The company publishes annual reports and quarterly reports

24Q1 revenue was 700 million, an increase of 13%; net profit to mother was 110 million yuan, an increase of 155%. Net profit without return to mother was 100 million, up 157%; 23A's revenue was 3 billion yuan, up -6%, and net profit to mother increased 35%; of these, 23Q4 revenue was 800 million, up 14%; net profit attributable to mother was 50 million, up 50%; net profit from non-return to mother was 70 million, up 126%.

By product, revenue from kitchen and health products in '23 was 2.6 billion, down 7%; gross profit margin was 33%, up 2.7 pct; revenue from beauty and health products was 260 million, up 79%; gross profit margin was 58%, up 3.5pct; by region, overseas revenue in '23 was 1.9 billion, down 10%; gross profit margin was 40%, up 5 pcts; domestic 1 billion, up 2%; gross profit margin of 25%, same increase of 3 pcts.

The 24Q1 company's gross profit margin was 35.5%, an increase of 2 pcts; the net profit margin was 16.4%, an increase of 8 pcts.

Continuously upgrade kitchen and bathroom categories to create smart linked healthy kitchen and bathroom space companies continue to expand and cultivate: showers with various technology-assisted beauty benefits; smart faucets with integrated toothbrushing technology, intelligent temperature-controlled direct drinking with integrated water purification, intelligent multi-system linked intelligent control centers for kitchen water, etc.; various smart multi-functional bathroom cabinets with intelligent interaction with beautiful and healthy facial, hand, oral care products; smart toilet technology with multiple auxiliary detection functions for physical health.

Accelerate the development of beauty and health categories, and actively expand individual category companies in the beauty and health sector to continue to increase R&D investment, promote deeper and broader technological innovations covering SPA beauty showers, beauty devices, dental irrigators, and smart skin meters. In 23 years, they have further expanded the implementation methods and application scenarios of “100 million microbubbles” technology for beauty showers, home skin care technology for facial care, daily deep oral cleaning and testing technology for oral care, scalp hair care technology for head care, and spectral fluoroscopy technology for skin testing.

In addition to sharing customer resources for kitchen and health brands, the Health & Beauty Division's target customers include world-renowned beauty equipment brands, personal care and health brands, comprehensive home appliance brands, beauty and daily chemical brands, etc., and has established cooperative projects with many major customers around the world. In '23, there have been major breakthroughs in the number of conversions for new products, new projects, and the development of new customers.

Actively lay out emerging smart health categories to transform innovative achievements. The company uses endogenous R&D technology sharing platforms to gradually incubate new smart health hardware, accelerate the layout of emerging smart health tracks, and extend smart health hardware to a wider range of fields.

AIOT technology empowers the “IDM hardware platform” strategy

The company's intelligent electronics division provides low-level technical support and application innovation for various categories of products in terms of intelligent technology and spatial interconnection integration, not only providing software and hardware support for individual products, but also empowering multi-category integrated intelligent scenarios or space solutions.

Update profit forecasts and maintain “buy” ratings

The company is guided by the “IDM Hardware Invisible Champion Incubation Platform” strategy. Its main business includes kitchen and bathroom health categories, beauty and health categories, and emerging smart health categories; the IDM (Innovation DesignManufacturer, Innovative Design Manufacturer) model is an upgrade and optimization of traditional ODM. The company uses its own resources to analyze and study regional market conditions and consumer demand trends, and propose product innovation concepts to form a complete product planning plan. The company's net profit for 24-26 is estimated to be 490/598/721 million yuan, EPS is 1.20/1.47/1.77 yuan/share, respectively, and the corresponding PE is 16/13/11X, respectively.

Risk warning: risk of raw material price fluctuations; risk of exchange rate fluctuations; risk of new product launches falling short of expectations, etc.