2024开局积极，期待转型成效逐步显现

Investment Rating - The investment rating for the company is "Accumulate (Maintain)" with a target price of 21.26 CNY, based on a current price of 18.19 CNY [2]. Core Views - The company reported a revenue of 6.598 billion CNY in 2023, a decrease of 7.2% year-on-year, while the net profit attributable to the parent company was 500 million CNY, an increase of 5.9% year-on-year. The first quarter of 2024 showed a revenue of 1.905 billion CNY, down 3.8% year-on-year, but net profit increased by 11.2% to 256 million CNY [1][4]. - The company is undergoing strategic adjustments to address high fixed costs and insufficient brand investment, aiming to reverse the trend of declining brand audience. In 2023, domestic revenue decreased by approximately 5.2% due to proactive price control policies [1]. - The overseas business faced challenges from declining birth rates, high inflation in Europe and the US, and geopolitical factors affecting sales, leading to a 12.9% year-on-year revenue decline [1]. Financial Performance Summary - Revenue projections for 2024-2026 are 7.607 billion CNY, 8.307 billion CNY, and 8.772 billion CNY, with corresponding growth rates of 15.3%, 9.2%, and 5.6% [4]. - Net profit attributable to the parent company is expected to be 654 million CNY, 743 million CNY, and 814 million CNY for 2024-2026, with growth rates of 30.7%, 13.7%, and 9.5% respectively [4]. - Earnings per share (EPS) are projected to be 0.97 CNY, 1.10 CNY, and 1.20 CNY for the same period [4]. - The company’s financial metrics indicate a PE ratio of 22 for 2024, with a target price of 21.26 CNY based on comparable company valuations [4].