weizhixiang(SH:605089) Guoyuan Securities·2024-04-29 02:30Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock over the next six months [8][13]. Core Insights - The company achieved total revenue of 799.12 million yuan in 2023, a slight increase of 0.10% year-on-year, while the net profit attributable to shareholders was 135.42 million yuan, down 5.42% year-on-year [8][9]. - The report highlights the expansion of the supermarket channel as a key driver for revenue growth, with a new team dedicated to this channel [8][9]. - The gross profit margin improved to 26.38% in 2023, up 2.30 percentage points year-on-year, although the net profit margin decreased to 16.95% due to increased expenses and reduced government subsidies [8][9]. Financial Forecast - The company is projected to achieve net profits of 121.94 million yuan in 2024, 136.02 million yuan in 2025, and 154.65 million yuan in 2026, reflecting year-on-year changes of -9.95%, 11.54%, and 13.69% respectively [8][9]. - The price-to-earnings (P/E) ratio is expected to be 31, 28, and 25 for the years 2024, 2025, and 2026 respectively, based on the market capitalization of 38 billion yuan [8][9]. Revenue Breakdown - In 2023, the revenue from retail, wholesale, direct sales, e-commerce, and supermarket channels was 5.26 billion yuan, 2.13 billion yuan, 0.14 billion yuan, 0.02 billion yuan, and 0.33 billion yuan respectively, with the supermarket channel showing a growth rate of 25.04% in Q1 2024 [8][9]. - The company added 132 new franchise and distribution stores in 2023, with a total of 1823 and 728 stores respectively by year-end [8][9]. Regional Performance - Revenue from East China, Central China, Southwest, and North China in 2023 was 7.45 billion yuan, 0.23 billion yuan, 0.13 billion yuan, and 0.06 billion yuan respectively, with Southwest showing a significant growth of 75.99% year-on-year [8][9].