enthusiasm from franchisees [21] - The report projects earnings per share (EPS) for 2024, 2025, and 2026 to be 0.49 yuan, 0.56 yuan, and 0.64 yuan respectively, with corresponding price-to-earnings (P/E) ratios of 12 and 10 for 2024 and 2025 [21]