King's Luck(SH:603369) Huaan Securities·2024-05-06 13:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company is on a high-quality development path towards achieving a revenue target of 10 billion yuan, with significant growth in its core products, particularly V3 and淡雅, which are expected to see growth rates exceeding 50% [2][3] - The company has successfully penetrated the Jiangsu market, particularly in the Suzhong and Sunan regions, and is actively expanding into mid-range and next-high-end price segments to capture market share from competitors [3] Financial Performance Summary - For Q1 2024, the company reported total revenue of 4.671 billion yuan, a year-on-year increase of 22.82%, with a net profit attributable to the parent company of 1.533 billion yuan, up 22.12% [2] - In 2023, the company achieved total revenue of 10.1 billion yuan, representing a 28.05% increase, and a net profit of 3.136 billion yuan, up 25.30% [2] - The company’s gross margin for 2023 was 78.3%, with a slight increase in operating expenses leading to a net profit margin decrease of 0.68 percentage points [2][3] Revenue and Profit Forecast - The company forecasts total revenues of 12.409 billion yuan, 15.041 billion yuan, and 17.976 billion yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 22.9%, 21.2%, and 19.5% [3][4] - The net profit attributable to the parent company is expected to reach 3.821 billion yuan, 4.693 billion yuan, and 5.646 billion yuan for the same years, with growth rates of 21.9%, 22.8%, and 20.3% respectively [3][4] Market Position and Strategy - The company is actively developing sample markets outside its home province and is focusing on promoting its business model to prepare for the next phase of growth [3] - The company has reported a significant increase in market share within Jiangsu, with notable growth in the Huai'an, Nanjing, and Suzhong regions [2][3]