Event: The company released its 2024 quarterly report. 2024Q1 achieved revenue of 432 million yuan, +78% year over year; realized net profit of 107 million yuan, +102% year over year; realized deducted non-net profit of 109 million yuan, +112% year over year, with impressive performance growth.

Q1 The boom in thermos mug exports boosted revenue growth, lower shipping costs and exchange earnings boosted profits.

① Growth: Strong exports of thermos cups in 24Q1 led to a rise in orders, and revenue achieved rapid growth, +78% over the same period last year.

② Profitability: In 24Q1, the company's gross sales margin was 38.70%, +1.70pct year on year, and the net sales margin was 24.88%, +2.95pct year on year. The significant increase in profit level was mainly due to the decline in shipping costs.

③ Expense ratio: 24Q1 company's sales/management/R&D/finance expense ratios were 1.03% /3.99/ 3.22%/-0.84%, respectively, -1.26/-1.95/-0.89/-1.08pct, with excellent cost control capabilities and effective scale effects. Among them, the significant decline in financial expenses was mainly due to the depreciation of the Q1 RMB against the US dollar to achieve exchange gains. Financial expenses ranged from -703.74% to -3.61 million yuan.

④ Cash flow and operating capacity: 24Q1 The company's net operating cash flow was 91.62 million yuan, +408% year over year. Thanks to the increase in sales scale, the cash flow was abundant. The 24Q1 inventory/accounts receivable turnover period was 64/34 days, compared to -36 days/-7 days, and the operating capacity was further improved.

Investment proposal: In 24Q1, China's thermos mug export value reached US$1,097 million, and the export boom is expected to continue in 2024. Currently, Stanley thermos cups continue to be popular in North America, and the non-US market continues to develop. As the main supplier of the Stanley Quencher series, the company is investing in production capacity soon, and there is still plenty of room for growth. The company's net profit due to mother in 2024-26 is estimated to be 592, 737, and 888 million yuan, with a CAGR of 22%. The corresponding PE is 13, 11, and 9 times, respectively, maintaining a “buy” rating.

Risk warning: demand falls short of expectations, increased market competition, fluctuating raw material prices, capacity investment and anticipated risks.