aiyingshi(SH:603214) Changjiang Securities·2024-05-06 01:02Investment Rating - The report maintains a "Buy" rating for the company [3][30]. Core Insights - In Q1 2024, the company is expected to achieve positive revenue growth due to improved single-store efficiency and growth in the milk powder category, with a revenue increase of 6.42% year-on-year [2][28]. - The company has made significant progress in dual-brand integration and refined operations, leading to an anticipated phase of quality improvement and efficiency enhancement from 2024 to 2026, with projected EPS of 0.86, 0.96, and 1.08 yuan respectively [3][15]. Summary by Sections Revenue and Growth - In Q1 2024, the company opened 4 new stores and closed 12, resulting in a net store closure but improved single-store efficiency. Store sales revenue grew by 3% year-on-year, while e-commerce revenue surged by 39.53% [2]. - The milk powder category saw a significant revenue increase of 16.54% year-on-year, while other categories experienced slower growth [2]. Financial Performance - The company reported total revenue of 8.06 billion yuan in Q1 2024, with a net profit attributable to the parent company of 0.06 billion yuan, reflecting a year-on-year increase of 135.29% [28]. - The overall gross margin decreased by 2.18 percentage points, primarily due to the faster growth of lower-margin milk powder products [29]. Operational Efficiency - The company has successfully optimized store operations, reducing rental costs and improving performance metrics, which contributed to a decrease in sales expense ratio by 2.93 percentage points [29]. - The dual-channel brand integration has shown significant results, with improved gross margins for acquired brands and enhanced operational efficiency [17].