Q1团餐回暖，新开店稳步推进

Investment Rating - The report maintains a "Buy" rating for the company, with expected earnings growth leading to a PE ratio of 17.0/14.4/12.7X for 2024E-2026E [7][8]. Core Insights - The company reported a Q1 2024 revenue of 354 million RMB, a year-on-year increase of 10.74%, while the net profit attributable to shareholders was 39.62 million RMB, a decrease of 3.43% [1][7]. - The company opened 203 new franchise stores in Q1 2024, achieving 20.3% of its annual target, indicating steady progress despite the impact of the Spring Festival [7]. - The gross margin improved to 25.9%, with a decrease in selling and administrative expense ratios, contributing to enhanced profitability [7]. Financial Summary - Revenue growth rates are projected at 15.56% for 2024E, 15.42% for 2025E, and 14.08% for 2026E, with total revenues expected to reach 1.884 billion RMB in 2024E [3][7]. - The net profit attributable to shareholders is forecasted to be 244 million RMB in 2024E, with a growth rate of 14.38% [3][7]. - The company’s return on equity (ROE) is expected to be 10.27% in 2024E, improving to 11.66% by 2026E [3][7]. Business Segmentation - Franchise income for Q1 2024 was 260 million RMB, up 8.3%, with a total of 5,094 stores, reflecting a 10.7% increase in store count [7]. - The catering business revenue was 83.32 million RMB, showing a significant recovery with a 20.9% increase, contributing 23.6% to total revenue [7]. - Regional performance varied, with East China showing a revenue increase of 7.9%, while South China experienced a notable 38.4% growth [7].