Report highlights
The company achieved operating income of 17.5 billion yuan in 23 years, +22.85% year on year; realized net profit of 1.6 billion yuan, +41.22% year on year; net profit after deducting net profit of 1.34 billion yuan, +71.88% year on year.
The field of charging and energy storage is the company's key development area, and revenue increased 25% year-on-year in '23. Among them, charging products, mainly the Anker brand, are the company's steady basic market. It is expected that with brand barriers, product power advantages and marketing capabilities, the company will continue to benefit from trends such as quick charging and no charging accessories included; household photovoltaic and energy storage products, mainly the Anker SOLIX brand, are a series of products successfully launched by the company in 23 years. The company lays a good foundation for entering the energy storage field. It is expected that in the context of global energy shortages and dual carbon goals, the company will be in the field of energy storage. There are still promising results.
Revenue from innovative smart products increased 19% year over year. Among them, in terms of security products, the home security market in developed countries such as Europe and America is currently close to saturation, but there is still an iterative demand for high-performance and multi-functional products. In the future, the company will continue to use its ability to gain insight into market demand, starting from the pain points of user demand, and is expected to use the advantages of the Eufy brand to create the next security explosion-proof model. In terms of sweepers, the company began rebranding in 2022 and continued transformation to the middle and high-end market. It is expected to benefit from a continuous increase in the penetration rate of overseas sweepers in the future.
Revenue from smart video products increased 26% year over year. Among them, in the field of smart projection, the company established an optoelectronic R&D laboratory to achieve independent development on the core components (optical machines) of projectors, which is expected to improve product richness and user experience on the basis of further cost optimization. In terms of wireless headsets, the company gradually adjusted its product strategy in 2022 and began launching cost-effective products to expand the mid-range market, which is expected to form a new market space.
Investment advice and profit forecasting
The company adheres to long-term principles and is committed to brand building. Based on core capabilities such as brand barriers and new category operation experience, the company continues to invest in and build multiple categories and brands, continuously creating new growth points for the company. We predict that the company's net profit for 24 years will be 2.04 billion yuan, giving 20xPE, corresponding to a share price of 100.5 yuan, maintaining a “buy” investment rating.
Risk warning
Downside risks: Price competition intensifies, the global economy continues to decline, demand in the mobile phone market continues to decline, freight costs rise, RMB exchange rate falls, tariff policy changes adversely, and the development of new categories falls short of expectations
Upside risks: Continued improvement in the global macroeconomic environment; continuous recovery in mobile phone demand in 24 years; following Apple MR, global XR products use external battery designs; market demand for sweeping robots rebounds