aiyingshi(SH:603214) Xinda Securities·2024-04-02 16:00Investment Rating - The report assigns a "Buy" rating for the company, indicating that the stock price is expected to outperform the benchmark index by more than 15% [7]. Core Views - The company reported a revenue of 3.332 billion and a profit of 105 million in 2023, reflecting a year-on-year increase of 21.84%. The net profit attributable to the parent company was 66 million, up 22.14% year-on-year [23]. - The overall revenue faced pressure primarily due to the company's proactive optimization and streamlining of inefficient stores, which led to a decrease in sales. However, the adjustments in store size and operational efficiency resulted in a reduction in expenses, improving profit margins [23]. - The company plans to distribute a cash dividend of 3.5 yuan per 10 shares [23]. Financial Performance - In 2023, the company's gross profit margin was 28.38%, slightly down by 0.16 percentage points year-on-year [1]. - The sales, management, and financial expense ratios were 20.81%, 3.35%, and 1.01%, respectively, with year-on-year changes of -0.14, -0.06, and -0.28 percentage points. The net profit margin was 3.48%, an increase of 0.77 percentage points year-on-year [16]. - The forecast for net profit attributable to the parent company for 2024-2026 is 116 million, 133 million, and 139 million, representing year-on-year growth of 11%, 14%, and 5%, respectively. The corresponding EPS is projected to be 0.83, 0.95, and 0.99 yuan, with PE ratios of 18, 15, and 15 times based on the closing price on April 3 [8].