Event: The company released its semi-annual report for 2023. In 2023H1, the company achieved operating income of 977 million yuan, a year-on-year decrease of 20.72%; realized net profit of 108 million yuan, a year-on-year decrease of 28.01%. Among them, 2023Q2's quarterly revenue was 559 million yuan, down 18.10% from the previous year; the net profit of Gimu was 82 million yuan, down 9.85% from the previous year.
Overall overseas pressure is under pressure, and domestic sales have been very effective in expanding customers. By product: Affected by inventory removal and declining demand in Europe and the US, 2023H1's wireless/wired vacuum cleaners achieved revenue of 515/251 million yuan, respectively, -28.63%/-38.07% over the same period. Furthermore, the future results of the company's investment in Xihe have been shown. 2023H1's energy storage business achieved revenue of 54 million yuan, accounting for nearly 6% of total revenue. Looking at each region: Export sales are under pressure, and domestic revenue has increased markedly. During the reporting period, the company actively developed customers in the domestic market. 2023H1's export/domestic sales revenue was 714./261 million yuan respectively, -30.20%/+25.82% year-on-year. In addition, the company has already mass-produced commercial grooming devices, pet hair trimmers, outdoor tool cordless leaf blowers, and fabric cleaners, and is expected to develop a second growth curve in the second half of the year.
The rate side has remained stable, and gross profit levels have picked up somewhat. 1) Gross profit margin: The company's gross margin for 2023H1/2023Q2 was 18.36%/19.44% respectively, year-on-year -0.94 pct/+0.76 pct. The stability of the company's gross margin was due to a combination of factors such as customer bargaining. 2) Rate side: The company's 2023H1 sales/management/R&D/finance rates were 0.47%/3.91%/3.53%/-2.69%, respectively. The previous year was -0.02pct/+0.52pct/+0.04pct/-0.48pct, and the expenditure was relatively stable. 3) Net interest rate: Comprehensive gross margin and rate side changes. The company's 2023H1/2023Q2 net interest rate was -1.11pct/+1.32pct to 11.08%/14.79%, respectively.
Profit forecasts and investment recommendations. We expect net profit to be 361/4.01/452 million yuan respectively in 2023-2025, an increase of 3.9%/11.2%/12.8%, maintaining the “increase in holdings” rating.
Risk warning: risk of raw material price fluctuations, new business development falling short of expectations, geopolitical risks.