SBGCL(SH:600827) Guotai Junan Securities·2024-05-05 02:02Investment Rating - The report maintains a "Buy" rating for Bailian Group (600827) with a target price of 10.51 CNY, reflecting a positive outlook on the company's performance [16][18]. Core Views - The company is expected to achieve a revenue of 31.83 billion CNY in 2024, with a projected growth rate of 4% compared to the previous year [16]. - The report highlights that the company's performance aligns with expectations, and it emphasizes the structural advantages of the outlet business while exploring new business increments [16][18]. - The report notes a decline in revenue from department stores and shopping centers, while the outlet segment shows relatively better performance [16]. Financial Summary - For Q1 2024, the company reported a revenue of 8.83 billion CNY, a year-on-year decrease of 6.99%, with a net profit attributable to shareholders of 193 million CNY, down 7.73% year-on-year [16]. - The projected net profit for 2024 is 861 million CNY, reflecting a growth of 27% compared to 2023 [16]. - The report indicates an improvement in operating profit margin, expected to reach 2.2% in 2024, compared to 1.8% in 2023 [16]. Valuation Metrics - The report suggests a price-to-earnings (PE) ratio of 37x for the company, which is in line with comparable companies in the industry [16]. - The company's net asset return rate is projected to improve to 3.6% in 2024, up from 2.2% in 2023 [16]. - The report also highlights a significant increase in the dividend payout ratio, indicating a positive outlook on cash flow management [16].