WUSHANG GROUP(SZ:000501) EBSCN·2024-04-30 06:32Investment Rating - The report maintains a "Buy" rating for the company [7][10] Core Views - In Q1 2024, the company reported a revenue of 1.956 billion yuan, a year-on-year decrease of 4.79%, while the net profit attributable to the parent company was 139 million yuan, reflecting a year-on-year increase of 5.12% [2][4] - The comprehensive gross margin for Q1 2024 was 46.48%, an increase of 0.34 percentage points year-on-year, while the period expense ratio rose by 1.07 percentage points to 35.36% [2][5] - The company is focusing on enhancing the consumer experience through digital transformation and store upgrades, with initiatives such as "one store, one policy" for large supermarket adjustments and exploring new business models like membership stores [3][6] Summary by Sections Financial Performance - Q1 2024 revenue was 1.956 billion yuan, down 4.79% year-on-year, with a net profit of 139 million yuan, translating to a fully diluted EPS of 0.18 yuan, up 5.12% year-on-year [4] - The company’s gross margin for Q1 2024 was 46.48%, up 0.34 percentage points year-on-year, while the period expense ratio was 35.36%, up 1.07 percentage points [5] Strategic Initiatives - The company is implementing a strategy focused on "transformation, quality improvement, and strengthening the foundation," with actions aimed at upgrading store experiences and enhancing digital capabilities [3][6] - The integration of major stores and the launch of new projects like the "Night Tour Dream Era" are part of the company's efforts to create diverse consumption experiences [6] Future Outlook - The report maintains profit forecasts for 2024, 2025, and 2026 with EPS estimates of 0.30, 0.33, and 0.35 yuan respectively, highlighting the company's competitive advantages in regions like Wuhan and ongoing improvements in consumer experience [7]