Jiajiayue(SH:603708) EBSCN·2024-04-21 06:32Investment Rating - The report maintains a "Hold" rating for the company, indicating a cautious outlook on its future performance [14]. Core Views - The company has shown a mixed performance in recent quarters, with a notable increase in net profit but a decline in revenue for 2023. The introduction of new business formats, such as snack and discount stores, has led to increased investment, impacting profitability forecasts [14][27]. - The company is expanding its store network, with 110 new stores opened in 2023, contributing to a total of 1,049 stores by year-end. This includes various formats such as supermarkets and discount stores [12][14]. - Online sales have seen significant growth, with a 23.9% increase in 2023, enhancing foot traffic to physical stores [12][14]. Financial Summary - In 2023, the company reported total revenue of 177.63 billion yuan, a decrease of 2.31% year-on-year, while net profit reached 1.36 billion yuan, an increase of 127.04% [27]. - The gross profit margin for 2023 was 23.88%, up by 0.62 percentage points from the previous year, although it slightly decreased to 24.04% in Q1 2024 [10][11]. - The company’s EPS for Q1 2024 was 0.23 yuan, reflecting a year-on-year growth of 7.10% [11][13]. Operational Insights - The company’s operational efficiency is improving, with a decrease in the expense ratio to 20.08% in Q1 2024, down by 0.44 percentage points year-on-year [28]. - The company has a strong competitive position in regions like Shandong, which supports its market share growth through new business formats [14]. Market Position - The company’s market capitalization is approximately 63.96 billion yuan, with a P/E ratio of 48 for 2023, indicating a relatively high valuation compared to earnings [32][34]. - The company’s revenue from fresh produce and food categories remains significant, with fresh produce accounting for approximately 7.05 billion yuan in revenue [21].