Zhejiang Yiming Food (SH:605179) Huaxin Securities·2024-04-23 07:30Investment Rating - The report maintains a "Buy" investment rating for the company [2][18]. Core Insights - The company has shown a recovery in performance with a 9% year-on-year increase in total revenue, reaching 2.643 billion yuan in 2023, and a return to profitability with a net profit of 22 million yuan [2][4]. - The company plans to continue optimizing supply chain resources and cost management, aiming to reduce single-store investment costs by 10% in 2024 [2][4]. - The expansion of franchise stores and improvement in single-store efficiency are expected to drive revenue and profitability growth [18]. Financial Performance - In 2023, the company's revenue from dairy products, baked goods, and other foods was 1.286 billion yuan, 985 million yuan, and 134 million yuan respectively, with year-on-year growth rates of 9%, 4%, and 18% [2][4]. - The gross profit margin increased by 1 percentage point to 30.54% in 2023, with a significant rise to 31.57% in Q4 2023 [2][4]. - The company reported a net profit margin of 0.84% in 2023, an increase of 6 percentage points compared to the previous year [2][4]. Store Expansion and Strategy - As of Q4 2023, the company had a total of 2,058 operating stores, with 618 direct-operated and 1,440 franchise stores, reflecting a net increase of 166 franchise stores [2][4]. - The company opened 385 new stores in 2023, primarily in Jiangsu and expanding into new markets in Anhui [2][4]. - Online sales surged by 123% in 2023, contributing to the overall revenue growth [2][4]. Earnings Forecast - The company forecasts earnings per share (EPS) of 0.16 yuan in 2024, 0.23 yuan in 2025, and 0.31 yuan in 2026, with corresponding price-to-earnings (PE) ratios of 68, 48, and 35 times [4][18].