Customer destocking is a drag on Q2 performance, and the expansion of new business and new track is accelerated. 2023H1 achieves revenue of 980 million yuan (- 20.7%), net profit of 110 million yuan (- 28.0%) and non-return net profit of 100 million yuan (- 30.1%). From the perspective of Q2 alone, the company achieved revenue of 560 million yuan (- 18.1%), net profit of 80 million yuan (- 9.8%) and non-return net profit of 80 million yuan (- 14.0%). Under the pressure of customer inventory performance, we downgrade our profit forecast for 2023-2025. It is estimated that the company's net profit in 2023-2025 will be 2.8 million yuan (the original value in 2023-2025 is 3.9 billion yuan), corresponding to 0.5 EPS and 0.60.7 yuan, and the current stock price will be 24.5 PE 20.7pm 17.6 times, considering that the company continues to expand new categories. Keep the "buy" rating unchanged.
2023H1 home storage business began to contribute income increment, commercial beauty meter, floor washer business accelerated expansion sub-products, 2023H1 wireless lithium vacuum cleaner revenue 510 million (- 28.6%), gross profit margin 17.6% (- 1.4pct); 2023H1 wired vacuum cleaner revenue 250 million (- 38.1%), gross profit margin 19.1% (- 0.8%) 2023H1 motor revenue 10.11 million (- 28.9%), gross profit margin 25.6% (+ 13.1pct); 2023H1 floor sweeper revenue 49.6 million (+ 297.9%), gross profit margin 17.3% (- 1.8pct); new energy storage products income 54.19 million yuan, gross profit margin 5.8%. From a regional point of view, 2023H1's overseas income is 710 million (- 30.2%), gross profit margin is 18.7% (- 0.3pct); 2023H1 domestic income is 260 million (+ 25.8%), gross profit margin is 16.9% (- 3.3pct). With the steady expansion of new business and new track, in terms of household storage, the company invests in Xi and jointly develops new products in the future, and its wholly-owned subsidiary Jineng Technology becomes its exclusive manufacturer. The layout of the production line was completed at the beginning of 2023, and the first order was shipped in February, and the contribution to the company's revenue in the second half of the year is expected to be more obvious; in terms of commercial beauty instruments, the project has been formally introduced into mass production.
Some related components of the beauty instrument have been introduced into local production, and the localization work continues to be promoted; in terms of floor washing machines, the second generation floor washing machine products Q series and V series cooperated with Fangtai have been successfully produced and delivered, and upgraded products will be launched in the second half of the year. Pet physical wool, outdoor tools wireless leaf blowing machine, cloth cleaning machine have been mass production.
Driven by 2023H1 gross profit margin, profitability increases steadily.
2023Q2 gross profit margin is 19.4% (+ 0.8pct), period expense rate is 1.8% (+ 0pct), of which the sales / management / R & D / financial expense rate is 0.4%, 4.0%, 3.4%, 6.0%, and + 0/+0.5/+0.6/-1.2pct, respectively. Under the combined impact, the 2023Q2 net profit rate is 14.8% (+ 1.3pct), deducting the non-net interest rate is 13.5% (+ 0.6pct).
Risk tips: demand is lower than expected; raw material price risk; domestic floor washing machine business development is not as expected.