Bestore(603719) 开源证券·2024-04-28 13:01Investment Rating - The investment rating for the company is "Buy" (maintained) [21] Core Views - The company reported a revenue of 8.05 billion yuan in 2023, a year-on-year decrease of 14.8%, and a net profit attributable to shareholders of 180 million yuan, down 46.3% year-on-year. In Q1 2024, revenue rebounded to 2.45 billion yuan, up 2.8% year-on-year, while net profit attributable to shareholders was 60 million yuan, down 58.0% year-on-year. The decline in 2023 was primarily due to a significant drop in e-commerce revenue as traffic shifted to content e-commerce platforms. However, Q1 2024 saw rapid growth in group buying business due to channel expansion and marketing efforts during the New Year festival, leading to a recovery in revenue growth. Despite this, profit margins were pressured due to price reductions [23][24]. Financial Summary - The company's revenue is projected to recover to 8.575 billion yuan in 2024, with a year-on-year growth of 6.6%. The net profit attributable to shareholders is expected to be 186 million yuan, reflecting a slight increase of 3.4% [25]. - The company's gross margin is forecasted to be 26.5% in 2024, with a net margin of 2.2% [25]. - Earnings per share (EPS) are projected to be 0.46 yuan in 2024, with corresponding price-to-earnings (P/E) ratios of 31.6, 26.7, and 22.8 for 2024, 2025, and 2026 respectively [23][25]. Business Performance - The company has optimized its multi-channel layout, enhancing e-commerce, direct retail, and group buying operations. E-commerce revenue grew by 6.7% to 1.29 billion yuan in Q1 2024, while direct retail revenue increased by 10.2% to 640 million yuan. The group buying business saw a significant increase of 57.3% to 180 million yuan during the same period [24].