Juewei Food (603517) 国海证券·2024-05-05 02:00Investment Rating - The report maintains a "Buy" rating for the company [2][10][23] Core Views - The company is shifting its focus from expanding market share to optimizing store operations and franchise management, aiming for sustainable growth through targeted support systems for franchise partners [2] - Revenue growth is expected to slow down due to a decrease in store expansion speed, but continuous cost optimization is projected to enhance profitability [2] - The company’s revenue forecasts for 2024-2026 are estimated at 76.11 billion, 80.73 billion, and 86.20 billion yuan, representing year-on-year growth of 5%, 6%, and 7% respectively [2] - The expected net profit attributable to the parent company for the same period is projected to be 6.84 billion, 7.93 billion, and 9.04 billion yuan, with year-on-year growth rates of 99%, 16%, and 14% respectively [2] Financial Summary - In 2023, the company achieved a revenue of 72.61 billion yuan, a year-on-year increase of 9.64%, and a net profit of 3.44 billion yuan, up 46.63% year-on-year [23] - The first quarter of 2024 saw a revenue of 16.95 billion yuan, down 7.04% year-on-year, but net profit increased by 20.02% to 1.65 billion yuan [23] - The company’s gross margin for 2023 was 24.77%, with a gradual improvement observed in the second half of the year [23] - The report projects earnings per share (EPS) of 1.10, 1.28, and 1.46 yuan for 2024, 2025, and 2026 respectively, with corresponding price-to-earnings (P/E) ratios of 18, 16, and 14 times [2][27]