Monalisa(SZ:002918) Huachuang Securities·2024-05-17 10:32Investment Rating - The report maintains a "Recommend" rating for the company with a target price of 13.29 CNY, compared to the current price of 11.70 CNY [1]. Core Insights - The company reported a revenue of 5.92 billion CNY in 2023, a decrease of 4.9% year-on-year, while achieving a net profit of 266 million CNY, marking a turnaround from losses [1][13]. - In Q1 2024, the company generated revenue of 820 million CNY, down 25.7% year-on-year, but net profit increased by 39.6% to 10 million CNY [1][13]. - The company is focusing on expanding its distribution channels, particularly in the home decoration and new retail sectors, which are expected to contribute to revenue growth [1][13]. Financial Summary - Total revenue is projected to decline to 5.53 billion CNY in 2024, followed by a recovery to 5.86 billion CNY in 2025 and 6.23 billion CNY in 2026, with respective growth rates of -6.6%, 6.0%, and 6.2% [3][19]. - The net profit is expected to rise significantly, reaching 424 million CNY in 2024, 468 million CNY in 2025, and 566 million CNY in 2026, with growth rates of 59.4%, 10.2%, and 21.1% respectively [3][19]. - The earnings per share (EPS) is forecasted to increase from 0.64 CNY in 2023 to 1.02 CNY in 2024, 1.13 CNY in 2025, and 1.36 CNY in 2026 [3][19]. - The company’s price-to-earnings (P/E) ratio is projected to decrease from 18 in 2023 to 11 in 2024, 10 in 2025, and 9 in 2026 [3][19].