Investment Rating - The report maintains a "Recommended" rating for the company [1] Core Views - The company has shifted towards a light-asset model, resulting in a strategic transformation and a reduction in direct-operated stores while increasing partner stores [1] - The company reported a revenue of 1.209 billion HKD for 2023, a year-on-year decrease of 22.49%, but achieved a net profit of 181 million HKD, marking a turnaround from losses [1] - The proposed final dividend is 0.3153 HKD per share, totaling approximately 400 million HKD [1] Financial Summary - Revenue composition shows that self-owned products accounted for 71.1% of total revenue, with beer at 10.4%, beverage alcohol at 41.3%, snacks at 19.4%, and third-party brand alcohol at 18.7% [1] - The gross margin for self-owned alcohol remained stable at 75.7%, while third-party alcohol gross margin improved to 54.8% [1] - The company has signed contracts for 383 partner stores, with 188 already opened, covering 136 cities [1] - The number of direct-operated stores decreased to 479 from 767 year-on-year, with a significant reduction in first and second-tier cities [1] - The average daily sales per store in first-tier cities was 7,500 HKD, while partner stores performed better with 9,400 HKD in first-tier cities [1] - Cost control measures led to a decrease in various expense ratios, with raw material costs at 29.8% and labor costs at 24.7% [1] Earnings Forecast and Valuation - The earnings per share (EPS) forecast for 2024 and 2025 has been adjusted to 0.16 HKD and 0.23 HKD respectively, with a new forecast for 2026 at 0.33 HKD [1] - The current stock price corresponds to a price-to-earnings (PE) ratio of 16 times for 2024, 11 times for 2025, and 8 times for 2026 [1] - The target price is set at 3.41 HKD, based on a 20 times PE for 2024 [1]
2023年报点评：轻资产模式扩张，派息增加