23Q3 revenue was 167 million yuan, down 26.5% from the same period, and net profit was $08 million.
The company's 23Q1-3 revenue was 887 million yuan, a decrease of 20.0%; 23Q1/Q2/Q3 revenue and year-on-year growth rate of 351 million (yoy -9.4%) /369 million (yoy -25.4%) /167 million (yoy -26.5%); 23Q1-3 net profit of 34 million, same decrease of 37.5%; 23Q1/Q2/Q3 net profit and year-on-year growth rate of 23 million (yoy +25.9%) /0.19 billion (yoy -58.0%)/-0.08 million (yoy+) 16.3%); Among them, the year-on-year changes in 23Q1-3 were mainly due to a decrease in total profit.
23Q1-3 deducted non-return net profit of $53 million, a decrease of 49.3%; 23Q1/Q2/Q3 deducted non-return net profit of $19 million/035 million/-01 billion (yoy -103.24%), respectively; 23Q1-3 non-recurring profit and loss of $19 million, an increase of 62.0%, mainly investment income obtained from disposal of foreign exchange forward contracts.
The gross profit margin of 23Q1-3 increased by 26.4% by 6.3 pct, net profit margin of 3.3% decreased by 1.4pct23q1-3, sales expense ratio of 10.1%, same increase of 4.6 pct, mainly due to the increase in advertising fees and platform commissions for overseas operations teams; management expense ratio (including R&D expenses) 11.5%, same increase of 3.9 pct, mainly due to increased consulting fees; financial cost ratio -2.3%, same increase of 1.3 pct, mainly due to exchange rate changes and RMB depreciation. In addition, net cash flow from 23Q1-3 operating activities also increased by 47.5%, mainly due to improved inventory management capability/accounts receivable management capabilities.
The share of leading customers has gradually increased, and the sales of leading customers of independent brands entering the European and American markets are relatively stable, such as Walmart, Costco, Carrefour, JJA, etc. In recent years, the company's high-quality customers with annual sales of more than one million US dollars have increased markedly. The company's production capacity will give priority to meeting these leading customers with large volumes and concentrated orders. The share of some customers with customized requirements and small order volumes is gradually decreasing. Judging from market potential, sales growth potential in North America is relatively large.
23H1's revenue accounts for more than 50% of sales in North America, and about 30% of sales in Europe.
The company vigorously develops cross-border e-commerce business. Products related to independent brands are sold in the US and Europe through e-commerce platforms such as Amazon and Wayfair, further expanding the company's influence in overseas markets. The company uses digitalization, new media, and consumer leadership to gradually promote and promote its own brands. At the same time, the company is also actively negotiating with some offline dealers to promote the share of independent brands in offline channels in order to increase the popularity of independent brands.
Digital intelligence construction has been very effective, and differentiated pricing stabilizes gross profit
The company attaches importance to the intelligent and digital construction of production lines. In line with production expansion requirements, the company has continued to invest about 300 million yuan in construction capital in recent years. Furthermore, while increasing R&D investment, the company has also formed overseas patent protection for core products such as the Starry Sky Canopy to ensure the company's continued competitive advantage. Overseas popularity has increased markedly, which is a favorable guarantee for the company's market development.
The gross margin of the company's products is greatly affected by market competition, the US dollar exchange rate, and commodity raw materials. Steel and aluminum account for more than 50% of the cost. The company uses cost addition in combination with market competition for targeted product pricing. For example, products with a relatively monopoly position in the industry, such as Starry Sky Canopy, are priced relatively high; products with large quantities and good order continuity are priced relatively low; in addition, the gross margin of small customers will be slightly higher than that of large customers.
Adjust the profit forecast and give it an “increase in holdings” rating
The company has implemented an explosive product strategy. On the basis of consolidating product leadership in sunshade products, the company will expand product categories appropriately to ensure the sustainable growth of the company's operating income. It is also complemented by an explosive product strategy to occupy product highlands in R&D and lean manufacturing, attract orders with reasonable pricing, and strive for product leadership, cost leadership, and brand autonomy, thus guaranteeing the company's reasonable profit margins. Taking into account the company's performance (23Q1-3, the company's revenue decreased by 20.0%, and the same decrease of 37.5% with the previous income), we adjusted our profit forecast. The company's net profit for 23-25 is estimated to be 0.40/1.11/135 million yuan (previous value is 1.01/1.23/151 million yuan respectively), EPS is 0.37/1.01/1.23 yuan/share, and corresponding PE is 78/28/23x, respectively.