Kouzijiao(603589) 东方证券·2024-05-13 11:32Investment Rating - The report maintains a "Buy" rating for the company with a target price of 62.89 CNY based on a reasonable valuation level of 19 times the earnings for 2024 [4][7]. Core Insights - The company reported a revenue of 5.96 billion CNY for 2023, representing a year-on-year increase of 16.1%, and a net profit attributable to the parent company of 1.72 billion CNY, up 11.0% year-on-year. For Q1 2024, revenue was 1.77 billion CNY, with a net profit of 590 million CNY, showing steady growth [1][2]. - The company is expected to maintain healthy growth in its product series, particularly in high-end products, which accounted for 97.1% of revenue in 2023, with a year-on-year increase in sales volume and price [1][2]. - The company is focusing on channel flattening in the domestic market to enhance competitiveness and is expanding its marketing efforts in key regions outside the province [1][2]. Financial Summary - The company’s financial performance shows a gross margin of 75.2% in 2023, with a slight increase in sales and management expense ratios due to stock incentive costs. The net profit margin was 28.9% [1][3]. - Revenue projections for 2024-2026 are adjusted to 6.8 billion CNY, 7.67 billion CNY, and 8.55 billion CNY respectively, with corresponding net profits of 1.99 billion CNY, 2.28 billion CNY, and 2.57 billion CNY [2][3]. - The earnings per share are forecasted to be 3.31 CNY, 3.80 CNY, and 4.28 CNY for 2024, 2025, and 2026 respectively [2][3].