Buydeem Group(SZ:300824) Southwest Securities·2024-05-06 10:00Investment Rating - The report maintains a "Hold" rating for the company [2][4]. Core Insights - The company reported Q1 2024 revenue of 160 million yuan, a year-on-year decrease of 6.5%, while net profit attributable to shareholders increased by 28.3% to 20 million yuan [2]. - The company's OEM and distribution business showed signs of recovery, with OEM revenue growing by 32.5% to 37.82 million yuan, while self-branded revenue declined by 14.4% to 120 million yuan [2]. - The overseas market has shown significant growth, with overseas revenue increasing by 28.2% to 11.72 million yuan, attributed to the improvement of overseas distribution channels [2][3]. Revenue and Profitability - The company's gross margin decreased by 2 percentage points to 49.7%, primarily due to the rising proportion of lower-margin OEM and distribution businesses [3]. - The company effectively controlled costs, with a sales expense ratio of 23.6%, down 3.3 percentage points year-on-year, and a net profit margin of 14.2%, up 3.8 percentage points [3]. Future Outlook - The company is expected to focus on improving dietary needs through its brand "BUYDEEM" and OEM/ODM services, with anticipated EPS of 0.28 yuan, 0.35 yuan, and 0.40 yuan for 2024-2026 [4]. - The report suggests that the ongoing channel reforms are likely to yield positive results in the future [4].