The company's annual revenue for '23 was 261.4 billion yuan, up 7.3% year on year, and realized net profit to mother of 16.60 billion yuan, up 12.8% year on year. Among them, Q4 achieved revenue of 62.77 billion yuan in a single quarter, up 6.8% year on year, and realized net profit of 3.45 billion yuan to mother, an increase of 13.2% year on year. The revenue and profit sides of Q4 achieved good and steady growth in the single quarter, and the growth rate performance was superior to that of the Q3 quarter. The company plans to pay a dividend of 0.804 yuan per share, with a dividend rate of over 45%, corresponding to the current stock price dividend rate of 3.38%. Furthermore, the company plans to have a dividend ratio of not less than 50% in the 25th and 26th years.
The increase in gross margin in the domestic market is driving overall profitability to continue to recover. In 2023, the company benefited from the decline in bulk raw materials and its own digitalization and product structure optimization. The increase in gross margin increased year-on-year, driving the company's overall gross margin to increase by 0.2 pct year-on-year to 31.5%. Among them, Q4's gross margin reached 34.03% in a single quarter, up 0.06pct year-on-year.
China promotes brand upgrading, and overseas markets promote high-end brand creation. The company's refrigeration/kitchen appliances/washing/air/water business achieved revenue of 819.1/416.5/614.9/461.0/15.34 billion yuan respectively, an increase of 5.2%/6.9%/6.2%/13.1%/8.5% year-on-year. In China, with reference to Gfk data, the company's offline and online share of the refrigeration industry increased by 1.3 pct/1.1 pct, respectively, to 45.2%/40.3%, and the high-end market share increased significantly. The annual revenue of the kitchen appliance business increased by more than 10%, and its share in the high-end embedded category reached 17.9%. The share of retail sales in the online market was 4.3%, an increase of 0.8 percentage points over the previous year. The share of offline/online sales of washing industry companies reached 47.5%/40.4%, an increase of 1.5 pct over the previous year and remained flat. In the air conditioning business, Casadi Nebula promoted the company's high-end share of over 10,000 yuan to reach 37%, ranking first in the high-end market. In 2023, retail sales at Tri-Wings stores increased by 84% year-on-year, with complete sets accounting for more than 60%.
In overseas markets, the company achieved revenue of 136.4 billion yuan, an increase of 7.6% over the previous year. It adhered to the high-end brand creation strategy, integrated global R&D resources, and launched original technology to lead the industry trend. Among them, North America/Europe/South Asia/Southeast Asia/Japan achieved revenue of 797.5/284.5/95.2/57.8/3.62 billion yuan respectively, up 4.1%/23.9%/14.9%/11.6%/2.6% year-on-year. Referring to Euromonitor data, the global retail market for home appliances reached $53.1 billion in 2023, an increase of 1.5% over the previous year. Among them: The retail sales of core household appliances reached US$287 billion, the same as the previous year, and the company's overseas performance was superior to the industry average.
Investment advice and profit forecasting. We believe that the Casadi brand will continue to define its advantages in the high-end market through product leadership and integrated layout. The domestic Tri-Wingbird scenario-based service continues to empower the company's retail performance, and overseas construction of the Belt and Road national supply chain improves the global market layout. We expect the company's 24-26 EPS to be 1.99/2.24/2.53 yuan, an increase of 13.1%/12.8%/12.5% year-on-year, giving the company a 24-year 15-18xPE valuation, corresponding to a reasonable value range of 29.85-35.82 yuan, maintaining a “superior to market” rating.
Risk warning. Raw materials fluctuated, exchange rates fluctuated, and terminal demand fell short of expectations.