The company released its 2023 annual results report
The 23Q4 company's revenue was 1,095 million yuan, up 2.9%; net profit to mother was 128 million yuan, up 14.0%; net profit after deducting non-return to mother was 109 million yuan, up 14.2%;
In '23, the company's revenue was 3.642 billion yuan, up 2.5%; net profit to mother was 294 million yuan, up 6.3%; net profit after deducting non-return to mother was 218 million yuan, an increase of 14.1%.
Steady progress in the home community, multi-channel+category collaboration
1) Retail: 23Q1-3's revenue was 1.39 billion yuan, an increase of 3.1%; the company's platform office actively enabled retail, and the channel sank faster. By the end of 23Q3, gold medal kitchen cabinets/closets/wooden doors/balcony bathrooms had a net increase of 39 homes, 101 homes, 105 homes, and 22 stores, respectively, compared to the end of '22. Furthermore, the company attaches importance to front-end channel development to fully empower dealers. We expect the contribution of new categories and channels to continue to increase, and we expect steady growth over 24 years.
2) Bulk: 23Q1-3 revenue was 870 million, -3.7% year-on-year; the company strengthened risk management and increased cooperation with high-quality customers, and we expect to maintain steady development for 24 years.
3) Overseas: 23Q1-3's revenue was 200 million, an increase of 19.5%; the company uses a differentiated strategy to explore the North American, Australian and Southeast Asian markets, and plans to invest no more than 700 million dollars to establish a production base in Thailand. On the one hand, the existing factory in Thailand (North Korea) can no longer meet the needs of overseas markets such as Southeast Asia. On the other hand, plant leasing increases operating costs and affects the company's investment decisions for intelligent equipment. We believe that building our own base in Thailand can effectively reduce personnel dependency and operating costs. We expect overseas growth to continue in 24 years.
Deepening supply chain management, achieving remarkable results in cost reduction and efficiency
The company has deepened technological innovation and cost leading strategies, raised the level of intelligent and flexible manufacturing, and the results of cost reduction and efficiency measures are increasingly showing; in addition, it continues to improve supply chain management efficiency, and raw material procurement costs have declined. 23Q4's net profit margin was 11.7%, +1pct year on year. Benefiting from inventory optimization and improved supplier procurement management efficiency, operating cash flow of 619 million yuan in 23 years (up 150.7% from the same period).
Adjust profit forecasts to maintain “buy” ratings
The company is engaged in overall services such as R&D, design, production, sales, installation and after-sales of customized home furnishings. It has a high user reputation and brand reputation, and is steadily expanding in multiple channels and categories. According to the company's performance report, we adjusted our profit forecast for 23. We expect the company's net profit to mother for 23-25 to be 294/3.53/416 million yuan, respectively (previous value was 3.09/361, 416 million yuan), and the corresponding PE is 10/8/7X, respectively.
Risk warning: Real estate data is weakening, domestic demand recovery falls short of expectations, overseas base construction is difficult, raw material prices are rising, etc.; the performance report is only a preliminary estimate. The specific data is subject to the company's official announcement.