CBEST(SH:600729) Xinda Securities·2024-04-19 11:30Investment Rating - The investment rating for the company is "Buy" [1]. Core Views - The company reported a revenue of 18.985 billion yuan in 2023, an increase of 3.72% year-on-year, and a net profit attributable to shareholders of 1.315 billion yuan, up 48.84% year-on-year [1]. - The high dividend payout was as expected, with a proposed cash dividend of 1.3561 yuan per share, totaling 600 million yuan, representing a cash dividend ratio of 45.63% [1]. - The strong performance in 2023 was driven by robust growth in the retail core business, which saw a net profit of 630 million yuan, a 92% increase year-on-year, excluding contributions from the financial services and dental investments [1]. - The company’s investment in consumer finance yielded significant returns, with net profit from this segment reaching 1.982 billion yuan, an 11% increase [1][2]. Summary by Sections Financial Performance - The company achieved a net profit of 1.315 billion yuan in 2023, with a year-on-year growth of 48.84% [1]. - The operating cash flow net amount was 1.433 billion yuan, reflecting a 131.35% increase [1]. - The company’s four main retail sectors (department stores, supermarkets, electronics, and automotive trade) generated revenues of 2.01 billion, 6.18 billion, 2.93 billion, and 6.08 billion yuan respectively, with varying growth rates [1]. Dividend Policy - The proposed cash dividend for 2023 is 1.3561 yuan per share, with a total dividend payout of 600 million yuan, resulting in a dividend rate of 30.85% [1]. Future Earnings Forecast - The forecast for net profit attributable to shareholders for 2024-2026 is 1.45 billion, 1.58 billion, and 1.67 billion yuan, representing growth rates of 11%, 9%, and 6% respectively [2]. - The projected price-to-earnings (P/E) ratios for 2024-2026 are 8, 7, and 7 times based on the closing price on April 18 [2]. Operational Efficiency - The company has effectively controlled costs, with sales, management, and R&D expense ratios decreasing year-on-year [1]. - The comprehensive gross profit margin for 2023 was 19.89%, an increase of 0.28 percentage points year-on-year [1]. Market Position - The company has expanded its operational network to 281 outlets, including 50 department stores, 152 supermarkets, 41 electronics stores, and 38 automotive trade locations [1].