YYTM(SH:600655) Guotai Junan Securities·2024-04-30 02:02Investment Rating - The report maintains an "Accumulate" rating for Yuyuan Group (600655) with a target price of 7.24 CNY, unchanged from the previous rating [1][2]. Core Views - The company is focusing on expanding its jewelry stores while streamlining operations to enhance growth potential. Despite a revenue increase of 12.56% year-on-year in Q1 2024, net profit decreased by 43.48% due to rising financial costs and reduced investment income [1][2]. - The fashion segment continues to show steady growth, with new model stores expanding [1][2]. Summary by Sections Financial Performance - In Q1 2024, the company reported revenue of 17.22 billion CNY, a year-on-year increase of 12.56%. However, the net profit attributable to shareholders was 1.80 billion CNY, down 43.48% year-on-year [1][2]. - The jewelry fashion business generated revenue of 13.01 billion CNY, up 13.2% year-on-year, while the restaurant segment saw a decline of 8.3% to 340 million CNY [1][2]. Business Expansion - The company added 93 new jewelry stores in Q1 2024, bringing the total to 5,108 stores, indicating a strong channel expansion [1][2]. - The report highlights the rapid expansion of new model stores in the jewelry business, which is expected to drive future growth [1][2]. Financial Metrics - The report projects earnings per share (EPS) of 0.59 CNY for 2024, with a price-to-earnings (PE) ratio of 12.3 times [1][2]. - The company's gross profit margin for Q1 2024 was reported at 13.74%, a decrease of 0.29 percentage points year-on-year [1][2]. Market Position - Yuyuan Group is positioned in the retail trade industry, specifically in the optional consumer goods sector, with a market capitalization of 22.79 billion CNY [1][2].