aiyingshi(SH:603214) EBSCN·2024-04-02 16:00Investment Rating - The report maintains an "Accumulate" rating for the company [4][6]. Core Views - The company's performance exceeded previous expectations, primarily due to the acquisition of Beibei Xiong, which led to the closure of inefficient stores and improved operational efficiency [4]. - The integration of the two brands is expected to further enhance profitability, with revised EPS forecasts for 2024 and 2025 increased by 16% and 17% to 0.83 and 0.91 yuan, respectively, and a new forecast for 2026 at 0.99 yuan [4]. Financial Performance Summary - In 2023, the company reported a revenue of 3.332 billion yuan, a year-on-year decrease of 7.95%, while the net profit attributable to the parent company was 105 million yuan, reflecting a growth of 21.84% [1][5]. - The comprehensive gross margin for 2023 was 28.38%, down by 0.16 percentage points year-on-year, while the expense ratio decreased by 0.47 percentage points to 25.18% [2]. - The company achieved a net profit of 58 million yuan in Q4 2023, with a year-on-year growth of 40.85% [1][11]. Operational Efficiency - The company has improved operational efficiency by closing underperforming stores and optimizing rental costs, resulting in a nearly 10% reduction in rental expenses year-on-year [3]. - The company has a high level of paid member engagement, with paid members accounting for 48% of total member spending, and their average spending is ten times that of regular members [3]. Market Position - The dual-brand strategy has established a competitive position in East and Central China, with strong member retention and engagement metrics [4].