Gelonghui, May 16 丨 Dongfang Weifang Securities Research Report pointed out that recently, Lai Yifen (603777.SH) published the 2022 report and the first quarterly report of 2023, and its performance increased steadily. The company actively implements a franchise system, and also reduces expenses during the store period through direct management to join. With the development of the omni-channel layout, franchise wholesale revenue and special channel business grew rapidly; the e-commerce business had optimized its product structure, and the scale of the business declined slightly. Furthermore, the company's profit margin is relatively stable, and the sales expenses ratio has declined significantly. With the end of the epidemic and consumption picking up, the company was able to successfully develop franchisees and give full play to the advantages of an integrated omni-channel platform. The bank expects to achieve operating income of 46.53/50.25/5.320 billion yuan in 2023-2025, respectively, and net profit of 0.92/1.14/124 million yuan respectively. The corresponding EPS is 0.27/0.34/0.37 yuan/share, respectively, and the corresponding PE is 60/48/44 respectively. The first coverage gave an “increase in holdings” rating.