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荣泰健康(603579):外销收入略有承压 盈利大幅改善超预期

Rongtai Health (603579): Export revenue was slightly pressured, profit improved sharply, exceeding expectations

浙商證券 ·  Apr 26

Report guide

Rongtai Health released its 2024 quarterly report. The company achieved revenue of 401 million yuan in 24Q1, +3.86% year over year; net profit to mother of 62.74 million yuan, +67.31% year over year; net profit of 61.06 million yuan after deduction, +136.04% year over year. The company's 24Q1 performance slightly exceeded our expectations and maintained a “buy” rating.

Key points of investment

Revenue side: Domestic consumption is under pressure, revenue is slightly pressured due to reduced orders from South Korea. Domestic economic growth is shifting gears, and sluggish consumption is putting pressure on massage chair consumption as a whole. According to the company's announcement, the main reason for the pressure on export sales is that South Korea has few orders in January-January. Even though the US regional revenue is +30% year-on-year, export sales revenue is expected to remain basically flat in Q1.

Profit side: Structural improvements in revenue and reduced expense ratios greatly increased profitability 1) The company achieved a gross profit margin of 35.88% in 24Q1, a significant increase of 6.6 pct over the previous year. The sharp increase in gross margin was due to better growth in regions with higher gross margins in the US and Europe. Domestic 24Q1 offline performance was better, and some products from offline channels were more profitable. 2) The company's 24Q1 sales, management, R&D and financial expenses rates were 9.8%, 5.1%, 5.0%, and -2.0%, respectively, -1.2 pct, +0.8 pct, +0.6 pct, and -3.4 pct, respectively. The decrease in the sales expense ratio is due to a reduction in endorsement fees, and the decrease in the financial expense ratio is due to exchange earnings.

Profit forecasting and valuation

We expect the company to achieve revenue of 21/24/26 billion yuan in 24-26, corresponding growth rates of 10%/15%/12%; the company is expected to achieve net profit of 2.5/2.9/330 million yuan in 24-26, corresponding growth rates of 24%/16%/13%, corresponding EPS of 1.81/2.09/2.37 yuan, respectively, and corresponding PE of 13x/11x/10x, respectively. Maintain a “buy” rating.

Risk warning

Exchange rate fluctuations; raw material price fluctuations; macroeconomic downturn

The translation is provided by third-party software.


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