Wangfujing(SH:600859) Guotai Junan Securities·2024-04-28 02:32Investment Rating - The investment rating for the company is "Buy" with a target price of 18.41 CNY, maintaining the previous rating of "Buy" [1][2]. Core Views - The company is experiencing better performance in new business formats, while offline consumption is still recovering [1]. - The financial performance for Q1 2024 shows a revenue of 3.308 billion CNY, a year-on-year decrease of 1.74%, and a net profit attributable to shareholders of 201 million CNY, down 10.86% year-on-year [1][6]. - The company is expected to maintain earnings per share (EPS) of 0.74 CNY, 0.87 CNY, and 0.93 CNY for the years 2024 to 2026 respectively, with a target price based on a 25x PE ratio [1][6]. Financial Summary - Revenue for 2024 is projected at 12.904 billion CNY, with a net profit of 836 million CNY, reflecting a significant increase from 709 million CNY in 2023 [6][8]. - The gross profit margin for Q1 2024 is reported at 41.2%, with a year-on-year decrease of 1.6 percentage points [1][6]. - The company’s net asset return rate is expected to rise from 1.0% in 2022 to 4.7% in 2025 [6][8]. Business Performance - The company’s new business formats, including outlet and duty-free operations, are showing strong growth, contributing significantly to overall performance [1][6]. - The duty-free segment continues to expand, with revenue growth expected to accelerate as new projects are developed [1][6]. - The company is focusing on enhancing service experiences and meeting diverse consumer needs, which is expected to stabilize and improve overall profitability [1][6].