经营承压，静待拐点

Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 15% in the next 6 to 12 months compared to the benchmark index [11][10]. Core Insights - The company reported a revenue of 799 million yuan in 2023, a slight increase of 0.10% year-on-year, while the net profit was 135 million yuan, down 5.42% year-on-year [4]. - The company is experiencing a slow recovery in demand and is steadily expanding new channels, with significant revenue contributions from various product categories [4]. - Increased expenditure on various costs has pressured profitability, with a gross margin of 25.00% in Q1 2024, down 1.21 percentage points year-on-year [4]. - The company is focusing on expanding its retail channels, particularly in the East China region, and enhancing its product offerings to maintain competitiveness [4]. - Revenue projections for 2024 to 2026 are set at 870 million yuan, 987 million yuan, and 1,088 million yuan respectively, with net profits expected to be 144 million yuan, 164 million yuan, and 177 million yuan [4]. Financial Summary - The company’s total shares outstanding are 138 million, with a market price of 28.08 yuan, resulting in a market capitalization of 3,875 million yuan [1]. - The earnings per share (EPS) for 2024 is projected to be 1.05 yuan, with a price-to-earnings (P/E) ratio of 26.8 [4]. - The return on equity (ROE) is expected to stabilize around 10% to 11% over the next few years [4].