Event: 23H1 achieved operating income of 2.88 billion yuan, + 2.72% year-on-year; net profit of 260 million yuan, + 8.12%; and non-return net profit of 250 million yuan, + 7.51% of the same period last year. Among them, 23Q2 achieved operating income of 1.68 billion yuan, + 0.36% year-on-year; net profit of 170 million yuan, + 4.32%; and non-return net profit of 160 million yuan, + 6.55% of the same period last year.
Comments:
In the first half of the year, the overall domestic kitchen electricity market picked up steadily, and the growth of rigid demand for kitchen and electrical products recovered steadily. According to the total data of Oviyun.com, the total retail sales of 23H1 domestic tobacco and stove categories totaled 23.15 billion yuan, which was + 2.5% higher than the same period last year. The operating income of 23H1 is + 2.7% compared with the same period last year, and the growth trend is basically the same as that of the industry. Further split: on the channel side, 23H1 generated revenue of RMB 1.31 billion, 10.5 trillion, and yoy+9.0%/+19.6%/-8.0%/-38.9% respectively from offline / online / engineering / overseas channels. On the product side, 23H1's cigarette machine / stove / water heater / dishwasher / steaming and roasting integrated machine / integrated cooker earned 11.3 billion yuan respectively. In the yoy+14.6%/-1.6%/-8.5%/-5.2%/-4.5%; integrated category, the integrated cooker earned 44.68 million yuan, and the yoy+29.3%, new product integrated cooking center earned 18.72 million yuan. In terms of profitability, the gross profit margin of 23H1 range hood / stove / water heater is respectively year-on-year-1.4/+1.0/-2.2pcts to 44.1% 1.4/+1.0/-2.2pcts 46.6% 34.0%.
The net interest rate of return to the mother is stable, accelerating the layout of sinking channels. The company's 23Q2 gross profit margin was-1.1pct to 42.6% year-on-year. On the expense side, the company's 23Q2 sales / management / R & D / financial expense rates are 24.0%, 3.7%, 3.5%, 0.3%, respectively, compared with the same period last year, and the cost delivery is basically stable. In addition, the company's 23H1 set aside 18.89 million yuan for asset impairment, which is a drag on profit margins. In the end, the company's 23Q2 achieved a net interest rate of 10.0%, a year-on-year + 0.4pct. In the first half of the year, the company actively invested in channel construction and brand image building, led to an increase in the proportion of high-end categories in online channels, Douyin global marketing also achieved a new breakthrough, with the operation of new retail channels to improve efficiency, the company is expected to optimize profitability in the medium and long term.
Investment suggestion: the company seizes the high-end opportunity of the kitchen and electricity industry to actively improve its product structure, pays attention to the upgrading of brand image and channel management ability, and the sinking channel continues to push new products to form competitiveness. New products such as integrated cooker and integrated cooking center track enrich product matrix. We are optimistic that the company will practice its internal skills in the process of straightening out channels and strengthening governance, continue to explore growth potential in multi-category and multi-brand matrix, and achieve higher quality profits in the process of channel flattening, high-end products and intelligent production. It is estimated that the 23-25 net profit from homing will be 475 euro 571x672 million (the previous value is 5.5x71x780m, due to the lacklustre performance of 23H1), and the "buy" rating will be maintained for 23-25 10.6x/8.8x/7.5x.
Risk tips: the risk of rising prices of raw materials; the risk of fluctuations in the real estate market; the risk of intensified market competition; the risk that the demand for new products is less than expected.