Jinwu Financial News | China Merchants Securities released a research report that China Resources Vientiane Life (01209)'s 2023 performance grew by more than 30% year on year. Overall gross margin increased slightly, driven by a steady increase in profit margins in the commercial sector, and the overall profit margin level gradually increased due to scale effects.
The bank indicates that under comprehensive consideration, (1) as a commercial management leader, the company's “scale advantage” and “first-mover advantage” in commercial management help the company maintain quantitative and qualitative competitiveness in terms of external development, be optimistic about the company's medium- to long-term scale expansion capacity and continuous improvement in profit margin levels under scale effects, and parent company asset management transformation or further support the company's long-term continuous growth; (2) rich experience in comprehensive operation of various business formats at the company and group level helps the company to accelerate the layout of urban space services and further drive the company's brand power and resource integration capabilities; (3) In addition, sufficient monetary capital is available It gives the company more options for future development. I am optimistic about the certainty and stability of the company's future performance growth rate.
The bank predicts that the company's 24E/25E/26EEPS is 1.56/1.84/2.11 yuan/share (+21%/+18%/+15% year-on-year, respectively), and that the PE corresponding to the current stock price is 15.2/12.9/11.2, respectively. Referring to the predicted compound growth rate of 18% over the next three years, the company will be given a target price of 28.00 yuan/share (HK$30.89 per share) (corresponding to PE18x in 24), maintaining the “Highly Recommended” rating.