LFX(600612)2024-04-04 16:00Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2]. Core Views - The company is a leading brand in the jewelry sector with a strong historical presence since 1848, benefiting from effective brand management and a focus on innovation [5][12]. - The company has demonstrated stable growth in revenue and net profit, with a projected revenue of 714 billion yuan in 2023, reflecting a year-on-year increase of 13.37% [12][6]. - The company has a robust channel management strategy, leveraging its strong brand to attract quality distributors and expand its market presence [12][13]. Summary by Sections 1. Brand Power and Channel Management - The company has a long-standing brand history and leads in national aesthetic trends, continuously enhancing its brand image through significant advertising investments and transitioning to specialty stores [12][13]. - The company has established a comprehensive supply chain and product category reserve, with production bases in Dongguan and Hainan, enhancing its innovation and product upgrade capabilities [12][31]. 2. Mechanism and Incentives - The company has undergone multiple rounds of equity reform to create effective incentives and a market-oriented assessment system, resulting in a higher per capita revenue compared to peers [12][13]. - The company has implemented a professional manager system across its subsidiaries, aiming for full coverage by the end of 2023 [12][13]. 3. Financial Projections and Valuation - The company forecasts revenues of 714 billion, 839 billion, and 980 billion yuan for 2023, 2024, and 2025 respectively, with net profits of 22.14 billion, 25.72 billion, and 28.89 billion yuan [6][12]. - The company is valued at 16-20 times PE for 2024, corresponding to a market capitalization range of 411-514 billion yuan, with a reasonable value range of 78.65-98.32 yuan per share [12][6].