Breo(SH:688793)2024-04-25 05:32Investment Rating - The report maintains an "Outperform" investment rating for the company [3][11]. Core Views - The company reported a revenue of 1.275 billion yuan in 2023, a year-on-year increase of 42%, and a net profit attributable to shareholders of -51 million yuan, reflecting a 59% reduction in losses compared to the previous year [2][11]. - The first quarter of 2024 showed significant improvement in profitability, with a gross margin of 62.78% and a net margin of 5.32%, marking the highest quarterly performance since Q1 2022 [3][11]. - The company is expected to achieve a net profit of 79 million yuan in 2024, with projections of 115 million yuan in 2025 and 147 million yuan in 2026, indicating a positive growth trajectory [3][12]. Financial Summary - In 2023, total revenue was 1.275 billion yuan, with a gross profit margin of 59.32% [3][6]. - The company’s operating income for 2024 is projected to be 1.589 billion yuan, with a year-on-year growth rate of 24.7% [12]. - The net profit for 2024 is forecasted to be 79 million yuan, transitioning to positive earnings for the first time since 2022 [12][11]. Market Data - As of April 24, 2024, the closing price of the stock was 33.1 yuan, with a market capitalization of 1,097 million yuan [4]. - The stock has seen a 52-week high of 61.38 yuan and a low of 21 yuan, with a price-to-book ratio of 7.2 [4]. Strategic Developments - The company has made strategic investments in the Douyin channel, which has significantly contributed to revenue growth, with new product sales accounting for 58.9% of total revenue in 2023 [26]. - The company is also expanding its offline retail presence, with improved revenue per store and reduced expense ratios, indicating a positive trend in operational efficiency [26].