Incidents:
Jimi Technology revealed its 2024 quarterly report: 24Q1 achieved revenue of 825 million yuan, -6.59% year on year, net profit of 14 million yuan, -72.57% year on year, after deducting non-net profit of 08 million yuan, -80.52% year on year.
The industry boom is still under pressure, and export sales are better than domestic sales
According to Lotu data, in 24Q1, China's smart projection sales volume was +8.7% YoY to 1.443 million units, with sales volume -5.1% YoY to 2.36 billion yuan. Domestic sales are still under pressure; considering that the penetration rate of overseas smart projection is still low, overseas markets are expected to be better. In this context, the company received a portion of deferred revenue in the same period last year, with a high base. The actual terminal growth rate is expected to be corrected. Considering the company's continued expansion of overseas channels, the 24Q1 export sales growth rate is expected to be faster than domestic sales. As the Play5 and RS 10 Ultra products gradually pay off sales, the company's revenue may return to a steady growth channel, and the Internet business is also expected to contribute to an increase.
Gross margin declined & expenses were compressed, and operating profit changed sequentially
The company's Q1 gross margin was -6.8pct to 28.1% year over year, mainly due to low gross margin products; the company's Q1 sales expense ratio was +2.0pct year over year, and continued investment in necessary marketing, management and R&D was -0.8/-0.8pct year on year, which is expected mainly due to improved company operating efficiency. In addition, the company's financial expense ratio declined & other income increased, operating profit margin -5.0 pct to 2.0% year on year, the first correction since 23Q2; when combined with positive income tax contributions, the company's 24Q1 net interest rate compared to the same ratio of net interest rate to mother 4.2 pct.
Cash flow improved year-on-year, leading product layout & overseas progress
The net cash received from the company's operations increased year-on-year, mainly due to a decrease in purchase payments made during the quarter.
In the future, we will see that the multi-price band layout of the company's products continues to improve. On the one hand, the H series price band is expanding, which is expected to meet the needs of different consumers. On the other hand, the cost-effective Play series products and high-end RS series products are arranged in different price bands, each with product features and cutting-edge technology. As the company's multi-price product layout is optimized, overseas channels continue to expand, and profitability is improved, the company's operations are expected to gradually pick up.
Projection leaders are poised to launch, maintaining a “buy” rating
Constrained by the sluggish economy, the company's short-term performance is under pressure, but the company insists on independent innovation, launches a variety of new products, and is expected to bottom out. The estimated 24-26 revenue is 41, 48, and 5.6 billion yuan, +16%/+16%, respectively, and 2.6, 5.0, and 550 million yuan, respectively, +116%/+93%/+12% year over year, EPS is 3.7, 7.2, 8.0 yuan, and the CAGR for 23-26 is +67%. The company was given 30 times PE for 24 years, the target price was 111.30 yuan, and the “buy” rating was maintained.
Risk warning: 1) Domestic and foreign demand falls short of expectations; 2) Raw material prices and exchange rates fluctuate greatly.