Keshun(SZ:300737) Guoxin Securities·2024-05-09 02:00Investment Rating - The investment rating for the company is "Buy" [8][48]. Core Views - The company reported a slight revenue growth of 3.7% year-on-year in 2023, achieving a revenue of 7.94 billion yuan, but faced a net loss attributable to shareholders of 338 million yuan, primarily due to significant credit impairment losses [21][48]. - The company is expected to improve its profitability as it has released some of the impairment risks, and with ongoing cost control measures, profitability is anticipated to recover [48]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 7.94 billion yuan, with a year-on-year increase of 3.7%. However, the net profit attributable to shareholders was -338 million yuan, a significant decline from the previous year's profit of 178 million yuan [21][48]. - The first quarter of 2024 saw a revenue of 1.49 billion yuan, down 20.4% year-on-year, with a net profit of 53 million yuan, a decrease of 9.2% [21][48]. Profitability Metrics - The gross margin for the company in 2023 was 21.2%, remaining stable year-on-year, while the operating expense ratio increased slightly to 16.9% [28][31]. - The company reported a net margin of 3.4% in Q1 2024, an improvement of 2.2 percentage points year-on-year [31]. Cash Flow and Balance Sheet - The net cash flow from operating activities for 2023 was 190 million yuan, a decrease of 18.5% year-on-year. In Q1 2024, the company experienced a net cash outflow of 980 million yuan [45][51]. - As of the end of 2023, the total accounts receivable and other receivables amounted to 4.99 billion yuan, a decrease of 580 million yuan year-on-year [45]. Earnings Forecast - The earnings per share (EPS) forecast for 2024-2026 is projected to be 0.26, 0.34, and 0.41 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 17.7, 13.7, and 11.3 times [48].