Jiajiayue(SH:603708) KAIYUAN SECURITIES·2024-04-22 03:30Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company reported a revenue of 17.763 billion yuan in 2023, a decrease of 2.3% year-on-year, but achieved a net profit of 136 million yuan, an increase of 127.0% year-on-year. In Q1 2024, revenue grew by 5.7% to 5.189 billion yuan, with a net profit of 147 million yuan, up 7.1% [2][3] - The company plans to accelerate the layout of new business formats, focusing on high-quality development and internal growth through an equity incentive plan. The expansion into snack chains and discount stores is highlighted as a key area of interest [2][3] Financial Performance Summary - In 2023, the company achieved revenue of 177.63 billion yuan, with a net profit of 1.36 billion yuan. The revenue for Q1 2024 was 51.89 billion yuan, with a net profit of 1.47 billion yuan [2][3] - The company’s gross margin for 2023 was 23.9%, with a slight decrease to 24.0% in Q1 2024. The sales, management, and financial expense ratios were 18.9%, 2.1%, and 1.4% respectively in 2023, improving to 16.9%, 1.9%, and 1.2% in Q1 2024 [3] Business Strategy and Outlook - The company opened 110 new stores in 2023, including 37 supermarkets and 56 snack stores, bringing the total number of stores to 1,049. The 2024 plan emphasizes improving traditional business formats, accelerating innovative formats, and enhancing organizational efficiency [4] - The company aims to optimize the profitability model of single stores and focus on franchise as a key growth strategy, particularly for discount and snack store formats [4] Financial Projections - The projected net profits for 2024, 2025, and 2026 are 215 million yuan, 257 million yuan, and 302 million yuan respectively, with corresponding EPS of 0.34 yuan, 0.40 yuan, and 0.47 yuan. The current stock price corresponds to P/E ratios of 29.8, 24.9, and 21.1 for the respective years [2][6]