Event: The company released its 2023 annual report and 2024 quarterly report. The company achieved operating income of 2,693 billion yuan in 2023, a year-on-year decrease of 1.87%; net profit to mother was 261 million yuan, a year-on-year decrease of 24.73%. Among them, the company achieved revenue of 792 million yuan in 2023Q4, an increase of 5.66% over the previous year, and realized net profit of 66 million yuan to mother, a year-on-year decrease of 9.53%. The company achieved revenue of 425 million yuan in 2024Q1, an increase of 1.90% over the previous year; achieved net profit of 49 million yuan, an increase of 94.66% over the previous year. Revenue is under pressure, and the domestic revenue growth rate is excellent. By product: In 2023, the company's wireless lithium battery vacuum cleaner/wired vacuum cleaner/motor/sweeper robot revenue was -17.91%/-9.51%/-49.65% /+25.64 to 14.24/7.29/0.15/60 billion yuan. We judge that the pressure on the vacuum cleaner business is due to increased competition in the industry. The energy storage business contributed 290 million yuan in revenue growth in 2023. By region: Domestic revenue performance is superior to overseas. In 2023, the company achieved overseas and domestic revenue of 1,939/699 million yuan respectively, -15.39%/+76.12% year-on-year.
2024Q1 Exchange earnings improved. 1) Gross profit margin: 2023Q4/2024Q1 The company's gross margin changed by 1.5pct/3.54pct year-on-year to 23.53%/20.47%. We judge that this is due to product structure optimization.
2) Rate side: The 2024Q1 sales/management/R&D/finance rate was 0.79%/5.39%/5.31%/-2.46%, with a year-on-year change of 0.26pct/1.63pct/1.56pct/-4.17pct. Expense management capabilities are strong. Among them, changes in financial rates contributed more to exchange earnings. 3) Net interest rate: Overall, the company's 2023Q4/2024Q1 net interest rate changed year-on-year - 1.34pct/5.27pct to 8.55%/11.37%.
Profit forecasting and investment advice. We expect net profit to be 3.12/345/383 million yuan in 2024-2026, respectively, or +19.6%/+10.5%/+10.9% year-on-year, maintaining the “increase” rating.
Risk warning: risk of raw material price fluctuations, increased industry competition, risk of exchange rate fluctuations.