Event: The company released its 2023 annual report. The company achieved total revenue of 1,227 billion yuan in 2023, -3.80% year on year; realized net profit of 179 million yuan, -14.64% year over year. Among them, total revenue for the 2023Q4 quarter was 283 million yuan, -9.56% year-on-year; net profit to mother was 0.04 billion yuan, -91.87% year-on-year.
Affected by a sharp decline in the volume of the integrated stove industry, the company's integrated stove revenue declined. Affected by changes in the real estate environment and consumption downgrade, the volume of the integrated stove industry declined sharply in 2023. According to Aowei Cloud Network, the retail sales volume of integrated stoves in China reached 24.9 billion yuan in 2023, a year-on-year decrease of 4%; the retail volume of integrated stoves reached 2.78 million units, a year-on-year decrease of 4.2%. Affected by industry sentiment, the company's integrated stove revenue declined. In 2023, the company's integrated stove revenue was -5.76% year-on-year, and revenue from other products was +16.29% year-on-year.
Gross margin increased year-on-year, and changes in management expenses affected the level of net interest rates. Gross profit margin: In 2023, the company's gross margin increased 2.04 pcts year-on-year to 48.66%. Among them, the gross margin of integrated stoves increased by 1.54 pct over the same period last year. 2023Q4's gross margin increased 0.11pct year over year to 45.35%. Rate side:
The 2023Q4 sales/management/R&D/finance rate was 29.40%/9.99%/6.50%/-2.06%, with a year-on-year change of 0.79pct/8.04pct/2.74pct/-0.59pct. The sharp increase in management expenses over the same period last year was mainly due to an increase in depreciation expenses after the fund-raising project was consolidated. Net interest rate: 2023 net interest rate changed year-on-year - 1.85pct to 14.59%. The company's 2023Q4 net margin changed year-on-year - 14.16pct to 1.40%.
Distribution channels are steady, and diversified channels continue to gain strength. In terms of distribution channels, the company had more than 1,500 dealers at the end of 2023; judging from online channels, the company's online channel product sales amount in 2023 was 900 million yuan, promoting a diversified online channel system; judging from emerging channels, the company actively expanded home improvement and KA channels to keep up with the sinking market.
Profit forecasting and investment advice. Considering the company's performance in 2023 and the overall environment of the integrated stove industry, we expect the company to achieve net profit of 2.11/2.41/267 million yuan in 2024-2026, an increase of 17.6%/14.3%/10.9% year-on-year, and maintain the “increase” investment rating.
Risk warning: Fluctuations in raw material prices, fluctuations in the real estate market, and increased market competition.