The company released its 2023 annual report and 2024 quarterly report
24Q1 revenue was 500 million yuan, up 32%; deducted from mother of 60 million, up 47%; deducted less than 50 million yuan, same increase of 54%; revenue growth was mainly due to the recovery of overseas business orders and increased demand in the domestic smart bathroom market; profit growth was mainly due to improvements in gross margin and net margin.
23Q4 revenue of 640 million yuan, +11.3% year on year; return to mother of 40 million, -24.8% year on year; gross profit margin 32.0%, +9.4pct year on year, net profit margin 6.5%, -3.3 pct year on year;
Revenue for 23 years was 2.18 billion yuan, +11.5% year over year; gross profit margin 29.5%, year over year, +4.7pct year on year, net profit margin 9.9%, year-on-year -0.8 pct.
The company insists on actively optimizing the product structure and improving product quality, while vigorously promoting the domestic market expansion of its own brands. Through refined market strategies and product innovation, the company continuously enhances brand awareness and market share, effectively compensates for the decline in overseas orders, and ensures revenue growth.
The company distributed 100 million yuan in 23, with a dividend ratio of 48%; in addition, the company formulated a specific mid-term (including semi-annual reports, three-quarter reports, etc.) cash dividend plan for 2024.
The growth of smart toilets is accelerating, and export sales are expected to recover
By product, revenue from water tanks and accessories in '23 was 620 million, year-on-year, -13.7%, gross profit margin of 25.8%, +1.4pct; smart toilets and covers were 1.27 billion, +25.9%, gross profit margin of 30.1%, +6.5pct year on year; same-level drainage system was 210 million, +17.7% year over year.
Q4 The decline in flush component products narrowed and declined slightly year on year; smart toilet OEM declined slightly year on year; independent brands developed according to expected targets and were growing year over year.
By region, domestic sales in 23 years were 1.65 billion, +17.3% year on year, gross profit margin 29.3%, year on year +4.6 pct; export sales were 540 million, -3.2% year on year, gross profit margin of 30.2%, +5.2 pct year on year. Export OEM is expected to recover in '24.
Clear brand label, offline diving
On the product side, the product matrix is rich, guided by consumer demand. In 23, a light smart series with a price range of less than 2,000 yuan was added, and cost-effective products under 3,000 yuan and high-end products were launched; Li Xueqin's endorsement in the official announcement in '24 is expected to fully amplify the brand's potential and drive out of the market.
On the channel side, the company set up an e-commerce operation team, including platforms such as Tmall, Douyin, and Jingdong, to combine R&D and production advantages and achieve continuous online development through product differentiation; offline, actively expand building materials and home appliance stores to promote store-to-store layout. The company's manufacturing plant is uniformly responsible for warehousing, logistics, after-sales and service installation, and the light-cost model of zero inventory direct sales accelerates the expansion of distribution outlets.
Product strength continues to be upgraded, and new products enhance brand freshness
The new pace of implementation in 2024 will continue to be guided by consumer demand, with the main purpose of improving the consumer experience. New products are designed and developed according to changing trends in product styles and functional requirements in the target market. Technological innovation mainly focuses on health, environmental protection, and hygiene, such as urine testing patents, UVC dynamic water sterilization, etc. The process of promoting new products follows the company's sales strategy, covering new products in every price range. The new products launched will still maintain their advantages in terms of quality, functional stability, and cost performance.
Adjust profit forecasts to maintain “buy” ratings
In 24 years, the company's own brand accelerated the development of new online and offline channels; export foundries are expected to benefit from the recovery of US real estate. According to the 23 annual report, we adjusted our profit forecast. The expected return for 24-26 is 2.9/3.5/40 billion, respectively (the recovery in demand from 24-25 years ago fell short of expectations, etc.). 29/360 million), EPS was 0.7/0.84/0.96 yuan/share, respectively, and the corresponding PE was 19/16/14X, respectively, maintaining a “buy” rating.
Risk warning: Market competition intensifies, raw material prices fluctuate, offline store development falls short of expectations, sea