CHJ(SZ:002345) Minsheng Securities·2024-04-28 09:30Investment Rating - The report maintains a "Buy" rating for the company with a current price of 6.15 yuan [1]. Core Insights - In 2023, the company achieved a revenue of 5.9 billion yuan, representing a year-on-year increase of 33.56%. The net profit attributable to shareholders was 333 million yuan, up 67.41% year-on-year [3]. - The first quarter of 2024 saw a revenue of 1.796 billion yuan, a year-on-year increase of 17.87%, with a net profit of 131 million yuan, up 5.47% year-on-year [3]. - The company reported a goodwill impairment provision of 39.43 million yuan in 2023, affecting the net profit growth rate [3]. - The company is focusing on product innovation and expanding its franchise channels, with projected revenues of 7.126 billion, 8.357 billion, and 9.566 billion yuan for 2024, 2025, and 2026, respectively [3]. Financial Summary - Revenue and Profit Forecast: - 2023A: Revenue 5.9 billion yuan, Net Profit 333 million yuan - 2024E: Revenue 7.126 billion yuan, Net Profit 450 million yuan - 2025E: Revenue 8.357 billion yuan, Net Profit 533 million yuan - 2026E: Revenue 9.566 billion yuan, Net Profit 616 million yuan [9][11]. - Profitability Metrics: - Gross margin for 2023 was 26.07%, down 4.11 percentage points year-on-year [3]. - Net profit margin for 2023 was 5.59%, up 0.95 percentage points year-on-year [3]. - Earnings Per Share (EPS) Forecast: - 2023A: 0.38 yuan - 2024E: 0.51 yuan - 2025E: 0.60 yuan - 2026E: 0.69 yuan [9][11]. Strategic Initiatives - The company is enhancing its brand influence through product innovation and market expansion, including the launch of new product lines and an increase in franchise stores [3]. - In 2023, the company added 293 new jewelry franchise stores, bringing the total to 1,713 stores by year-end [3]. - The company plans to open over 300 new jewelry franchise stores in 2024 [3].