The company released the 2023 annual report and the 2014 quarterly report
24Q1 revenue was 641 million yuan, up 11.5%; net profit attributable to mother was 36 million yuan, an increase of 11.2%; after deducting non-return to mother, the same increase of 8.2%;
23Q4 revenue was 1,098 million yuan, up 3.2%; net profit attributable to mother was 126 million yuan, up 11.8%; after deducting non-return to mother, 124 million yuan, an increase of 30.5%;
23A revenue of $3,645 million, an increase of 2.6%; net profit attributable to mother was 292 million yuan, an increase of 5.4%; after deducting non-attributable income of $234 million, an increase of 22.2%;
Revenue growth in 23 years was mainly due to increased sales in the wardrobe and wooden door categories; the increase in performance was due to continuing to deepen technological innovation and cost leading strategies to build the core digital intelligence and cost power of digital R&D supply and marketing, improving the company's level of intelligent and flexible manufacturing, and the results of cost reduction and efficiency measures are becoming more and more evident; at the same time, the company continued to optimize the supply chain, improve supply chain management efficiency, and reduce raw material procurement costs.
In 2023, the company plans to distribute a cash dividend of 91.7382 million yuan (tax included), with a dividend rate of 31.41%. It is also planned to pay an interim dividend in 2024, and the dividend rate is expected to be no less than 30%.
By category, overall kitchen cabinet revenue was 2,232 billion yuan, down 5.6%, gross profit margin 29.2%, same decrease 0.02pct; overall wardrobe revenue was 1,044 million yuan, up 8.7%, gross profit margin 29.7%, up 0.5 pct; wooden door revenue was 246 million yuan, up 65%, gross profit margin 7.2%, same increase 0.03 pct.
Gross profit margin of 29.6% for 23 years, increase of 0.1 pct; net profit rate of 8.0%, increase of 0.3 pct, total rate of 22.8%, same increase of 0.6 pct; of these, sales rate was 12.0%, same decrease of 0.1 pct; management rate was 4.7%, same decrease of 0.03 pct; financial rate -0.1%, same increase of 0.1 pct, mainly due to interest expenses arising from issuing convertible corporate bonds in 23; R&D rate 6.2%, increase 0.6 pct, mainly to expand new categories and enhance product competitiveness, and continuously increase new products Class R&D investment.
Continuously promote the expansion of retail channels, hardcover channels, and overseas channel business, and build a dual-cycle retail channel at home and abroad: the company innovatively proposes 140 large-scale retail strategies, that is, 1 refers to stores. The store is the undertone of the gold medal brand power and the carrier of channel power and experience. The company enhances store operating vitality through continuous investment promotion and iterative upgrading of the store format. By the end of 2023, the company had 1,709 gold medal kitchen cabinet stores (including those under construction), 1,152 gold medal cabinet stores (including those under construction), gold medal wooden stores and zones (including 606) under construction). 4 refers to the four major channels of online marketing/home improvement/bag/office reform to guide dealers to build multi-line combat effectiveness, especially home improvement channels that have grown rapidly in the past two years. The company has continuously deepened strategic cooperation in home improvement channels through a combination of different business models. 0 refers to assembly. Empower home improvement companies through dealers in reverse, cultivate customization+hardware service capabilities, and meet the needs of customers for integrated assembly. In '23, the company's home improvement and assembly channel business revenue doubled.
In terms of hardcover channels: On the one hand, under the premise of risk prevention and control, the company continues to sign strategic cooperation with high-quality real estate to further explore signed strategies and rapidly increase new ones; at the same time, the company relies on the brand and its resource advantages to gradually bring categories such as wooden doors and kitchen appliances into hardcover collection. At present, the hardcover wooden door category has achieved both order placement and investment growth. The company's hardcover channel achieved positive resiliency growth in 23 years.
In terms of overseas channels: In response to regional market differences, the company determined a differentiated business development model and production delivery guarantee logic, and began a new stage of international development. In terms of business development models: The North American market continues to promote the expansion of RTA distributors, and the overall cooperation accelerates the signing and implementation of engineering projects; the Australian market continues to achieve further breakthroughs in the market through the engineering subcontract model; the Southeast Asian market promotes overseas platform branches to comprehensively strengthen the layout of retail channels, home improvement channels and engineering channels.
Delivery guarantee logic: The company uses the Thai manufacturing base as the core and sets up a satellite factory in the regional market to achieve the supply of large goods from the Thai base, achieve the scale effect of large goods, control production costs, meet the individual needs and response time of customers through localized satellite factory guarantees, enhance localized service capabilities, and better establish an integrated cycle of production and marketing in the local supply chain and overseas markets. Within 23 years, overseas channels achieved sales revenue of 274 million yuan, an increase of 16.9% over the previous year.
Keep up with business and strategy and continue to consolidate digital infrastructure
Starting with customer service core value chains such as customer acquisition, dealer store operation, logistics distribution, and installation services, the Kunlu Cloud low-code development platform is used to separately build the five digital tools of Jindian Development, Management, Intelligent Design, Dry Warehouse Distribution, and Golden Gongfu. The full stack empowers dealers, strengthens terminal service capabilities, optimizes management and resource allocation, and allows dealers to invest more time and energy in sales and customer service processes to reduce costs and increase efficiency and enhance overall competitiveness.
In terms of intelligent manufacturing, the company has deepened the construction of advanced digital manufacturing, represented by the Chengdu Gigafactory. Through MES+SCAD+ storage and connecting rollers, the company has achieved true highly flexible mass manufacturing with full connectivity, retail and engineering, and promoted the implementation of a cost-leading strategy.
Update profit forecasts and maintain “buy” ratings
The company's multi-category layout covers various sub-categories such as kitchen cabinets, wardrobes, wooden doors, kitchen appliances, smart homes, bathroom balconies, and soft furniture and furniture. Through the multi-category strategy, dealers gradually developed from independent single-category operation to multi-category integration, continuously improving overall home solutions to provide users with a more convenient and comfortable one-stop whole-home customization experience. The company's net profit for 24-26 is estimated to be 3.51/411/428 million yuan, EPS is 2.28/2.67/2.77 yuan/share, respectively, and the corresponding PE is 10/8/8x.
Risk warning: risk of macroeconomic environment and real estate market fluctuations; risk of rising raw material prices and rising labor costs; risk of increased market competition; risk of dealer sales model, etc.