Bestore(603719) 光大证券·2024-04-29 07:02Investment Rating - The report maintains a "Buy" rating for the company [7][13]. Core Views - The company reported a decline in revenue and net profit for 2023, with total revenue of 8.046 billion yuan, down 14.76% year-on-year, and a net profit of 180 million yuan, down 46.26% year-on-year [4]. - The first quarter of 2024 showed signs of recovery with a revenue increase of 2.79% year-on-year, reaching 2.451 billion yuan, although net profit decreased by 57.98% year-on-year [4][12]. - The company is undergoing product structure adjustments which have impacted gross margins, but there are expectations for improved profitability in 2024 due to online channel reforms and enhanced management [5][13]. Summary by Sections Financial Performance - In 2023, the company achieved total revenue of 8.046 billion yuan, with a net profit of 180 million yuan and a significant drop in net profit margin to 2.24% [4][5]. - For Q4 2023, revenue was 2.046 billion yuan, with a net loss of 11 million yuan [4]. - Q1 2024 saw revenue of 2.451 billion yuan, with a net profit of 62 million yuan, indicating a recovery from the previous quarter [4][12]. Profitability Metrics - The gross margin for 2023 was 27.75%, with a decline in Q4 to 25.43% and a slight recovery to 26.43% in Q1 2024 [5]. - The net profit margin for Q1 2024 was 2.55%, showing a recovery from a negative margin in Q4 2023 [5]. Revenue Breakdown - In Q1 2024, online revenue was 1.286 billion yuan, up 6.65% year-on-year, while offline revenue was 1.459 billion yuan, up 0.28% year-on-year [12]. - The company faced challenges in its offline business, with a net decrease of 140 stores in Q1 2024 [12]. Future Outlook - The company has adjusted its profit forecasts for 2024 and 2025, now expecting net profits of 287 million yuan and 317 million yuan respectively, reflecting a downward revision of 25.58% and 26.53% [13]. - The report emphasizes that ongoing adjustments in the business model are expected to benefit long-term growth, maintaining a "Buy" rating [13].