Ligao Foods (SZ:300973) Huachuang Securities·2024-04-29 03:02Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating a positive outlook for future performance [4][31]. Core Insights - The company reported a revenue of 3.499 billion yuan for 2023, representing a year-on-year growth of 20.22%. However, the net profit attributable to shareholders decreased by 49.21% to 73 million yuan [4][6]. - In Q4 2023, the company achieved a revenue of 917 million yuan, a year-on-year increase of 6.67%, but reported a net loss of 85 million yuan. In Q1 2024, revenue was 916 million yuan, up 15.31% year-on-year, with a net profit of 77 million yuan, reflecting a significant recovery [4][6]. - The company aims to enhance efficiency and reduce costs in 2024, with initial results showing improved profitability in Q1 [4][6]. Financial Performance Summary - Total revenue for 2023 was 3.499 billion yuan, with a projected increase to 4.024 billion yuan in 2024, reflecting a growth rate of 15.0% [7]. - The net profit for 2024 is expected to rebound significantly to 300 million yuan, marking a growth rate of 310.5% compared to 2023 [7]. - The earnings per share (EPS) is projected to rise from 0.43 yuan in 2023 to 1.77 yuan in 2024, with a price-to-earnings (P/E) ratio of 19 [7]. Revenue and Profitability Trends - The company’s gross margin for 2023 was 31.4%, slightly down by 0.4 percentage points year-on-year. However, the gross margin is expected to improve to 32.0% in 2024 [4][7]. - The net profit margin for 2023 was 2.0%, down by 2.9 percentage points year-on-year, but is projected to increase to 7.2% in 2024 [7]. - The company’s revenue growth rate is expected to stabilize around 15% for 2024, with a focus on improving operational efficiency and cost management [4][6].