DSL(SH:603233) Guolian Securities·2024-05-07 09:30Investment Rating - The investment rating for the company is "Buy" (maintained) with a target price of 26.19 CNY, compared to the current price of 22.27 CNY [7]. Core Insights - The company reported a revenue of 24.531 billion CNY in 2023, representing a year-on-year growth of 15.45%. The net profit attributable to shareholders was 1.166 billion CNY, up 12.63% year-on-year [2]. - In Q1 2024, the company achieved a revenue of 6.752 billion CNY, a year-on-year increase of 13.54%, but the net profit attributable to shareholders decreased by 19.79% to 398 million CNY [2][3]. - The retail business generated 20.509 billion CNY in revenue in 2023, growing by 6.58%, while the franchise and distribution business saw a significant increase in revenue to 3.423 billion CNY, up 122.46% [3]. Financial Performance - The company has expanded its store count to 14,074 by the end of 2023, with 9,909 direct-operated stores and 4,165 franchise stores. In 2023, it opened 1,382 self-built stores, 2,158 franchise stores, and acquired 750 stores [4]. - Revenue projections for 2024-2026 are estimated at 29.275 billion CNY, 35.114 billion CNY, and 42.291 billion CNY, with corresponding growth rates of 19.34%, 19.94%, and 20.44% respectively [5]. - The net profit attributable to shareholders is forecasted to be 1.420 billion CNY, 1.746 billion CNY, and 2.096 billion CNY for 2024-2026, with growth rates of 21.75%, 22.94%, and 20.05% respectively [5]. Valuation Metrics - The company is valued at a P/E ratio of 21 times for 2024, with an estimated EPS of 1.25 CNY, which is projected to grow to 1.84 CNY by 2026 [5][6]. - The company's market capitalization is approximately 25.362 billion CNY, with a current P/B ratio of 3.8 and an EV/EBITDA of 9.3 [8].