ITG(600755) Huachuang Securities·2024-04-26 09:02Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 8.91 CNY, indicating a potential upside of 19% from the current market value [3][11]. Core Insights - The company reported a net profit attributable to shareholders of 1.91 billion CNY for 2023, a decrease of 47% year-on-year, primarily due to a challenging international environment and insufficient domestic demand [1][3]. - The company has significantly increased its dividend payout ratio to 57.6%, reflecting a strong commitment to shareholder returns, with a corresponding dividend yield of 6.8% based on the current market value [1][3]. - The company is focusing on industrialization, internationalization, and digitalization strategies to enhance operational efficiency and expand its market presence [1][3]. Financial Performance Summary - Revenue: The company achieved total revenue of 468.2 billion CNY in 2023, down 10% year-on-year. The revenue breakdown includes 465.3 billion CNY from supply chain operations, 740 million CNY from health technology, and 2.2 billion CNY from financial and real estate services [1][3]. - Gross Profit: The gross profit for 2023 was 6.41 billion CNY, a decline of 32% year-on-year, with a gross margin of 1.4% [1][3]. - Net Profit: The net profit attributable to shareholders was 1.91 billion CNY, with a net profit margin of 0.4%, down from the previous year [1][3]. - Future Projections: The company is expected to achieve net profits of 2.51 billion CNY in 2024 and 2.8 billion CNY in 2025, with corresponding earnings per share (EPS) of 1.14 CNY and 1.27 CNY [3][11]. Business Segment Analysis - Supply Chain Business: This segment accounted for 99% of total revenue, with a slight decrease in revenue but an increase in gross margin due to product optimization [1][3]. - Health Technology: This segment saw a significant revenue increase of 64.8% year-on-year, driven by ongoing transformation and expansion efforts [1][3]. - Financial and Real Estate Services: Revenue from this segment dropped by 86.3% year-on-year, primarily due to a decline in real estate project settlements [1][3].