LBX(SH:603883) Haitong Securities·2024-06-02 06:31Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company reported a revenue of 22.44 billion yuan in 2023, an increase of 11.21% year-on-year, with a net profit attributable to the parent company of 929 million yuan, up 18.35% [6][8] - The company is experiencing continuous store expansion and improvement in profitability, with a gross margin of 35.2% in Q1 2024, an increase of 2.20 percentage points year-on-year [7][8] - The company is expected to benefit from the implementation of outpatient coordination policies, with 4,673 outpatient coordination stores as of Q1 2024 [7][8] Summary by Sections Financial Performance - In 2023, the company achieved a total revenue of 22.44 billion yuan, with a net profit of 929 million yuan [6][8] - Q4 2023 revenue was 6.40 billion yuan, showing a slight decrease of 0.05%, while net profit increased by 21.17% to 212 million yuan [6][8] - For Q1 2024, revenue was 5.54 billion yuan, up 1.81%, with a net profit of 321 million yuan, reflecting a growth of 10.27% [6][8] Business Segments - Retail business revenue reached 19.35 billion yuan in 2023, a year-on-year increase of 9.96%, while franchise and distribution business revenue grew by 19.62% to 2.93 billion yuan [7][8] - The revenue from traditional Chinese medicine increased by 18.19% to 1.66 billion yuan [7][8] Store Expansion - The total number of stores reached 14,109 by Q1 2024, with 9,470 direct-operated stores and 4,639 franchise stores [7][8] - The company plans to open 4,000, 5,000, and 6,000 new stores in 2024, 2025, and 2026, respectively [7][8] Profitability - The overall gross margin for 2023 was 32.55%, an increase of 0.67 percentage points year-on-year, while the net profit margin was 5.01%, up 0.17 percentage points [7][8] - The company is expected to see a net profit growth of 21.9%, 20.6%, and 19.8% for 2024, 2025, and 2026, respectively [7][8] Valuation - The company is valued at a price-to-earnings ratio (P/E) of 20-25 times for 2023, with a reasonable value range of 38.80 to 48.50 yuan per share [7][8]