CBEST(SH:600729) Minsheng Securities·2024-04-21 09:30Investment Rating - The report maintains a "Recommended" rating for Chongqing Department Store (600729.SH) based on its strong financial performance and low valuation under high dividend payouts [10][11]. Core Viewpoints - In 2023, the company achieved a revenue of 18.985 billion yuan, a year-on-year increase of 3.72%, and a net profit attributable to shareholders of 1.315 billion yuan, up 48.84% year-on-year [1][2]. - The company has successfully implemented cost reduction measures, saving 84.66 million yuan in rent and 56.80 million yuan in marketing and energy expenses, contributing to improved profitability [10]. - The digital transformation has enhanced member sales, with membership numbers reaching 27.6 million and sales amounting to 16.498 billion yuan, accounting for 59% of total retail sales [10]. Financial Performance Summary - 2023 Financial Results: Revenue reached 18.985 billion yuan, with a net profit of 1.315 billion yuan, reflecting a significant increase in profitability [1][2]. - Quarterly Performance: In Q4 2023, revenue was 4.207 billion yuan, a year-on-year increase of 10.86%, and net profit was 0.187 billion yuan, up 213.17% year-on-year [1]. - Segment Performance: The department store segment saw revenue growth of 8.81%, while the supermarket segment declined by 5.51% [1]. Cost and Efficiency Metrics - Gross Margin: The overall gross margin improved by 0.28 percentage points to 19.89% in 2023, with the department store segment achieving a gross margin of 65.99% [1]. - Expense Ratios: The company reported a sales expense ratio of 13.75% and a management expense ratio of 5.19%, indicating effective cost management strategies [1]. Future Projections - The company is projected to achieve net profits of 1.446 billion yuan, 1.597 billion yuan, and 1.763 billion yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 10.0% and 10.4% [10].