INZONE GROUP(SH:600858) EBSCN·2024-04-30 11:02Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [4][3]. Core Insights - The company reported a revenue of 1.672 billion yuan for Q1 2024, representing a year-on-year growth of 1.80%. However, the net profit attributable to shareholders decreased by 2.37% to 91 million yuan, with a diluted EPS of 0.18 yuan [1][20]. - The company has improved its profit performance beyond previous expectations, primarily due to better-than-expected recovery in the supermarket segment, suggesting effective business optimization in 2023 [3][19]. - The company has adjusted its business structure, focusing on four operational lines: department stores, supermarkets, online sales, and group purchases, which has led to improved operational management [19][17]. Financial Performance - In Q1 2024, the company's comprehensive gross margin increased by 0.09 percentage points to 39.70%, while the expense ratio rose by 0.67 percentage points to 29.91% [18][2]. - The company opened one new store and closed another in Q1 2024, with notable revenue growth in the Weifang and Liaocheng regions, at 9.28% and 9.50% respectively [2][19]. - The performance of large supermarkets and shopping centers was strong, with revenue growth of 6.42% and 4.95% respectively, while the department store segment faced challenges with a revenue decline of 5.04% [2][26]. Earnings Forecast - The earnings per share (EPS) forecasts for 2024, 2025, and 2026 have been raised by 13%, 17%, and 20% respectively, now projected at 0.17, 0.20, and 0.22 yuan [3][4]. - The company is expected to benefit from its strong brand presence, scale, and channel advantages in the Shandong market, along with continuous optimization of its supply chain and physical stores [3][19].