Incident: The company released an annual report and achieved operating income of 10.22 billion yuan, an increase of 1.0%; net profit to mother of 60 billion yuan, an increase of 32.5%, a net interest rate of 5.9% to mother, an increase of 1.4 pct; net profit after deducting non-return to mother of 410 million yuan, an increase of 8.5%, net profit of 4.0% without return to mother, an increase of 0.3 pct.
In a single quarter, 23Q1-Q4 achieved revenue of 16.6/27.2/31.5/2.70 billion yuan, a year-on-year change of -13.3%/-6.4%/+11.9%/+8.2%; net profit to mother of 0.2/2.0/1.6/220 million yuan, a year-on-year change of -54.5%/-5.6%/+13.3%/+279.9%.
The consolidated gross margin in '23 was 26.9%, up 0.9 pct from the same period. The cost rate for the period was 21.3%, an increase of 2.2 pct.
Among them, the sales/management/R&D/finance rate was 10.0%/6.6%/6.0%/-1.3%, respectively, with a year-on-year change of +0.9pct/+0.7pct/+0.3pct/+0.4pct.
Actively developing the market, electric two-wheelers and service robots are growing rapidly. By product, electric balance scooters and electric scooters/electric two-wheelers/robots/all-terrain vehicles/accessories and other products achieved revenue of 34.9/42.3/2.5/7.0/1.55 billion yuan respectively, a year-on-year change of -37.0%/+74.1%/+125.3%/+19.0%/+6.4%; gross margins were 29.5%/19.3%/53.1%/24.6%/38.8%, respectively, up 0.01/3.71/3.80/14.42/3.99pct.
Electric motorcycle products continue to launch new products to meet the diverse needs of customers, and the product market share and sales scale continue to increase. Robots continue to step up research and development efforts, continuously launch new products, actively explore the market, and achieve significant revenue growth.
Domestic revenue performance was good, and revenue from independent products increased dramatically. By region, domestic/overseas revenue was 54.4-8.1 billion yuan respectively in 23 years, a year-on-year change of +23.4%/-16.2%. Domestic revenue surpassed overseas revenue; gross margin was 21.8%/32.7%, respectively, with a year-on-year change of +2.3 pct/+1.8 pct. Domestic revenue growth is high. The main reason is that the company continues to deepen operations, increase investment in R&D, and enhance product competitiveness. By sales model, ToB product direct/customized product distribution/independent brand distribution achieved revenue of 16.0/4.4/8.19 billion yuan respectively, a year-on-year change of -39.6%/-65.0%/+31.4%; gross margin was 37.3%/17.1%/25.4%, respectively, with a year-on-year change of +2.8pct/-2.0pct/+1.7pct. The company enhances product competitiveness and diversity, and achieves a significant increase in sales revenue for its own products.
Profit forecast and rating: Considering external environmental pressure, the company's net profit for 24-25 years was lowered from 90/1.4 billion yuan to 7.3/9.3 billion yuan, corresponding to 27.3/21.3 times PE in 24/25, 1.5/1.2 times PS, with reference to comparable companies giving 33-35 times PE for 24 years, corresponding to 10 CDRs per share. The reasonable value range for each CDR was 33.56-35.60 yuan, corresponding to 1.8-1.9 times PS in 24 years, maintaining the “superior to the market” rating.
Risk warning: Downstream demand is weak, new product launches and technology research and development fall short of expectations, channel expansion falls short of expectations, and industry competition intensifies.