The company released its 2023 annual report
23Q4 revenue of 190 million, same increase of 40%; due to mother of 0.15 million, same decrease of 8%; after deduction of not, 0.15 million, same decrease of 3.2%; revenue of 2023 of 640 million, same increase of 28%; return of 91 million yuan, same increase of 11%; after deduction of 88 million yuan, same increase of 16%
In 2023, the company's gross profit margin was 38.7%, an increase of 4.4pct;
In 2023, the company's sales expenses rate was 14.88%, an increase of 5.1 pct, mainly due to the increase in the company's investment in e-commerce platforms, advertising, exhibitions, etc.; the management fee ratio was 5.95%, a decrease of 0.51 pct; and the financial expenses ratio was -2.84%, an increase of 1.05 pct, mainly due to a decrease in exchange earnings.
In 2023, the company's net profit margin was 13.8%, a decrease of 2.2 pct.
Revenue from finished shading products increased rapidly in '23. Overseas revenue grew faster than domestic companies' revenue of 470 million shading fabrics, accounting for 74%, up 10%, gross profit margin 36.5%, and 3.9 pct; revenue from finished shading products was 150 million, accounting for 23%, up 136%, gross profit margin of 46.6%, and 2.36 pct.
By region, among the main businesses, revenue from mainland China was 210 million, accounting for 33%, up 13%; gross profit margin was 25.7%, down 1.7 pct; revenue from regions outside mainland China was 420 million, accounting for 66%, up 36%; and gross profit margin was 44.6%, up 6.7 pcts.
On the industry side, functional shading products have a penetration rate of 70% in Europe and the US. They enter home supermarkets and become FMCG products, and the replacement cycle is 3-5 years or even shorter; the global market space is large, and demand differentiates significantly. The domestic competition pattern is scattered, leading enterprises are highly competitive. First-tier enterprises have more advanced production technology and equipment, have a large production scale and good reputation at home and abroad, and have high profitability.
The company has clear competitiveness, exports its products to the world, maintains long-term and stable cooperative relationships with large and high-quality customers; adheres to characteristic product routes and differentiated competitive strategies, and customizes supporting sales policies for different markets and customers through R&D and production of cost-effective products.
The company's finished shading products are developing rapidly. Among them, overseas e-commerce is beautiful. It has established sales channels through Amazon, etc., and has been recognized and praised by overseas consumers; the scope of services of offline direct sales offices has been expanded domestically, and 28 offices have been set up across the country, covering more than 45 cities.
Adjust profit forecasts to maintain “buy” ratings
The company is a high-tech enterprise focusing on R&D, production and sales of functional shading materials. It has now become a leading enterprise in the domestic functional shading materials segment, and its products are exported to six continents and more than 70 countries and regions around the world. Due to the rapid growth rate and high cost of developing cross-border e-commerce, we adjusted the company's profit forecast. The company's net profit to mother is estimated to be 1.21/1.53/187 million yuan (the value was 143/181 million yuan, respectively, 24-25 years ago), EPS was 0.88/1.11/1.36 yuan/share, respectively, and the corresponding PE was 16/12/10X, respectively.
Risk warning: Fund-raising production capacity falls short of expectations, cross-border e-commerce expansion falls short of expectations, risk of fluctuations in raw material prices, risk of market competition, risk of exchange rate fluctuations, etc.