Investment Rating - The investment rating for the company is "Outperform the Market" [4][11]. Core Views - The company achieved profitability in 2023, with a revenue of 5.16 billion yuan, representing a year-on-year growth of 20.3% [4]. - The gross margin stood at 67.1%, with a slight increase of 0.1 percentage points year-on-year, and the adjusted net profit reached 20.91 million yuan, marking a return to profitability [4]. - The company is focusing on a light-asset operation model to accelerate growth and expand its store network, particularly in high-tier cities [4]. Summary by Sections Market Performance - The company's stock price closed at HKD 2.61, with a market capitalization of HKD 44.76 billion [2]. - The stock has experienced a 52-week price range of HKD 2.40 to HKD 9.11 [2]. - The company's performance relative to the Hang Seng Index shows a decline of 16.61% over the past month [2]. Financial Performance - In 2023, the company reported a revenue of 5.16 billion yuan, with a gross profit of 3.46 billion yuan, resulting in a gross margin of 67.1% [5][8]. - The adjusted net profit for 2023 was 20.91 million yuan, with an adjusted net profit margin of 0.4% [5][8]. - The company plans to open approximately 200 new stores in high-tier cities in 2024 [4]. Store Expansion and Operations - The company operated 1,574 direct stores by the end of 2023, with a net increase of 506 stores, representing a growth of 47.4% year-on-year [4]. - The average daily sales per store decreased by 14.7% to approximately 10,000 yuan, with a customer unit price decline of 13.7% [4]. - The registered membership reached 80.5 million by the end of 2023, with a monthly active member count of 4.7 million and a monthly repurchase rate of 23.9% [4]. Future Projections - Revenue projections for 2024 and 2025 are adjusted to 7.38 billion yuan and 9.25 billion yuan, respectively, with expected year-on-year growth rates of 42.9% and 25.4% [5][6]. - The adjusted net profit is forecasted to reach 268 million yuan in 2024 and 501 million yuan in 2025, with corresponding adjusted net profit margins of 3.6% and 5.4% [5][6]. - The company aims for a target market value of HKD 59-74 billion, with a target price range of HKD 3.5-4.3 [4].
全年实现扭亏为盈,轻资产运营加速发展