The company released its 2024 quarterly report:
24Q1: Revenue of 23.49 billion (+20.1%), net income of 980 million (+59.5%), deducted non-840 million (+60.9%).
Revenue and profit exceeded market expectations.
Q1 Revenue side: export β+α resonance
Overall: We expect export sales to grow faster than domestic sales in Q1, with domestic sales close to +20% and export sales exceeding 20%. Compared with domestic sales/export sales of +15%/+12% for the whole year of 23, Q1 will accelerate further.
CCAC: Accounting for 25%. We expect high single-digit growth in Q1. Export sales are significantly faster than domestic sales. Domestic/export sales are expected to increase by single-digit and double-digit year-on-year respectively. Compared with the single-digit increase in 23Q4, CCAC improved slightly from 23Q4.
Home space: accounting for 25%. We expect a growth rate of about 15% in Q1. Among them, domestic/export sales growth rate is similar. Compared with the 23Q4 growth rate of about 20% (23Q4 domestic/export sales growth rates of more than 15%/25% respectively), the home space boom continues.
Ice washing: accounting for 30+%. We expect the Q1 growth rate to be about 40%. Among them, export sales are expected to explode. Domestic/export sales growth rates are expected to exceed +20%/70% respectively. Compared with the 23Q4 ice washing growth rate of over 30% (export sales are high double-digit year-on-year growth), the growth rate continues.
Sanden: We expect Q1 revenue to be positive, and orders will almost double. Compared with the 23Q4 growth rate, which is slightly negative, month-on-month improvement.
ASEAN region: Strong performance. We expect Q1 revenue growth of more than 60% and OBM growth to double.
Q1 Profit side: The profits of the four major sectors all increased sharply year over year
CCTV: The net interest rate in Q1 increased by about +2 pct. We expect the net profit to be increased by about 100 million dollars compared to the same period last year, mainly contributing to cost reduction and efficiency.
Home shortfall: The net interest rate in Q1 increased by about +2 pct. We expect the net profit of the contribution to the mother increased by about 100 million compared to the same period last year.
Ice washing: The Q1 net interest rate increased by about +2 pct. We expect the net profit of the contribution to the mother increased by about 150 million compared to the same period last year.
Sanden: We expect Q1 to be profitable, with a slight month-on-month improvement over 24Q1.
Investment advice: Continued to exceed expectations, α grippers continue to be visible
Our point of view:
The company's subsequent alpha gripper continues to be visible. Since 23, it has exceeded expectations for 5 consecutive quarters. Over the long term, there is room to improve efficiency in domestic sales, cold washing export sales, and Sandian.
Profit forecast: Revenue for 24-26 is expected to be 985/1091/119.2 billion yuan, with corresponding growth rates of 15%/11%/9%, respectively, net profit of 34/39/4.5 billion yuan, respectively, growth rates of 21%/15%/15%, and corresponding PE 15/13/11X, respectively. Normalized incentives consolidate growth, 50% dividend is expected to be maintained, and a dividend rate of about 4%, maintaining the “buy” rating.
Risk warning
Industry sentiment fluctuates, competition intensifies, raw material prices fluctuate greatly, and exchange rates fluctuate greatly.