Event: when the company released its 2023 semi-annual report, 2023H1 achieved a total revenue of 1.523 billion yuan, + 6.3% compared with the same period last year, of which Q1/Q2 realized 826 million yuan, 19.9% and + 24.7% net profit, respectively, of which Q1/Q2 realized 0.24 million yuan and 136.1% respectively. 2023H1 realized deduction of non-return net profit of 102 million yuan,-18.1% compared with the same period last year, of which Q1/Q2 achieved 0.1 billion yuan, 44.3% compared with the same period last year.
The steady development of export, deep binding head customers. 2023H1 achieved export income of 1.39 billion yuan, accounting for 94.3% of the total income, which was basically the same as that in 2022, of which the US market accounted for 84.5% of the total income. The sales revenue of the top five customers of 2023H1 accounts for 73.8% of the total revenue, which is higher than that of 0.1pct at the end of 2022, of which the largest customer accounts for 52.9% of the total revenue, and compared with + 5.2pct at the end of 2022, the company continues to be deeply bound with its head customers.
Multiple channels to expand the domestic market, the domestic sales situation is expected to gradually open. The company actively distributes the domestic market and carries out channel expansion and brand promotion through the multi-level sales model of dealers, direct stores and e-commerce platform. make use of the identity of the supplier of the smart bed for the Beijing Winter Olympic and Paralympic Games to strengthen consumers' brand awareness of the "Shuford" smart bed. 2023H1, the company's "Shuford" direct stores are located in Beijing, Shanghai and Suzhou. By April 2023, the single store sales in Beijing have exceeded one million. At the same time, the company has opened 17 "Shuford" distribution stores in 13 urban areas across the country. With the gradual expansion of stores, the domestic sales situation is expected to gradually open.
It is proposed to issue convertible bonds to raise 1.515 billion yuan for capacity construction and domestic market expansion. In June 2023, the company disclosed the refinancing plan to issue convertible bonds to raise no more than 1.515 billion yuan, of which 1.12 billion yuan is intended for the intelligent bed supporting digital electrical system production project. After the completion of the project, the company can form 8 million sets of regulation system production capacity. 4 million sets / year production capacity of control system, 4 million sets / year production capacity of operating system, 1 million sets / year of sleep management intelligent system, 1 million sewing jackets / year The production scale of the intelligent bed supporting backrest capacity is 500,000 sheets / year, and the vertical integration of the supply chain is further strengthened. It is planned to invest 250 million yuan in the construction of the domestic market, and it is expected to add 2 flagship stores, 17 direct-run stores and 350 distribution stores nationwide.
The domestic market continues to invest, and the rate of sales expenses has increased. The sales / management / R & D / financial expense rate of 2023H1 Company is 13.6%, 9.9%, 4.8%, 3.6%, and + 3.9pct/-1.3pct/-0.3pct/+1.1pct, of which the single Q2 sales / management / R & D / financial expense rate is 12.4%, 10.4%, 4.5%, 9.2%, respectively, compared with the same period last year.
+ 1.9pct/-2.9pct/-0.8pct/+1.3pct, the increase in sales expense rate is mainly due to the company's expansion of the domestic market and the increase of marketing investment. 2023H1 realized an exchange gain of 52 million yuan.
Profitability has been steadily repaired. 2023H1's gross profit margin is 33.4%, year-on-year + 1.3pct, single Q2 gross profit margin is 31.5%, year-on-year + 2.4 pctbot 2023H1 net profit rate is 8%, year-on-year + 1.2pct, single Q2 net profit margin is 11.8%, year-on-year + 5.8pct.
Profit forecast and investment advice: we are optimistic that the company is deeply bound to major customers, and with the gradual recovery of orders, the basic market for export is expected to continue to grow; actively expand the domestic marketing network, superimpose brand effect, and promote the gradual opening of the domestic sales situation, we expect the company's 2023-2025 net profit to be 281pm, respectively, 297cm, and the current stock price corresponds to PE 1615x14X, giving a "recommended" rating.
Risk tips: the expansion of channels is not as expected; exchange rate fluctuations; industry competition intensifies.