SPZP(SZ:300616) Changjiang Securities·2024-05-16 03:02Investment Rating - The report does not provide a clear investment rating [3][27]. Core Views - The company is focusing on cost reduction and efficiency improvement, with a slight increase in gross margin by 0.4 percentage points in 2023. The sales, management, R&D, and financial expense ratios have shown mixed results, with sales expenses decreasing by 1.6 percentage points [15]. - The company is optimizing its channel system with a "1+N+Z" model, aiming to enhance coverage and efficiency in both direct and franchise operations. By the end of 2023, the company had 2,005 franchise stores, with 463 new openings [16][22]. - The company is concentrating on its traditional strengths in customization and supporting products, with initiatives like "随心选" and "699套餐" to drive customer engagement and expand its supply chain advantages [17]. Summary by Sections Financial Performance - In 2023, the company achieved revenue of 4.9 billion and a net profit attributable to the parent company of 650 million, reflecting a year-on-year decline of 8% in revenue but a 40% increase in net profit [21]. - For Q4 2023, the revenue was 1.388 billion, with a net profit of 610 million, showing a decline of 11% in revenue [21][19]. - In Q1 2024, the company reported revenue of 776 million, with a net loss of 870 million, indicating a 4% decline in revenue [21]. Business Strategy - The company is restructuring its direct sales model to franchise operations, which has led to a significant reduction in the number of direct stores. The focus is on enhancing the franchise model to leverage local resources [22]. - The company is also narrowing its self-operated business to specific regions while maintaining strong collaboration with franchisees [22]. Future Outlook - The company aims to achieve net profits of 810 million and 1.2 billion in 2024 and 2025, respectively, with corresponding price-to-earnings ratios of 38 and 26 times [17].