On March 21, 2024, the company disclosed its 2023 annual report results, achieving full year revenue of 3.20 billion yuan, +10.3% year over year; realized net profit of 410 million yuan, +41.4% year over year; and realized net profit without return to mother of 390 million yuan, +40.6% year over year. Among them, Q4 achieved revenue of 710 million yuan, +20.2% year over year; realized net profit of 60 million yuan, +140.1% year over year; realized net profit without deduction of 40 million yuan, +103.4% year over year.
23 Full year results are in line with expectations. By product, the revenue of freezer/refrigerated/supermarket/smart cabinets for the full year of 2023 was 20.8/5.7/2.2/180 million yuan, respectively, +17.9%/+5.1%/-30.6%/+9.5% year-on-year. Among them, the growth rate of freezers was impressive, mainly due to the release of industry demand and good customer development processes. The company's domestic sales market position remained stable, and export sales grew rapidly. Refrigerators and smart cabinets have maintained steady growth. The weak performance of supermarket showcases was mainly due to a decrease in individual customer orders at the beginning of the year (changes in customer marketing strategies and category procurement). The growth rate rebounded in the second half of the year as downstream demand gradually recovered and new strategic customer order revenue was confirmed. At a regional level, domestic and foreign sales revenue was 21.4/970 million yuan, +0.2%/+47.8% year-on-year, and export sales showed impressive growth rates.
Low raw material prices+improved product structure+overseas recovery. The company's gross margin increased significantly, and profitability further improved. The company's gross margin reached 29.7% in 2023, +6.0pct year-on-year. Sales Expense Rate/Management Expense Rate/Financial Expense Rate/R&D Expense Ratio were 7.6%/3.3%/-1.2%/3.4%, respectively, compared with the same period last year
+2.4pct/+0.2pct/+0.4pct/-0.3pct. Under the combined influence, the net interest rate in 2023 reached 12.9%, compared with +2.4pct, and profitability further improved.
I am optimistic that the company's refrigerator+refrigeration business will continue to grow. Looking ahead to 24 years, exports in the freezer industry will continue to recover, the company has stable strategic cooperation with leading customers, and continues to develop new customers. Refrigerators have entered the batch supply list of some beverage giants in 23 years, orders from foreign customers have also increased, and the future export and refrigeration incremental market will be huge. Furthermore, the company's smart cabinet business is gradually starting up, leading FMCG companies have clear purchase orders, and the after-sales service system can also bring continuous revenue. Furthermore, the increase in the proportion of high-margin smart cabinets is also beneficial to the company's long-term gross margin optimization and is optimistic about the company's growth.
The company is expected to achieve net profit of 4.8/5.7/670 million yuan in 2024-2026, +16.1%/+18.3%/+17.4% year-on-year. The PE corresponding to the company's current price is 13.0/11.0/9.4x, maintaining a “buy” rating.
Consumption recovery fell short of expectations; competition in the industry intensified; raw material prices fluctuated.