YYTM(SH:600655) KAIYUAN SECURITIES·2024-04-28 08:30Investment Rating - The investment rating for the company is "Buy" (maintained) [2][3] Core Views - The company reported a 12.6% year-on-year increase in revenue for Q1 2024, reaching 172.21 billion yuan, while net profit attributable to shareholders decreased by 43.5% to 1.80 billion yuan, primarily due to increased financial expenses and reduced investment income [3][4] - The jewelry segment continues to grow, driven by a dual strategy of "industrial operation + industrial investment" and the implementation of the "Eastern Lifestyle Aesthetics" strategy, with promising prospects in emerging consumer sectors [3][4] - The company maintains its previous profit forecasts, expecting net profits attributable to shareholders to be 2.875 billion yuan, 3.184 billion yuan, and 3.463 billion yuan for 2024-2026, corresponding to EPS of 0.74 yuan, 0.82 yuan, and 0.89 yuan, with current stock prices reflecting P/E ratios of 7.9, 7.2, and 6.6 times respectively [3][4] Summary by Sections Jewelry Business Performance - In Q1 2024, the jewelry fashion business achieved revenue of 130.13 billion yuan, a year-on-year increase of 13.2%, with a gross margin of 7.13%, down 0.55 percentage points [4] - The company added 93 new stores under the "Laomiao" and "Yayi" brands, bringing the total to 5,087 stores, maintaining a rapid expansion pace [4] - The launch of the "Ancient Rhythm Gold" series, inspired by the "Fish Turns into Dragon" legend, received positive market feedback, contributing to strong sales performance [4] Industry Optimization and Growth - The company is optimizing and upgrading its various consumer sectors in response to the steady recovery of the consumer market [5] - Revenue from the restaurant sector decreased by 8.3% to 340 million yuan, while the pharmaceutical health sector grew by 21.8% to 122 million yuan, driven by the growth of traditional Chinese medicine health products [5] - The implementation of the Eastern Lifestyle Aesthetics strategy is expected to enhance product and brand strength, providing a competitive advantage in the market [5] Financial Forecasts - The company forecasts revenue growth from 65.005 billion yuan in 2024 to 78.902 billion yuan in 2026, with corresponding net profits expected to rise from 2.875 billion yuan to 3.463 billion yuan [6] - The gross margin is projected to improve from 15.1% in 2024 to 15.9% in 2026, while the net profit margin is expected to stabilize around 4.0% [6]