Juewei Food (SH:603517) Shanxi Securities·2024-05-05 10:30Investment Rating - The report maintains an "Accumulate-A" investment rating for the company, indicating an expected price increase of 5%-15% relative to the benchmark index [2][27]. Core Insights - In 2023, the company achieved a revenue of 7.261 billion yuan, a year-on-year increase of 9.64%, and a net profit attributable to shareholders of 344 million yuan, up 46.63% year-on-year [2][15]. - The first quarter of 2024 saw a revenue of 1.695 billion yuan, a decrease of 7.04% year-on-year, but a net profit of 165 million yuan, reflecting a 20.02% increase year-on-year [11][15]. - The company is focusing on optimizing single-store operations and expects gradual recovery in single-store revenue against a low base [15]. Financial Performance - The gross profit margin for 2023 was 24.77%, with a net profit margin of 4.74%, showing improvements in profitability due to declining raw material costs [11][15]. - The gross profit margin for Q1 2024 improved to 30.03%, with a net profit margin of 9.73%, indicating a positive trend in profitability [11][15]. - The company forecasts revenues of 7.708 billion yuan, 8.205 billion yuan, and 8.969 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 722 million yuan, 812 million yuan, and 881 million yuan [15][16]. Market Position - The company has expanded its store count to 15,950 by the end of 2023, emphasizing quality improvements among new franchisees and proactive adjustments to underperforming stores [13][15]. - The company’s focus on enhancing sales through platforms like Douyin and group buying vouchers has been noted, despite facing revenue pressure from high base effects [11][15].