On the evening of February 23, 2024, Jimi Technology released its 2023 performance report.
The company released its 2023 performance report. The company achieved annual revenue of 3.56 billion yuan, a year-on-year decrease of 15.7%, achieved net profit of 120 million yuan, a year-on-year decrease of 75.3%, and realized net profit deducted from non-return to mother of 71.61 million yuan, a year-on-year decrease of 83.8%. The performance was in line with the previous forecast.
Looking at Q4 alone, we estimate that the company achieved revenue of 1.14 billion yuan in a single quarter, a year-on-year decrease of 15.2%, achieved net profit of 37.91 million yuan, a year-on-year decrease of 77.9%, and realized net profit deducted from non-return to mother of 29.48 million yuan, a year-on-year decrease of 82.3%.
Industry demand is under pressure, and the pattern continues to clear. The overall domestic projection market was under pressure in 2023. According to Lotu Technology statistics, the annual market sales/sales volume declined by 5.1%/17.3% year on year, respectively. Among them, DLP was severely squeezed by LCD, and the sales share fell by more than 5 pct to 32% year on year. Under pressure from industry demand, the market pattern was further clarified. CR4 sales in the DLP market increased by 1.9 pct to 87.5% year on year, with a share of over 40% of which rice steadily ranked first in the industry. The company has now rationalized its product line. The 10,000 yuan high-end RS series is equipped with a DualLight 2.0 three-color laser, the high-end H series leads the 3,500-7000 yuan price range, and the mid-range Z series focuses on the 2000-3,500 yuan price range. At the same time, it is complemented by the sub-brand Movin Happy Planet's 1LCD technology path, and the business situation is gradually improving. According to Jiuqian statistics, the total year-on-year decline in GMV for the Jimi brand Tmall, JD, and Douyin platforms began to narrow month by month in October and corrected in January 2024, achieving the first positive year-on-year increase since June 2023, and business performance improved steadily.
On the profit side, the company's net interest rate for the whole year fell 8.4 pct to 3.5% year on year, with single Q4 falling 9.5 pct to 3.3% year on year. We speculate that the profit side pressure was mainly due to increased market price competition, increased share of entry-level models in product structure adjustments, and increased cost pressure due to increased competition in platform traffic.
Announcing buyback opportunities, demonstrating business confidence. The company announced on the same day that it will use 80 to 160 million yuan of overfunded shares to be used in future employee shareholding or equity incentive plans within the next year. The repurchase price is not higher than 134.74 yuan/share. It is expected to repurchase no less than 59.19 million shares, accounting for 0.9% to 1.7% of the company's total share capital, demonstrating the management's confidence in long-term operations.
Profit forecasting and investment ratings. Considering that demand in the projection market is still under overall pressure, we lowered the company's 2024-2025 revenue forecast to 4 billion yuan and 4.6 billion yuan respectively, up 13% and 15% year-on-year net profit forecasts to 200 million yuan and 280 million yuan respectively, up 62% and 37% year-on-year respectively. Corresponding PE was 31.1 times and 22.6 times, respectively, maintaining the “increase” investment rating.
Risk warning: Industry demand continues to weaken, and industry competition continues to intensify.