Bestore(SH:603719) Minsheng Securities·2024-04-28 00:02Investment Rating - The report maintains a "Recommended" rating for the company [3][16]. Core Insights - The company has implemented a "good products at reasonable prices" strategy, focusing on optimizing costs without affecting quality, which has led to a decline in gross margin in Q4 2023 and Q1 2024 [2][3]. - Revenue for 2023 was 8.046 billion yuan, a decrease of 14.76% year-on-year, with a net profit attributable to shareholders of 180 million yuan, down 46.26% year-on-year [15][17]. - The company plans to enhance store management efficiency and product innovation from 2024 to 2026, with projected revenues of 81.6 billion yuan in 2024, reflecting a growth of 1.4% [16][19]. Financial Performance Summary - In 2023, the company achieved a gross margin of 27.75%, which decreased to 25.43% in Q4 2023 and 26.43% in Q1 2024 [2]. - The sales, management, R&D, and financial expense ratios for 2023 were 19.55%, 5.55%, 0.54%, and -0.14%, respectively, indicating an increase in expense ratios due to declining revenue [2]. - The forecast for net profit for 2024 is 137 million yuan, with a projected PE ratio of 43x [17].