Minsheng Securities·2024-04-08 16:00Investment Rating - The report maintains a "Recommended" rating for the company [2][3]. Core Views - The company reported Q1 2024 earnings that exceeded market expectations, with total revenue of 18.807 billion yuan, a year-over-year decline of 9.45%, and a net profit attributable to shareholders of 2.308 billion yuan, a slight increase of 0.33% year-over-year [2]. - The gross margin improved to 32.70%, up 3.95 percentage points year-over-year, indicating enhanced profitability, likely due to optimized procurement costs and a recovery in duty-free business [2]. - The company plans to distribute a cash dividend of 1.65 yuan per share, totaling 3.414 billion yuan, resulting in a cash dividend rate of 50.85%, significantly higher than the previous year's 32.9% [2]. - The company is actively optimizing its business layout and expanding channel resources, including partnerships with major airports and successful bids for duty-free store operations [2]. - Future earnings are expected to benefit from new rental agreements that may lower airport rental costs and a recovery in inbound and outbound passenger flow, contributing to revenue elasticity [2]. Financial Summary - For 2024, the company is projected to achieve total revenue of 67.54 billion yuan, with a growth rate of 24.1% [3]. - The net profit attributable to shareholders is expected to reach 6.714 billion yuan, reflecting a growth rate of 33.5% [3]. - The earnings per share (EPS) is forecasted to be 3.25 yuan, with a price-to-earnings (PE) ratio of 25 [3].