LBX(SH:603883) Donghai Securities·2024-05-07 13:30Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company's overall performance is stable, with notable profit growth. In 2023, the company achieved a revenue of 22.437 billion yuan and a net profit attributable to shareholders of 929 million yuan, representing year-on-year growth of 11.2% and 18.4% respectively [9] - The company is focusing on advantageous regions and accelerating its penetration into lower-tier markets, with a total of 14,109 stores as of Q1 2024, including 9,470 direct-operated and 4,639 franchised stores [9] - The company is actively promoting the implementation of integrated management, which has significantly improved sales in stores included in the management system [10] - The company has adjusted its profit forecasts for 2024 and 2025 due to uncertainties related to the implementation of integrated management policies, while introducing profit forecasts for 2026 [9] Summary by Sections Financial Performance - In 2023, the company reported a revenue of 22.437 billion yuan and a net profit of 929 million yuan, with respective year-on-year growth rates of 11.2% and 18.4% [9] - For Q1 2024, the company achieved a revenue of 5.539 billion yuan and a net profit of 321 million yuan, with year-on-year increases of 1.8% and 10.3% [9] - The company expects net profits for 2024, 2025, and 2026 to be 1.103 billion yuan, 1.339 billion yuan, and 1.638 billion yuan respectively, with corresponding EPS of 1.89, 2.29, and 2.80 yuan [9][11] Market Expansion - The company has accelerated the opening of new stores, with 3,388 new stores added in 2023 and 642 in Q1 2024 [9] - The number of franchised stores increased significantly, with a growth rate exceeding 50% in 2023 [9] - The company is leveraging digitalization to enhance the efficiency of new store openings, reducing the average preparation time for new direct-operated stores to 40 days [9] Strategic Initiatives - The company has integrated 4,673 stores into its management system, with nearly 40% being direct-operated stores [10] - The number of stores eligible for mutual billing under the integrated management system reached 3,338, accounting for 24% of total stores [10] - The company anticipates accelerated growth in its franchising and alliance business in 2024, with alliance business revenue expected to exceed 240 million yuan in 2023 [9]