The company released its annual report for the year 23 and the quarterly report for the year 24
24Q1 revenue was 300 million, an increase of 6%; to mother of 60 million, the same increase of 15%; 23A's revenue was 1.7 billion yuan, up 22%, and the mother was 330 million, up 50%; of these, 23Q4 revenue was 570 million, up 53%, and the same increase was 92%. Revenue growth is due to the company increasing its offline channel expansion efforts, diversifying the operation of online channels, and collaborative growth.
The company plans to distribute a cash dividend of 120 million yuan in 2023, with a dividend rate of 37%; by product, the revenue of 23A smart home products was 1.4 billion, the same increase of 26%, the gross profit margin was 53%, and the same increase of 5 pcts; drying rack products were 220 million, an increase of 2%; and the gross profit margin was 44%, with a same increase of 7 pcts.
In the sub-model, offline revenue was 670 million, the same increase of 38%, the gross profit margin was 48%, and the same increase of 5 pcts; online 1 billion (accounting for 60%), the same increase was 14%, the gross profit margin was 54%, and the same increase was 6 pcts.
23A gross margin growth means (1) simultaneous growth in omni-channel sales; (2) On the basis of the 2022 cost reduction measures, the company continued to further promote the implementation of cost reduction and efficiency measures in 2023, optimize production processes, reasonably control costs, and achieve cost reduction and efficiency.
Company 23A sold 1.28 million sets of smart home products, an increase of 18%; sales of clothes rack products were 770,000 sets, a decrease of 2%. By optimizing the product structure, the company increased the promotion and sales of smart home products; smart home product inventory increased by 4.5%, e-commerce revenue increased 6.8%, e-commerce channel delivery time requirements were high, and preparation inventory needed to be increased; drying rack inventory also decreased by 35.92%, which reduced demand for drying rack products and reduced preparation volume in order to reduce inventory backlog.
The company's 24Q1 gross profit margin was 52%, an increase of about 6 pcts, a net profit margin of 19%, and an increase of about 2 pcts.
Continue to increase brand investment and strengthen the image of the middle and high-end
In terms of brand content, strengthen the “professional, intelligent, and technological” attributes of smart clothes dryers, shape brand power with explosive power, and consolidate the first perception of the drying category. Dual category communication enhances the popularity of smart locks and enhances the cost-effective and high-quality attributes of smart locks. In terms of communication strategy, choose “public circle+vertical circle” for dual penetration, dialogue with C-end consumer groups through professionalism, authority, and public word of mouth, strengthen interaction, and focus on user mentality.
Improve the efficiency of channel management, deepen the management of full-link and three-dimensional channel systems, adhere to the omni-channel layout strategy, continuously strengthen the integration of marketing resources, promote online and offline collaborative development, and further build channel potential.
Offline: Deeply cultivate traditional dealer channels, help break the game in leading markets by empowering terminal retail promotion, cover more empty cities through active layout of the sinking market, and consolidate the leading edge.
Online: While stabilizing the market share of traditional e-commerce channels, it also accelerates breakthroughs in new channels such as Douyin and e-commerce. On the one hand, it increases customer stickiness and instant information interaction, and on the other hand, it shapes the brand's youthful image. Continuously improve channel management efficiency through continuous deepening of omni-channel marketing management.
Leading the industry in R&D technology and product innovation
The company has established a complete product system, and product development has transitioned from single product design to smart home new product design, extended design and functional design. At the same time, we continue to develop independently, introduce new products, new materials, new processes and new technologies, and relentlessly develop new products, new materials, new processes, and new technologies, so that the company's level of innovation remains at the forefront of the industry.
Adjust profit forecasts to maintain “buy” ratings
On the basis of in-depth insight and analysis of industry and market changes, the company confirmed the new development strategy and business plan for the next five years. With the vision of a “leading smart home enterprise”, the company focuses on the two core businesses of drying and smart locks, and focuses on building five major leaders: leading technology, leading products, leading brands, leading channels, and leading service. Taking into account the company's 23 and 24Q1 performance growth, sales growth, and operational efficiency improvements, we adjusted the profit forecast. The company's net profit for 24-26 is estimated to be RMB 4.1/4.8/560 million yuan respectively (24-25 years ago, respectively), EPS of 1.01/1.18/1.38 yuan/share, respectively, and corresponding PE of 15/13/11x, respectively.
Risk warning: raw material prices fluctuate; smart product promotion falls short of expectations; fierce market competition, falling product prices, etc.