Jiajiayue(SH:603708) Guotai Junan Securities·2024-04-22 08:02Investment Rating - The report maintains a rating of "Buy" for the company, with a target price adjusted to 13.50 yuan from the previous 14.48 yuan [2][4]. Core Insights - The company has significantly improved its fundamental management capabilities, continuously enhancing its network layout and operational synergy, which is expected to drive high-quality development in the future [2][4]. - The company reported a revenue of 17.763 billion yuan in 2023, a decrease of 2.31% year-on-year, while the net profit attributable to shareholders was 1.36 billion yuan, reflecting a substantial increase of 127.04% [2][4]. - The company is adapting to market and consumer demand changes by optimizing existing stores and accelerating new store openings, which has led to improved operational quality [2][4]. Summary by Sections Investment Highlights - The company is focusing on enhancing basic management capabilities and optimizing store operations, which has resulted in a notable performance increase [2][4]. - The company has opened 12 new direct-operated stores and 8 franchise stores, bringing the total number of stores to 1,065 [2][4]. - The online business sales ratio is projected to be 5.98% in 2024, indicating a strategic shift towards integrating online and offline channels [2][4]. Financial Performance - In 2023, the company achieved an operating income of 17.763 billion yuan, with a net profit of 1.36 billion yuan, marking a significant increase compared to the previous year [2][4]. - The report forecasts an EPS of 0.23 yuan for 2024, slightly lower than the industry average, with a projected EPS of 0.25 yuan for 2026 [2][4]. - The company’s total assets are expected to reach 14.747 billion yuan by 2026, with a net asset return rate projected at 5.3% [2][4]. Market Position - The company operates in the retail trade industry, focusing on supermarket chain operations, primarily in Shandong Province [2][4]. - The company is leveraging its extensive store network to enhance market penetration and consumer engagement through innovative business models [2][4]. - The report highlights the company's competitive advantage in adapting to consumer preferences, particularly in offering value-for-money products [2][4].