On April 19, 2024, Joyang Co., Ltd. released its 2024 quarterly report.
Joyoung Co., Ltd. released its 2024 quarterly report. The company achieved revenue of 2.07 billion yuan in the first quarter, an increase of 9.2% over the previous year, achieved net profit of 130 million yuan, an increase of 7.1% over the previous year, and realized net profit without deduction of 130 million yuan, an increase of 7.2% over the previous year.
The domestic sales industry is stabilizing, and new products drive subsequent sales. According to Aowei Cloud Network channel monitoring data, the GMV of the online channel for major small kitchen appliances (including rice cookers, induction cookers, electric kettles, electric pressure cookers, soy milk machines, cooking machines, juicers, frying machines, health pots, and electric steam cookers) fell slightly by 0.3% year-on-year in the first quarter, and domestic sales market demand for just needed categories remained stable. The company released the Space Technology 3.0 series on April 18, including 2024 0-coated non-stick rice cooker 40N9U pro, all-purpose nutrition master Y8, and Joyang Space Heat Xiaojing R5P. It is expected that the new products will have a positive driving effect on the company's subsequent sales.
Export revenue remained stable year over year. As of March 27, the company had sales related transactions totaling US$18.17 million with JS Global Life, SharkNinja and related companies, and the total amount of company-related transactions for the same period in 2023 was US$2.06 million (as of March 30). Considering that the US dollar exchange rate was relatively low in the first quarter of 2023, according to Wind data, the average exchange rate of 2024Q1 US dollar to RMB increased by about 12.8% year on year. We speculate that the company's export revenue remained stable year over year in the first quarter.
On the profit side, the company's gross margin fell 0.9 points to 26.9% year on year in the first quarter. We estimate that mainly due to changes in product structure and rising raw material prices, the cost ratio for the first quarter increased slightly by 0.1 points to 20.7% year on year. Among them, the sales/management/ R&D/finance ratio changed +0.7/+0.2/ -0.2/ -0.6 pt year on year, respectively. In addition, the company's other revenue for the first quarter increased by 14.94 million yuan year on year, affecting the operating profit margin by about 0.7 pt, mainly due to an increase in value-added tax deductions; credit impairment losses decreased by 14.68 million yuan year over year, which positively affected the operating profit margin by about 0.7 pt. We speculate that it was mainly due to the return of bad debt losses in the previous period. Taken together, the company's net interest rate for the first quarter was 6.3%, a slight decrease of 0.1 pt from the previous year.
On the asset side, the company's inventory for the first quarter decreased by 22% year on year, and the number of inventory turnover days was drastically reduced by 13 days year on year, and operating efficiency improved markedly. In terms of cash flow, the company's operating cash flow in the first quarter increased slightly by 2.1% year on year. The revenue ratio and net cash ratio both remained more than 1 times higher, and the quality of operations was consolidated.
Profit forecasting and investment ratings. We expect the company's revenue for 2024-2026 to be 10 billion yuan, 11 billion yuan and 12 billion yuan respectively, up 4%, 10% and 10% year-on-year increase. The net profit due to mother is estimated to be RMB 470 million, RMB 540 million and RMB 620 million respectively, up 21%, 14%, and 14% year-on-year respectively. The corresponding PE is 19.2 times, 16.8 times and 14.7 times, respectively, giving an “increased” investment rating.
Risk warning: Market demand falls short of expectations, market competition intensifies, and completion of related transactions falls short of expectations.