WLY(SZ:000858) Huaan Securities·2024-05-06 11:00Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company is committed to reform and aims for steady progress, with a strong performance in 2023 and a positive outlook for 2024 [8] - The company reported a total revenue of 348.33 billion yuan in Q1 2024, representing an increase of 11.86% year-on-year, and a net profit attributable to shareholders of 140.45 billion yuan, up 11.98% [2] - The company plans to increase its dividend payout ratio to 60%, up by 5 percentage points year-on-year, enhancing returns for investors [2][8] Revenue Summary - In 2023, the company achieved a total revenue of 832.72 billion yuan, a year-on-year increase of 12.58%, and a net profit of 302.11 billion yuan, up 13.19% [2] - The growth in revenue is attributed to the performance of the 1618 and lower-end products, which contributed significantly to the overall revenue increase [3] - The company’s revenue structure is continuously optimized, with a 13.56% increase in the distribution channel and a 12.53% increase in direct sales in 2023 [3] Profitability Summary - The gross profit margin for Q4 2023 increased by 1.86 percentage points year-on-year, primarily due to changes in product structure [3] - The net profit margin for the full year of 2023 improved by 0.2 percentage points, indicating stable profitability [3] - For Q1 2024, the gross profit margin remained stable with a slight increase of 0.04 percentage points year-on-year [3] Financial Forecast - The company forecasts revenues of 923.80 billion yuan, 1,031.50 billion yuan, and 1,147.48 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 10.9%, 11.7%, and 11.2% [8] - The net profit attributable to shareholders is projected to be 338.90 billion yuan, 380.40 billion yuan, and 426.73 billion yuan for the same years, with a consistent growth rate of 12.2% [8] - The current stock price corresponds to price-to-earnings ratios of 17.75, 15.82, and 14.10 for 2024, 2025, and 2026, respectively [8]