Anke Innovation released its 23rd annual report: 1) In '23, the company achieved revenue of 17.5 billion yuan/ +22.85%, net profit of 1,615 billion yuan/ +41.22%, less than 1,344 billion yuan/ +71.88%; 2) 23Q4 achieved revenue of 5.721 billion yuan/ +21.36%, net profit of 402 million yuan/ +28.39%, less than 421 million yuan/ +70.27%. The deducted growth rate was not mainly due to changes in fair value.
Increase shareholder dividends and focus on long-term returns: 1) The company plans to distribute cash dividends of 813 million yuan in '23, accounting for 50.34% of net profit returned to mother in '23, up from previous years. At the same time, 3 shares will be transferred for every 10 shares of capital; 2) Furthermore, the company plans to distribute dividends for 24 and a half years based on undistributed profit and current results.
By product: 1) Charging energy storage products achieved revenue of 8.6 billion yuan/ +25.12%, gross profit margin of 42.26% /+0.4pct, Anker MagGo, which launched the Qi2 application in January '24, and Anker SOLIX F3800 outdoor power supply, Anker SOLIX X1 household energy storage system, etc.; 2) Intelligent innovative products achieved revenue of 4.541 billion yuan/ +18.72%, gross profit margin of 46.50% /+9.73pct, Launched the eufy smart security dual-camera series, X10 PRO Omni robot vacuum cleaner, etc.; 3) Smart video products had revenue of 4.285 billion yuan/ +26.47%, gross profit margin of 43.52% /+7.81 pct, and launched Soundcore AeroFit open listening series headphones, Motion X600 Bluetooth audio, etc.
Explore the online operation of major platforms+independent sites, and rapidly develop offline: 1) Amazon is still the company's main sales channel, contributing 99.96 billion yuan/ +25.37% of revenue. Other third-party platforms such as JD, Tmall, AliExpress, ebay, Douyin, etc. continue to develop better cooperation, achieving a total revenue of 1,067 billion yuan/ +32.81%; 2) Continuously strengthening independent website construction and increasing the share of complex products. The company's six independent sites achieved total revenue of 1,244 billion yuan/ +83.87%; 3) Based on good online brand reputation and momentum, company Fast offline channels, including major retail stores, 3C stores, and professional channels, etc., cover all countries and continue to expand and expand, achieving revenue of 5.2 billion yuan/ +8.4%.
In terms of profitability, the company achieved a gross profit margin of 43.54% /+4.8pct in '23, mainly due to the increase in gross margin of the two major smart product lines, with a sales rate of 22.2% /+1.58pct. Mainly due to increased promotion, platform fees and personnel remuneration, the management fee rate was 3.33%, which was basically the same as the same period last year; R&D expenses were 8.08% /+0.49pct, increasing growth potential; net profit margin 9.68% /+1.36pct.
Investment advice: As a consumer electronics leader, the company continues to launch new products, further expand channel construction, and optimize profitability are expected to continue to drive the company's performance release. According to iFind's agreed expectations, the company is expected to achieve net profit of 19.2 billion yuan, 22.27 billion yuan, and 2.39 billion yuan respectively in 24-26, corresponding to the closing price PE on April 25 at 18.05, 15.31, and 14.52, respectively.
Risk warning: risks where product development and implementation progress falls short of expectations; macroeconomic risks; exchange rate risks, etc.