2024Q1's revenue and profit both increased, and downstream prosperity gradually picked up
In the first quarter of 2024, the company achieved operating income of 2,318 billion yuan, and realized net profit of 176 million yuan, +82.29% year-on-year, and realized net profit without deduction of 169 million yuan, or +85.48% year-on-year. In 2024, as industry inventories returned to normal levels, downstream demand gradually recovered, and the company's performance improved significantly. The company is a leader in the intelligent control industry, and there is still plenty of room for development. We have lowered the company's profit forecast for 2024-2025 and added a 2026 profit forecast. The company's net profit for 2024-2026 is 7.96/9.37/1,091 billion yuan (value before 2024-2025), EPS is 0.64/0.75/0.88 yuan, and the PE corresponding to the current stock price is 16.0/13.6/11.6 times, maintaining a “buy” rating.
Profitability continued to increase, increasing investment in technology research and development and market development in 2024Q1, the company's gross margin reached 23.65%, an increase of 1.77pct year-on-year, a year-on-year increase of 7.50%, and a year-on-year increase of 2.66pct. The main reasons for the increase in the company's profit margin are: (1) the increase in new products and high-value categories, and the increase in shipment volume; (2) the gradual elimination of high-priced inventory; and (3) the effective promotion of strategies to reduce costs and increase efficiency. 2024Q1 company expenses increased. The total cost of the three items was 349 million yuan, +19.41% year-on-year. The sales/management/R&D expenses ratio was 3.50%/3.67%/7.87%, respectively, and +0.45pct/-1pct/+0.95pct. Reasons for the increase in sales and R&D expenses:
The controller industry is developing rapidly, and the company is investing heavily in technology and market. At the same time, the company is increasing investment in the new energy sector, while promoting the development of mobile robots, servo drives, etc., and cultivating the third and fourth growth curves.
The traditional sector is growing steadily, and the new energy business is expected to grow into the company's third growth curve 2024Q1: (1) Tool sector: the share of leading customers is stable, and the share of the remaining customers gradually increases as new products expand; (2) Home appliance sector: the company continues to cultivate in the fields of large white appliances (ice washing), kitchen and bathroom appliances, and innovative small household appliances, and is expanding applications such as clean appliances, temperature control, and business scenarios; (3) New energy sector: the company's control and power products are gradually entering the market, and the new energy sector is growing rapidly as the third company curve. We believe that if the prosperity of various downstream sectors recovers, the company's traditional business is expected to continue to grow; at the same time, the company can use its advantages in energy storage and other solutions to further increase its influence in the new energy industry.
Risk warning: The development of the humanoid robot industry and the recovery in major downstream demand for the company's products fell short of expectations.