Investment Rating - The report maintains a "Buy" rating for the company with a target price of HK$6.72, representing a potential upside of 20% from the current price of HK$5.60 [1][2][4]. Core Views - The company plans to divest its loss-making subsidiary KP Global, which is expected to positively impact profits in the short term [4][5]. - Following the divestiture, the company anticipates revenue and net profit growth of 9.0% and 24.8% year-on-year, reaching RMB 15.64 billion and RMB 1.29 billion, respectively, in 2024 [4][5]. - The report highlights improvements in inventory management and sales performance, with online revenue expected to grow by approximately 14% due to a low base effect [5][6]. Summary by Sections Financial Projections - Revenue for 2024 is projected at RMB 15.64 billion, with a slight decrease in estimates for 2024-2026 due to the impact of KP Global's divestiture [6][8]. - The company expects a net profit of RMB 1.29 billion in 2024, reflecting an 8.5% increase from previous estimates [6][8]. - Earnings per share (EPS) for 2024 is estimated at RMB 0.49, with subsequent years showing continued growth [7][8]. Market Performance - The company’s market capitalization is approximately US$1.89 billion, with a three-month average daily trading volume of US$8 million [2][4]. - The stock has a price-to-earnings (P/E) ratio of 10.6 for 2024, indicating a favorable valuation compared to peers [9][10]. Strategic Initiatives - The divestiture of KP Global is expected to streamline operations and enhance profitability, with a special dividend of US$151 million planned for shareholders [4][5]. - The company aims to expand its product offerings and improve store efficiency, with plans to open 180 new stores in 2024 [5][6].
拟剥离KP Global，短期有助于利润端