Incident Overview
According to the announcement:
23 Full year: Total operating income of 13.447 billion yuan (YOY +16.05%), net profit attributable to mother of 1,283 billion yuan (YOY -15.37%), after deducting non-return to mother of 1,229 billion yuan (YOY -13.11%).
23Q4: Total operating income of 4.885 billion yuan (YOY +95.04%), net profit of 418 million yuan (YOY +13.20%), after deducting non-return to mother of 394 million yuan (YOY +5.79%).
Analytical judgment:
On the revenue side, by business:
1) Smart TV business: Achieved revenue of 7.3 billion yuan in 23 years, +32% over the same period last year. According to the company's annual report, the company's smart TV shipments reached 7.314 million units, an increase of 37.31% over the previous year; the smart TV business is an important driving force for the company's overall sales performance growth. Among them, the company's smart TV business has also made great progress in the North American market, and the smart TV business has shown an upward trend in sales of all sizes this year.
2) Innovative display business: Achieved revenue of 960 million yuan in 23 years, +128.9% year-on-year.
Innovative display products have now formed nearly 20 product lines under continuous cultivation by the company. The company actively promotes the popularity of the three major brands “KTC”, “Horion (Horion)”, and “FPD” through active advertising, while also actively developing cross-border e-commerce business, using the company's strong export sales capabilities to push products overseas to explore new markets.
3) Intelligent interactive display business: Achieved revenue of 3.8 billion yuan in 23 years, -9% year-on-year. Among them, sales in the smart interactive display tablet business decreased by 32.56%, and sales in the e-sports display business increased by 169.97%. During the reporting period, smart interactive display tablets were affected by various factors such as the overseas macro environment and overseas customers' inventory removal, and sales in this business declined to a certain extent.
4) Design and processing business: Achieved revenue of 430 million yuan for the full year of '23, or -54% year-on-year.
4) Parts sales business: Achieved revenue of 930 million yuan for the full year of '23, +87% year-on-year.
Performance side:
2023: The company's gross sales margin was 17.8%, -3.3 pct year on year, and the net sales margin was 9.55%, -3.6 pct year on year.
Corresponding to 23Q4: The company's gross sales margin was 18.23%, -8.9pct year on year, and the net sales margin was 8.6%, -6.1 pct year on year.
Look at it by business:
Intelligent interactive display: The gross margin for the full year of '23 was 25.9%, -3.2pct year-on-year.
Smart TV: The gross margin for the full year of '23 was 15.41%, -2.1pct year-on-year.
The innovation category shows that gross margin for the full year of '23 was 14.4%, -5.0 pct year over year.
Looking at the subregion: domestic sales gross profit margin for the full year of '23 was 15.2%, -2.1 pct year on year, gross profit margin for export sales 18.3%, -3.6 pct year on year.
Investment advice
Based on the company's business situation, we adjusted the profit forecast. We expect the company's revenue to be 150/167/18.7 billion yuan in 2024-26 (145/16.6 billion yuan before 24-25), respectively, +11%/+12%, and the net profit to mother for 2024-26 will be 15/17/2 billion yuan (the value was 15/1.8 billion yuan before 24-25), 14%/+17%/+15% year-on-year, and the corresponding EPS will be 2.13/2.51/2.88 yuan, respectively (The value was 2.17/2.61 yuan 24-25 years ago). Based on the closing price of 27.71 yuan on April 11, '24, the corresponding PE was 13/11/10 times, respectively, maintaining the “gain” rating.
Risk warning
Downstream demand falls short of expectations, industry competition intensifies, order acquisition falls short of expectations, risks such as fluctuations in upstream raw material costs, etc., the risk of untimely delivery of goods due to rising sea freight charges and port blockages, the risk of new technology iteration risks, deviations in industry space estimation, the risk of third party data distortion, and the risk that public data used in research reports may be delayed or not updated in a timely manner.