Shouxiangu(SH:603896) China Post Securities·2024-04-28 07:00Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance in the coming months [38]. Core Insights - The company has shown signs of recovery in its first quarter of 2024, with a revenue increase of 7.15% year-on-year, reaching 0.22 billion [17]. - The company’s diversified marketing strategies are expanding its growth potential, particularly through enhanced channel promotion and regional market development [6][19]. - The financial forecasts predict a gradual increase in revenue and net profit over the next few years, with expected revenues of 0.86 billion, 0.95 billion, and 1.06 billion for 2024, 2025, and 2026 respectively [21][40]. Financial Performance Summary - In 2023, the company reported a revenue of 0.784 billion, a decrease of 5.39% compared to the previous year, with a net profit of 0.254 billion, down 8.39% [17]. - The gross margin for 2023 was 82.72%, slightly down from the previous year, with specific product margins showing variability [5]. - The company’s operating cash flow for 2023 was 0.315 billion, reflecting a decrease of 7.68% [17]. Revenue Breakdown - The revenue from the company's main product categories showed a decline, with the revenue from the iron skin Dendrobium products at 0.127 billion, down 2.03% [5]. - The company’s revenue from the internet sales channel grew by 7.35%, indicating a positive trend in online sales [19]. Future Projections - The company is expected to achieve a net profit of 0.306 billion in 2024, with a projected growth rate of 20.06% [21]. - The earnings per share (EPS) are forecasted to increase from 1.26 in 2023 to 1.51 in 2024, reflecting a positive growth trajectory [21].