LFX(600612) EBSCN·2024-04-30 01:33Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company's performance in 2023 and Q1 2024 aligns with expectations, with revenue and net profit showing positive growth [5] - The company has initiated its third round of the "Double Hundred Action" to enhance its brand and product offerings [4] Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 714.36 billion yuan, a year-on-year increase of 13.37%, and a net profit of 22.14 billion yuan, translating to a fully diluted EPS of 4.23 yuan, up 30.23% [2] - For Q1 2024, the company reported a revenue of 256.30 billion yuan, a year-on-year growth of 4.36%, and a net profit of 8.02 billion yuan, with a fully diluted EPS of 1.53 yuan, reflecting a 12.00% increase [2] Profitability Metrics - The company's overall gross margin for 2023 was 8.30%, up 0.72 percentage points year-on-year, while Q1 2024 saw a gross margin of 8.37%, an increase of 0.35 percentage points [3] - The period expense ratio decreased to 2.01% in Q1 2024, down 0.29 percentage points year-on-year [3] Business Expansion and Strategy - The company added 385 new stores in 2023, bringing the total to 5,994 stores globally, including 15 overseas [4] - The launch of the upgraded "Rare Product Private Consultation Center" aims to enhance high-end product sales and digital transformation initiatives [4] Earnings Forecast - The report maintains earnings per share (EPS) forecasts of 5.00 yuan for 2024, 5.75 yuan for 2025, and introduces a new forecast of 6.46 yuan for 2026 [5]