Wangfujing(SH:600859) Guotai Junan Securities·2024-04-22 09:32Investment Rating - The investment rating for Wangfujing (600859) is "Buy" with a target price of 18.41 CNY, down from the previous forecast of 20.88 CNY [1][2]. Core Views - The company is experiencing multi-format collaborative development, with confidence boosted by dividend distributions and share buybacks [1]. - The company's revenue for 2023 is reported at 12.224 billion CNY, representing a year-on-year increase of 13.19%, while the net profit attributable to shareholders is 709 million CNY, a significant increase of 264.14% year-on-year [1][3]. - The company has a strong performance in the outlet segment, while the supermarket segment shows signs of weakness, and the duty-free segment is still in the process of growth [1][3]. Summary by Sections Investment Highlights - The company has a diversified business model supported by outlet and shopping center growth, while the duty-free segment is expected to improve gradually [1]. - The company plans to distribute a cash dividend of 2.00 CNY per share, with a dividend payout ratio of 32% for 2023 [1]. - The company is also planning to repurchase shares with a total amount not less than 10 million CNY and not exceeding 20 million CNY, with a repurchase price cap of 17.50 CNY per share [1]. Financial Performance - For 2023, the company reported a revenue of 12.224 billion CNY, with a net profit of 709 million CNY, and a non-recurring net profit of 636 million CNY [1][3]. - The company’s gross margin improved by 4.83%, with significant revenue growth in shopping centers (+35.09%) and outlets (+6.22%) [1]. - The company’s earnings per share (EPS) for 2024 is projected to be 0.74 CNY, with further growth expected in subsequent years [1][3]. Market Position - The company operates in the retail sector, focusing on department stores and has a market capitalization of 14.347 billion CNY [1][2]. - The stock has a circulating share ratio of 96%, indicating a high level of liquidity [1]. - The company’s financial metrics show a net asset return (ROE) of 1.0% for 2023, with expectations for improvement in the coming years [1][3].