Shouxiangu(SH:603896) KAIYUAN SECURITIES·2024-04-27 23:30Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company experienced slight pressure on revenue and profit in 2023, with a revenue of 784 million yuan (down 5.39% year-on-year) and a net profit of 254 million yuan (down 8.39% year-on-year). However, Q1 2024 showed a recovery with revenue of 221 million yuan (up 7.15% year-on-year) and a net profit of 77 million yuan (up 23.19% year-on-year) [8] - The company is optimistic about the growth potential of its products, particularly Ganoderma lucidum spore powder and Dendrobium officinale, driven by increasing health awareness among consumers. The ongoing marketing reforms are expected to further empower brand development [8][11] - The company has adjusted its profit forecasts for 2024-2026, now expecting net profits of 285 million yuan, 324 million yuan, and 362 million yuan respectively, with corresponding EPS of 1.41 yuan, 1.61 yuan, and 1.79 yuan [8][11] Financial Performance Summary - In 2023, the company achieved a gross margin of 82.72% (down 1.69 percentage points) and a net margin of 32.44% (down 1.03 percentage points) [8] - The sales expense ratio increased to 40.39% (up 1.87 percentage points), while the management expense ratio rose to 11.09% (up 0.74 percentage points) [8] - The company’s revenue from Ganoderma lucidum spore products was 534 million yuan (down 7.92%), with a gross margin of 87.81% [11] - Revenue from Dendrobium officinale products was 127 million yuan (down 2.03%), with a gross margin of 78.64% [11] - The company is focusing on establishing a digital marketing center and restructuring its marketing management to enhance its marketing mechanisms [11]