CHJ(SZ:002345) Orient Securities·2024-04-29 07:02Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected return that is stronger than the market benchmark by more than 15% [21][22]. Core Insights - The company achieved a revenue of 5.9 billion in 2023, representing a year-on-year growth of 33.6%, and a net profit attributable to shareholders of 330 million, up 67.4% year-on-year [18]. - The growth in revenue was primarily driven by a significant increase in gold jewelry sales, with fashion jewelry, traditional gold, and leather goods growing by 20.4%, 56.7%, and 14.4% respectively [18]. - The company plans to expand its store network, with a target of opening over 300 new franchise stores in 2024, aiming for a total of 2,000 stores by 2025 [18]. - The women's bag business faces challenges, with a goodwill impairment of 39.43 million and a loss of 25.12 million for the year, although brand upgrades and new store formats are being introduced to enhance brand perception [18]. - The report expresses optimism about the company's differentiated brand positioning and the potential for growth in store openings, while also anticipating a recovery in the women's bag segment [18]. Financial Projections - The earnings per share (EPS) for 2024-2026 are projected to be 0.48, 0.59, and 0.70 respectively, with a target price of 6.72 based on a 14x PE valuation for 2024 [21][22]. - Revenue is expected to grow from 7.08 billion in 2024 to 9.57 billion in 2026, with corresponding net profits increasing from 427 million to 626 million [22].