Incident: The company released its 23rd annual report, and achieved operating income of 8.19 billion yuan, a year-on-year increase of 25.8%; net profit to mother of 260 million yuan, a year-on-year decrease of 26.6%, a year-on-year net interest rate of 3.2%, a year-on-year decrease of 2.2 pct; net profit after deducting non-return to mother of 230 million yuan, a decrease of 27.3% year on year; net profit after deducting non-return to mother of 2.9%, a year-on-year decrease of 2.0 pct.
In a single quarter, 23Q1-24Q1 achieved revenue of 16.9/19.5/21.3/24.2/2.35 billion yuan, respectively, up 20.8%/25.7%/27.1%/28.3%/39.0% year-on-year. Net profit attributable to mother was 0.8/1.8/1.0/ -1.0 billion yuan, a year-on-year change of +7.5%/+32.0%/+21.3%/-269.6%/+31.2%.
The consolidated gross margin in '23 was 23.8%, up 2.0pct year-on-year. The cost rate for the period was 16.4%, an increase of 0.7 pct over the previous year. Among them, the sales/management/R&D/finance rate was 8.2%/5.1%/2.7%/0.3%, respectively, with a year-on-year change of +0.4pct/+0.2pct/-0.3pct/+0.4pct. The 24Q1 consolidated gross margin was 24.8%, a year-on-year decrease of 0.1 pct. The cost rate for the period was 19.5%, a year-on-year decrease of 0.2 pct. Among them, the sales/management/R&D/finance cost rates were 13.4%/3.6%/2.0%/0.6%, respectively, with a year-on-year change of +3.7pct/-1.5pct/-0.8pct/-1.6pct.
By product, office furniture/upholstered furniture/panel furniture/new material flooring/other products achieved revenue of 34.7/12.9/11.2/14.9/80 billion yuan respectively, a year-on-year change of +3.6%/+3.0%/-17.7%/+557.2%/+158.7%. By sales model, OEM&ODM/OBM achieved revenue of 48.2/3.36 billion yuan respectively in '23, an increase of 29.1%/21.3% year-on-year. By region, overseas/domestic revenue in '23 was 66.4/1.53 billion yuan respectively, a year-on-year change of +34.0%/-0.6%.
Profit forecast and rating: We expect the company's net profit for 24-25 to be 54/660 million yuan, an increase of 106%/22% year-on-year, and the current closing price corresponding to PE is 12/10 times, respectively. Referring to comparable companies, PE was given 13-15 times in 24 years, and the corresponding reasonable value range was 50.55-58.33 yuan/share, giving it a “superior to the market” rating.
Risk warning: risk of a sharp rise in raw material prices, risk of market competition, risk of fluctuations in the real estate industry, risk of dealer management.