The company released its 2023 annual report
23Q4 revenue was $547 million, up 29.2%; net profit due to mother was $158 million, up 51.6%; net profit after deducting non-return to mother was 142 million, up 38.9%; revenue from 2023 was 1.78 billion, up 41%; net profit to mother was 470 million, up 74%; net profit without deducted back to mother was 4.7 billion, up 72%.
The gross profit margin in 2023 was 40.7%, up 6.5 pct; the 2023 sales expense ratio was 1.6%, down 0.14 pct, mainly due to an increase in personnel remuneration and implementation of employee equity incentives; a management expense ratio of 4.41%, a decrease of 0.07pct, mainly due to improving the level of employee benefits and implementing equity incentives; the financial expense ratio -0.73%, an increase of 1.3 pct, mainly due to the small change in the exchange rate of RMB against the US dollar in 23 compared to the previous year. In 2023, the company's net profit margin was 26.59%, up 5.1 pct.
The company plans to distribute a cash dividend of 20 yuan (tax included) to all shareholders for every 10 shares; a total of 208 million yuan, with a dividend ratio of about 44%.
The largest customer sold 1.51 billion dollars, accounting for 85% of the total, an increase of 75%; the largest customer grew steadily.
The development logic of the company's reliance on the big customer model is reasonable and feasible; as the prosperity of the stainless steel vacuum insulation ware industry increases, deep cooperative relationships with high-quality customers help the company increase its market share in the production business, and at the same time rely on core customers to establish a brand image, have a benchmarking effect, enhance industry popularity, and ensure the company's long-term stable revenue scale and profitability.
In 2023, sales of 38.13 million units were sold, an increase of 17.6%; the unit price was about 46.6 yuan, an increase of about 20%; volume and price increased rapidly to achieve high-quality growth.
The functional requirements of thermos cups vary greatly in different usage scenarios; scene segmentation drives product differentiation in capacity, volume, and material: large-capacity cups serve driving and outdoor sports scenarios, and have been favored by consumers in the past two years; lightweight and portable cup types serve outdoor sports such as mountaineering, rock climbing, and hiking; novel and stylish products are suitable for everyday street and social situations. Diversification of consumption scenarios has led to an increase in the frequency of consumption, and the time when one thermos mug went around the world is gone.
Thermoses are gradually changing from “functional” products to “consumer” products.
As consumers' purchasing power increases, various thermos brand manufacturers continue to launch new designs and co-branded products to stimulate users' enthusiasm for consumption in multiple dimensions, expand the product audience and speed up product replacement. The product repurchase rate has increased dramatically, and the size of the thermos mug market is growing rapidly.
At the same time, users are also putting forward higher consumer demand for products, pursuing better design, more high-end value image, and more environmentally friendly product concepts. Consumer demand shifts from quantity to quality, from basic needs to quality upgrades, and from practicality to fashion. At the same time, internationally renowned thermos mug brands have given thermos cups conceptual attributes such as fashion, trend, and social on various social media, adding cultural and artistic elements to high-end thermos brands, and have transformed thermos mugs from a simple durable household item to a fashionable FMCG product.
Steadily promote the production and construction of the Vietnamese subsidiary.
The global layout helps the company meet customer needs, strengthen the cooperative relationship between the two parties, improve the company's service capabilities, and expand the competitive advantage of the company's products in the international market. The company will make full use of the labor cost advantages of Vietnam's manufacturing industry, expand production capacity, improve the company's ability to respond to orders, and improve customer satisfaction.
Looking forward to the future, ① the TikTok platform brought Stanely Quencher out, confirming the importance of social media in the transformation of thermos mugs from practical products to products with trendy social and fashion attributes, and is expected to continue to unleash growth potential; ② Jiayi's Vietnam factory strengthens supply chain collaboration with overseas customers, which is conducive to enhancing core competitiveness.
Adjust profit forecasts to maintain “buy” ratings
According to the 2023 annual report, we adjusted the profit forecast for the previous period. The company's net profit for 24-26 is estimated to be 580 million/710,000 million/8.4 million (the value was 576/706 million 24-25 years ago), and the corresponding PE is 13X/10X/9X, respectively.
Risk warning: overseas demand recovery falls short of expectations; risk of declining core customer share; capacity expansion falls short of expectations, etc.