The company's 23-year performance was under pressure, and prosperity rebounded in the first quarter of '24, and revenue turned positive
Jiuqi Co., Ltd. released its annual report for the year 23 and the quarterly report for '24. It achieved revenue of 2,006 billion yuan (yoy -15.57%) in 2023, net profit of 106 million yuan (yoy -36.57%), and deducted non-net profit of 909.741 million yuan (yoy -40.78%). Of these, 23Q4 achieved revenue of 453 million yuan (yoy -10.44%, qoq -12.37%) and net profit to mother of 108.673 million yuan (yoy -22.70%, qoq -74.50%). 24Q1 achieved revenue of 529 million yuan (yoy +8.69%, qoq +16.96%) and net profit of 21.4938 million yuan (yoy +55.06%, qoq +97.78%). We expect the company's 24-26 EPS to be 0.69, 0.84, and 1.02 yuan respectively. Comparatively, the company's 24-year wind unanimously expected the average PE value to be 21 times, giving the company 21 times PE in 24 years, with a target price of 14.49 yuan (previous value of 16.25 yuan) to maintain a “purchase.”
23 The gross margin increased throughout the year, and the cost ratio for the period increased due to exchange and R&D factors
Due to weak demand in overseas markets, the company sold 2349,377 units of bicycles in 2023, a year-on-year decrease of 7.07%, and the number of motorcycles sold 10,923 units, an increase of 206.31% year-on-year. Despite sales pressure, the simultaneous decline in operating costs led to an increase in gross margin for the whole year, with a gross profit margin of 15.03% for the whole year, an increase of 1.48 pct; the cost ratio increased by 3.42 pct to 9.35% year-on-year, with sales/management/R&D/finance expenses ratios of 7.34%, 1.45%, and -1.03%, respectively, +0.73 pct, 0.34 pct, 0.52 pct, and 1.83 pct; the increase in financial expenses was mainly due to a decrease in exchange earnings in 23, which led to an increase in financial expenses and R&D expenses The increase was mainly due to an increase in R&D investment.
In the first quarter of '24, revenue grew steadily year on year, and net profit to mother increased significantly year on month
24q1's gross margin increased 0.08 pct year over year to 12.84%, which is relatively stable. The cost ratio side benefited from the 24Q1 exchange rate factor. The overall cost ratio decreased by 2.28 pct to 7.00% year on year. Among them, the sales/management/development/finance cost rates were 5.88%, 1.39%, 1.17%, and -1.44%, respectively, -0.01pct, -0.05pct, +0.06pct, and -2.28pct. According to statistics from China's General Administration of Customs, China's bicycle export boom rebounded in the first quarter of 2024. The export volume was 11 million vehicles, up 29.3% year on year, and the export value was 70.92 million US dollars, down 7.8% year on year. Electrification, personalization, and high-end technology promote the high-quality development of the bicycle industry. According to the company's 23 annual report, electric bicycles are a new type of vehicle that uses motors and batteries as auxiliary power, and is equipped with an intelligent sensor system to provide power assistance according to the size of the cyclist's pedaling force, to achieve integrated human riding and motor assistance. Advances in lithium-ion battery technology and improvements in price and capacity in recent years have helped to set off a boom in the electric bicycle market around the world, especially high-end models. Since electric bicycles can solve the “physical burden” usage barrier in mountainous and ramps, helping electric bicycles have become the main driving force for the development of the European bicycle market.
Risk warning: risk of fluctuations in international macroeconomics and consumer demand; risk of international trade policy; risk of remittance risk; risk of increasing industry competition and weakening profitability; risk of private brand expansion falling short of expectations.