CHJ(SZ:002345) ZHONGTAI SECURITIES·2024-04-30 02:00Investment Rating - The investment rating for the company is "Buy" (maintained) with a market price of 6.15 [1]. Core Views - The company is experiencing rapid growth in store expansion, validating its mid-term growth logic despite potential downward pressure on gross and net profit margins due to adjustments in store and product structures [3][4]. - The company has adjusted its profit forecasts, expecting revenues of 68.7 billion, 77.2 billion, and 85.9 billion yuan for 2024-2026, with year-on-year growth rates of 16.5%, 12.4%, and 11.2% respectively. The net profit attributable to the parent company is projected to be 4.3 billion, 4.8 billion, and 5.3 billion yuan for the same period, with growth rates of 29.4%, 10.5%, and 10.2% respectively [4]. Financial Summary - Total share capital is 889 million shares, with a circulating market value of 5,334 million yuan [2]. - Revenue for 2022 was 4,417 million yuan, with a forecast of 5,900 million yuan for 2023, reflecting a year-on-year growth of 33.6% [2]. - The company's earnings per share (EPS) are projected to increase from 0.38 yuan in 2023 to 0.59 yuan in 2026, with corresponding P/E ratios decreasing from 16.4 to 10.4 over the same period [2][4]. - The company reported a gross margin of 24.92% and a net margin of 7.35% in Q1 2024, with both margins showing a decline compared to the previous year [4]. Store Expansion and Growth Logic - In 2023, the company accelerated its store expansion, opening a net of 241 new stores, resulting in a 20.8% year-on-year increase in total store count. The rapid expansion is attributed to the opening of franchise opportunities [4].