The company's net profit to mother increased by 28.3% year-on-year in 23Q4, maintaining the buying rating
The company announced its 2023 annual report on April 24. In 2023, it achieved operating income of 17.51 billion yuan, which is basically in line with our previous expectations of 17.7 billion yuan, an increase of 22.9% over the previous year; net profit to mother was 1.62 billion yuan, an increase of 41.3% over the previous year. Among them, Q4 revenue of 5.721 billion yuan increased 21.4% year over year to 5.72 billion yuan, and net profit to mother increased 28.3% year over year to 40 billion yuan. The rapid growth of the company's energy storage and audio business is driving up revenue. We continue to be optimistic about the company's continued product upgrades and penetration into the global market. We expect the company's net profit to reach 19.9, 22.7 (previous value of 19.5 billion yuan, 2.19 billion yuan) and an additional net profit forecast of 2.59 billion yuan for 26 years. Referring to Wind's consistent forecast of 21.5xPE in 24, the company was given 22xPE with a target price of 107.36 yuan (previous value of 110.76 yuan) to maintain the purchase rating.
Energy storage and audio are the main drivers of revenue growth, and the company's gross margin increased by 4.8pct in the charging energy storage category. In 2023, Anker SOLIX launched a variety of star products, such as the SolarBanke1600 balcony photovoltaic energy storage product, the C1000 outdoor power supply, and the first Anker SOLIX F3800 outdoor power supply to achieve AC coupling and grid-connected photovoltaics. Revenue from the rechargeable energy storage category increased 25.1% year on year, and gross margin increased 0.4 pct year on year, driven by energy storage products. In terms of intelligent innovation, the company returned to the dominant category. The security category led to an 18.7% year-on-year increase in revenue and a 9.7pct year-on-year increase in gross margin. In terms of the smart video category: With the release of new audio and the rapid penetration of Japanese channels, it performed well. Overall revenue increased 26.5% year over year, and gross margin increased 7.8 pct year over year.
The year-on-year increase in the management expense ratio and sales expense ratio is due to an increase in equity incentives and advertising expenses in 2023. The company's sales expense ratio increased 1.6 pct to 22.2% year on year, the management fee ratio increased 0.1 pct to 3.3% year on year, and the R&D expense ratio increased 0.5 pct year on year. Among them, the increase in the three cost rates was due in part to the increase in equity payment fees. Continued product innovation and promotion also led to a year-on-year increase in sales expenses and R&D expenses.
The strength of energy storage, security, and audio is expected to boost the company's long-term revenue growth center. We continue to be optimistic about the company's continued penetration into energy storage, security, and audio tracks, and our share is expected to continue to grow.
We expect the company's net profit to reach 19.9, 22.7, and 2.59 billion yuan in 24-26. Referring to Wind's consistent forecast of 21.5xPE in 24, the company will be given 22xPE with a target price of 107.36 yuan, maintaining the purchase rating.
Risk warning: Overseas competition has intensified, exchange rate fluctuations, and the optimization of sea freight rates has narrowed.