Investment Rating - The report maintains an "Add" rating for the company, indicating an expected price increase of 5% to 15% over the next 6 to 12 months [2][7]. Core Views - The company reported a decline in same-store sales for its brands in Q1 2024, with Taier, Songhuo, and Jiumaoji experiencing year-on-year decreases of -13.9%, -34.8%, and -4.1% respectively. This decline is attributed to significant industry pressures and high comparative bases from the previous year [2]. - The company is actively adjusting its strategies to enhance product cost-effectiveness and has plans to accelerate store openings in Q2 2024, following a slower pace in Q1 due to the Spring Festival [2]. - A share repurchase plan of up to HKD 100 million reflects management's confidence in the company's long-term business prospects [2]. Financial Summary - The company’s revenue is projected to grow from CNY 5,986 million in 2023 to CNY 7,259 million in 2024, representing a growth rate of 21.26% [5]. - The net profit attributable to the parent company is expected to increase from CNY 453 million in 2023 to CNY 570 million in 2024, with a growth rate of 25.69% [5]. - The company’s P/E ratio is projected to decrease from 17.51 in 2023 to 10.97 in 2024, indicating improved valuation metrics over the forecast period [5].
Q1高基数下承压，回购体现信心