LBX(SH:603883) Yong Xing Zheng Quan·2024-05-28 04:31Investment Rating - The investment rating for the company is "Buy" [6][14]. Core Views - The company's performance shows steady growth, highlighting operational resilience with a revenue of 22.437 billion yuan in 2023, a year-on-year increase of 11.21%, and a net profit of 0.929 billion yuan, up 18.35% [3]. - The company is actively enhancing its refined management capabilities, which is expected to improve profitability, with a gross margin of 32.55% in 2023, an increase of 0.67 percentage points year-on-year [3]. - The company is pushing for the qualification of outpatient coordination, aiming to benefit from policy dividends, with 4,673 outpatient coordination stores established by Q1 2024 [3]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 22.437 billion yuan, with a net profit of 0.929 billion yuan, and a non-recurring net profit of 0.844 billion yuan, reflecting year-on-year growth rates of 11.21%, 18.35%, and 14.68% respectively [3]. - For Q1 2024, the revenue was 5.539 billion yuan, with a net profit of 0.321 billion yuan, and a non-recurring net profit of 0.311 billion yuan, showing year-on-year growth rates of 1.81%, 10.27%, and 10.35% respectively [3]. Business Segments - In 2023, the retail and franchise businesses generated revenues of 19.349 billion yuan and 2.931 billion yuan, with year-on-year growth of 9.96% and 19.62% respectively [3]. - In Q1 2024, the retail and franchise businesses reported revenues of 4.683 billion yuan and 0.819 billion yuan, with year-on-year growth of 2.18% and 0.24% respectively [3]. Profitability and Management - The gross margin for 2023 was 32.55%, benefiting from product mix adjustments and an increase in the proportion of unified procurement sales, which reached 68.40% [3]. - The company has implemented various cost-reduction measures and expects further profitability improvements with the Torch Project, achieving a gross margin of 35.20% and a net margin of 6.61% in Q1 2024 [3]. Future Outlook - The company has adjusted its profit forecasts for 2024 and 2025, expecting net profits of 1.118 billion yuan and 1.354 billion yuan, with corresponding EPS of 1.91 yuan and 2.32 yuan [4]. - The projected P/E ratios for 2024, 2025, and 2026 are 18, 15, and 12 respectively, indicating a favorable valuation outlook [4].