Event: according to the company's quarterly report in 2023, the company achieved operating income of 7.933 billion yuan in the first three quarters of 2023, an increase of 9.62% over the same period last year; net profit of 1.373 billion yuan, up 11.31% over the same period last year; and net profit of 1.283 billion yuan, an increase of 13.33% over the same period last year. From a quarterly point of view, 2023Q3 achieved operating income of 2.998 billion yuan, an increase of 7.37% over the same period last year, an increase of 8.7% over 2023Q2; net profit of 543 million yuan, an increase of 6.53% over the same period last year, and an increase of 23.1% over the same period last year; net profit after deducting non-home net profit was 537 million yuan, an increase of 8.07% over the same period last year and 32.6% over the previous year.
The leading position is solid, and the revenue growth is better than the industry: in the first three quarters, the overall performance of the kitchen electricity market was stable. The retail sales of omni-channel range hood was 22.1 billion yuan, an increase of 4% over the same period last year, and the retail volume was 13.3 million units, which was basically the same as the same period last year. The retail sales of gas stoves were 12.4 billion yuan, up 1% from the same period last year, and the retail volume was 21.51 million units, down 4% from the same period last year. As the leader of kitchen electricity, the company achieved a year-on-year increase of 9.62% in revenue in the first three quarters, of which Q3 revenue increased by 7.37%, outperforming the industry and showing leading advantages. In terms of category expansion, the company's offline integrated cooker / dishwasher retail market share was 29% and 17% respectively in the first three quarters of 2023, the growth of new categories accelerated and the brand competitiveness improved in many dimensions.
The gross profit margin improved significantly and continued to improve quality and efficiency: in the first three quarters of 2023, the company's gross profit margin was 52.03%, compared with the same period last year. The overall gross profit margin of household appliances, kitchen and sanitary products of Q3 company was 52.19%, which was basically the same as that of the same period last year. The month-on-month growth of 2.51pct is expected to benefit from the downward movement of the raw material price center and the optimization of product structure. The 2023Q3 sales / management / R & D rate is 25.98% / 4.10% / 3.57%, with year-on-year changes + 2.99/-0.38/-0.68pct and month-on-month changes + 1.04pm + 0.01 /-0.20pctjue Q3 sales fee rate is expected to be related to the company's multi-dimensional marketing layout around the Hangzhou Asian Games and online channels such as Douyin.
Digital kitchen electricity strategy, layout "cooking ecology" full link: at the technical level, the company strives to open up the whole cooking link and build a digital ecology around cooking before, during and after cooking; advocate "thousands of people with thousands of noodles", and constantly optimize and upgrade the AI cooking assistant "Mr. ROKI" to meet individual needs. On October 24, SUNING held a strategic communication meeting with his boss, taking "double 11" as an opportunity to add digital kitchen power supply and intelligent layout to continue the company's growth.
Investment suggestion: as the leader of the kitchen and electricity industry, the company continues to show the advantages of traditional tobacco stove brands and channels, and its market share is steadily rising. The penetration of new categories such as integrated stoves and dishwashers actively expanded by the company still has room to improve, creating a new driving force for the steady growth of the company's performance. From 2023 to 2025, we expect the company to achieve a parent net profit of 1.808, 19.69 and 2.77 billion, respectively, with an EPS of 1.91, 2.07 and 2.40 yuan per share, respectively, and a corresponding PE of 12-11-10, maintaining a "recommended" rating.
Risk tips: the risk that real estate sales are not as expected to affect the company's business; the risk of raw material price fluctuations; the risk of intensified market competition.