XIANGPIAOPIAO(SH:603711) Haitong Securities·2024-04-19 00:31Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1]. Core Views - The report highlights the continuous recovery of profitability and strong growth in ready-to-drink products [1][6]. - The company achieved a revenue of 3.625 billion yuan in 2023, representing a year-over-year increase of 15.9%, and a net profit of 280 million yuan, up 31.04% year-over-year [3][24]. - The ready-to-drink segment saw significant growth, with revenue reaching 901 million yuan in 2023, a year-over-year increase of 41.46% [13]. Financial Performance Summary - In 2023, the company reported total revenue of 3.625 billion yuan, with a gross margin of 37.5%, an increase of 3.73 percentage points year-over-year [24]. - The net profit for 2023 was 280 million yuan, with a net profit margin of 7.73%, reflecting a year-over-year increase of 0.89 percentage points [24]. - For the first quarter of 2024, the company achieved revenue of 725 million yuan, a year-over-year increase of 6.76%, and a net profit of 25 million yuan, up 331.26% year-over-year [3][12]. Revenue and Profit Forecast - The company is expected to generate revenues of 4.301 billion yuan, 5.062 billion yuan, and 5.805 billion yuan for 2024, 2025, and 2026, respectively [6][7]. - Corresponding net profits are projected to be 344 million yuan, 457 million yuan, and 580 million yuan for the same years [6][7]. - The earnings per share (EPS) are forecasted to be 0.84 yuan, 1.11 yuan, and 1.41 yuan for 2024, 2025, and 2026, respectively [6][7]. Market Position and Strategy - The company has successfully expanded its ready-to-drink sales team, which now operates independently, and has increased the number of distributors to 1,531 by the end of 2023 [5]. - The ready-to-drink product, particularly the frozen lemon tea, has shown promising sales performance, with over 200 million yuan in tax-exempt sales in its first year [13][23]. - The company aims to deepen its market penetration in key urban areas and universities, focusing on replicable successful models to capture market opportunities in lemon tea [13][23].