Light commercial refrigeration leader, Q3 performance exceeded expectations. As a leading enterprise deeply involved in light commercial refrigeration, the company formed a product matrix centered on commercial refrigeration displays, commercial refrigeration display cases, supermarket display cases, and commercial intelligent vending machines, and established stable cooperative relationships with other well-known domestic and foreign companies such as Unilever, Mengniu, Yili, and Nestle.
23Q1-3 achieved revenue of 2.50 billion yuan, +7.8% year over year; net profit to mother of 356 million yuan, +32.6% year over year; deducted non-net profit of 350 million yuan, +36.1% year over year. Among them, Q3 achieved revenue of 490 million yuan in a single quarter, +14.8% year on year; realized net profit of 90 million yuan, +29.1% year over year, after deducting non-net profit of 80 million yuan, +33.7% year over year. High growth in export sales led to a month-on-month increase in revenue and profit growth.
High growth in export sales supports growth. Flexible production+product improvement establishes medium- to long-term competitive advantage. High export growth is expected to continue, and domestic sales are still waiting for the boom to pick up. According to Industry Online, the freezer industry's export sales volume was +39.9% and +48.9%, respectively, in October and November '23, respectively. It is expected that the company will still benefit from the export boom in Q4. In terms of domestic sales, freezer sales in October and November '23 were -4.2% and -5.4% respectively, mainly due to weak demand and a high base for the same period last year.
Flexible production+perfect product matrix to support medium- to long-term growth. In '23, the company's domestic refrigerator and overseas freezer expansion went relatively smoothly. Combined with individual customer disturbances, the impact of dissipated, and a positive operating trend was established. Looking ahead to the future market, the customized needs of B-side commercial freezer customers have certain requirements for supplier production capacity and production capacity. The company's advantages in flexible supply chains and product diversification have been fully recognized and verified by major customers, and the global share of the company's products is expected to continue to increase.
Investment advice
Revenue for 23-25 is estimated to be 32.57, 37.63, and 4.322 billion yuan, respectively, with corresponding growth rates of 12.1%, 15.6%, and 14.8%, respectively, and net profit to mother of 4.02, 4.87, and 572 million yuan, respectively. The corresponding growth rates are 37.7%, 21.1%, and 17.4%, corresponding to PE 11.97, 9.88, and 8.42x, respectively. First coverage, giving a “buy” rating.
Risk warning
Product development fell short of expectations, raw material prices fluctuated greatly, and exchange rates fluctuated greatly.