LFX(SH:600612) Haitong Securities·2024-05-17 01:32Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2]. Core Views - The report highlights that the company achieved a revenue of 71.436 billion yuan in 2023, representing a year-on-year growth of 13.37%. The net profit attributable to shareholders was 2.214 billion yuan, up 30.23% year-on-year [6][8]. - The company plans to achieve a revenue target of 75.007 billion yuan in 2024, which would be a 5% increase compared to 2023 [6]. - The report emphasizes the company's strong brand power and stable expansion through a wholesale (franchise) model, which contributes to a high return on equity (ROE) consistently above 20% [7]. Summary by Sections Financial Performance - In 2023, the company exceeded its operational targets, achieving a revenue and net profit that were 7% and 23% above expectations, respectively [7]. - The diluted EPS for 2023 was 4.23 yuan, with a weighted average ROE of 20.53% [6][9]. - The first quarter of 2024 saw a revenue of 25.630 billion yuan, a 4.36% increase year-on-year, and a net profit of 8.02 billion yuan, up 12% year-on-year [11]. Revenue Breakdown - In 2023, revenue from jewelry increased by 15.44% to 58.136 billion yuan, while gold trading revenue grew by 5.53% to 12.750 billion yuan [10]. - The gross margin for jewelry increased by 0.71 percentage points to 9.84% [10]. Future Outlook - The company aims to open at least 300 new retail stores in 2024, focusing on expanding its presence in the Northeast and enhancing sales in Southern and Southwestern regions [7]. - The report projects that the company's net profit will reach 2.546 billion yuan in 2024, reflecting a 15% year-on-year growth [9][11]. Valuation - The report assigns a valuation range of 16-20 times PE for 2024, corresponding to a market capitalization range of 40.7 billion to 50.9 billion yuan, with a reasonable value range of 77.88 to 97.35 yuan per share [11].