This report is read as follows:
Integrated cooker business growth short-term pressure, gross profit margin continued to improve, e-commerce growth space opened, Q2 performance in line with expectations, increased holdings.
Main points of investment:
Investment suggestions: the company's offline channels are upgraded, the organizational structure of e-commerce is optimized, and the action is active, and the sales end is expected to be repaired later. The price of raw materials has fallen, the proportion of high-end models has increased, and the gross profit margin and gross sales margin have improved. We maintain the profit forecast and estimate that the EPS for 2023-2025 will be 1.44 PE 1.71 PE, with a growth rate of + 24% 19% and 18%. With reference to comparable companies in the same industry, and considering the active layout of the second generation of the company in the channel side, the results are expected to be highlighted in 2023. The company will be given a target price of 20.75 yuan in 2023, maintaining a "holding increase" rating.
Q2 performance meets expectations: 2023H1 revenue of 454 million yuan (- 0.95%), net profit of 114 million yuan (+ 9.72%), net profit of 103 million yuan (+ 10.11%), revenue of 279 million yuan (year-on-year + 4.47%), net profit of 74 million yuan (+ 11.65%) and net profit of 68.61 million yuan (+ 11.50%).
The growth rate of integrated stove business is under pressure, and the growth rate of cabinet supporting business is faster. Q2 revenue is positive compared with the same period last year, and the margin has improved, which is expected to be mainly contributed by the cabinet supporting business. In the first half of 2023, the income from the integrated cooker business was 402 million yuan,-5.37% compared with the same period last year; the income from the wooden cabinet business was 18.21 million yuan, + 133.66% from the same period last year; and the income from other kitchen supplies business was 27.83 million yuan, + 91.14% from the same period last year.
Q2 gross profit margin continued to improve, gross sales margin increased significantly. Q2 gross profit margin is 48.04%, month-on-month + 0.34pct. It is expected that the correction in the price of bulk raw materials will be gradually transmitted to the products being sold by the company and the increase in the proportion of revenue from high-end steaming and baking independent products is an important reason for the improvement of the company's gross profit margin.
Q2 gross sales difference of 44.28%, month-on-month improvement in 3.13pct, we expect to be mainly due to the improvement of the company's marketing launch conversion efficiency.
Risk hint: raw material price fluctuation risk, industry competition aggravates the risk.