BIEM(SZ:002832) Soochow Securities·2024-04-29 11:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 3.536 billion yuan in 2023, representing a year-on-year increase of 22.58%, and a net profit attributable to shareholders of 910.75 million yuan, up 25.17% year-on-year. The revenue growth outpaced industry averages, and the net profit margin showed a steady increase. In Q4 2023, revenue was 740 million yuan, with a year-on-year growth of 12.14%, while net profit decreased by 0.88% year-on-year due to increased marketing expenses and new brand promotion investments [3] - For Q1 2024, the company achieved a revenue of 1.268 billion yuan, a year-on-year increase of 17.55%, and a net profit of 362 million yuan, up 20.43% year-on-year, indicating robust growth despite a weak overall domestic consumption environment [3] - The company plans to distribute a cash dividend of 1.0 yuan per share, with a payout ratio of approximately 62.7%, an increase of 39 percentage points year-on-year [3] Summary by Sections Revenue and Profitability - Total revenue for 2023 was 3.536 billion yuan, with a year-on-year growth of 22.58%. The net profit attributable to shareholders was 910.75 million yuan, reflecting a 25.17% increase year-on-year. The company maintained a leading growth rate in the industry [2][3] - Q4 2023 revenue was 740 million yuan, with a year-on-year growth of 12.14%, while net profit decreased by 0.88% year-on-year due to increased marketing investments [3] Channel Performance - Direct sales revenue grew by 34.55% year-on-year, while franchise revenue slightly declined by 2.07%. Online sales saw a double-digit growth of 16.08% [3] - As of the end of 2023, the company had 607 direct sales stores, a net increase of 28 stores year-on-year, with single-store revenue increasing by 28.4% [3] Financial Forecasts - The company is projected to achieve revenues of 4.245 billion yuan in 2024, 5.032 billion yuan in 2025, and 5.897 billion yuan in 2026, with corresponding net profits of 1.162 billion yuan, 1.407 billion yuan, and 1.670 billion yuan respectively [2][3] - The P/E ratios for 2024, 2025, and 2026 are estimated to be 14.59, 12.05, and 10.15 respectively, indicating a favorable valuation outlook [2][3] Cash Flow and Inventory Management - Operating cash flow for Q1 2024 was 540 million yuan, a year-on-year increase of 7.34%, with cash and cash equivalents amounting to 3.23 billion yuan [3] - Inventory as of Q1 2024 was 645 million yuan, down 1.2% year-on-year, with inventory turnover days reduced by 40 days to 200 days, indicating improved inventory management [3]