Guangzhou Restaurant(SH:603043) Shengang Securities·2024-04-10 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative return exceeding 15% over the next six months compared to the market benchmark index [1][23]. Core Insights - The company reported a revenue of 4.901 billion yuan and a net profit attributable to shareholders of 550 million yuan for the year 2023, reflecting a year-on-year growth of 19.17% and 5.21% respectively. The fourth quarter saw a revenue of 1.025 billion yuan and a net profit of 59 million yuan, with year-on-year growth of 32.73% and 11.11% [4][22]. - The company is focusing on expanding its food business through new regions, channels, and platforms, particularly in East China, while enhancing brand presence and distribution [22]. - The company has experienced significant growth in its restaurant business, with a 138.32% increase in Q4 revenue, attributed to new store openings and industry recovery [22]. Financial Performance Summary - The company’s revenue and net profit projections for 2024-2026 are 5.658 billion yuan, 6.466 billion yuan, and 7.341 billion yuan, with net profits of 651 million yuan, 762 million yuan, and 891 million yuan respectively. The earnings per share (EPS) are projected to be 1.15 yuan, 1.34 yuan, and 1.57 yuan, with corresponding price-to-earnings (PE) ratios of 15.36X, 13.14X, and 11.24X [22][23]. - The overall gross margin for the company increased by 0.16 percentage points to 35.30%, driven by the strong performance of the restaurant segment [22]. - The company’s total market capitalization is reported at 10.01 billion yuan, with a closing price of 17.6 yuan per share [23].