Wangfujing(SH:600859) Guoxin Securities·2024-05-01 13:06Investment Rating - The report downgrades the investment rating of the company to "Accumulate" due to the impact of new projects and the overall consumption environment [1][8][11]. Core Views - The company's 2023 revenue reached 12.224 billion yuan, an increase of 13.19%, while net profit attributable to shareholders was 709 million yuan, a significant increase of 264.14% [5][7]. - The new tax-free and taxable projects have negatively impacted the company's performance, with estimated losses of approximately 450 million yuan affecting short-term operations [6][7]. - The report anticipates that the new projects will continue to incur losses in 2024-2025, leading to a downward revision of the earnings per share (EPS) forecast to 0.74/0.85/1.00 yuan for 2024-2026 [1][8]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 12.224 billion yuan, with a same-store sales growth of 11.19% [5][6]. - The net profit for 2023 was 709 million yuan, reflecting a recovery from previous losses, while the non-recurring profit was 635 million yuan [5][6]. - The company plans to distribute a dividend of 2.00 yuan per 10 shares, with a dividend payout ratio of 32% and a dividend yield of 1.60% [5]. Project Performance - The new tax-free and taxable projects have been a drag on the company's performance, with losses estimated at around 450 million yuan in 2023 [6][7]. - The company opened new stores, including one outlet and two shopping centers, but these new projects are still in the cultivation phase and have significantly impacted profitability [7][8]. Future Outlook - The report projects a gradual recovery in the consumption environment, but the new leasing standards and high rental costs for long-term leases will continue to exert pressure on profitability [1][8]. - The EPS estimates for 2024-2026 have been revised downwards to 0.74, 0.85, and 1.00 yuan, respectively, reflecting the anticipated ongoing losses from new projects [1][8].