完成SN 集团拆分，九阳分部下滑拖累规模。报告期内公司完成SN 集团拆分，SN 欧洲、北美等非亚太市场拆分，公司保留九阳分部及SN 亚太业务。报告期内公司留存业务23 年营收实现14.3 亿美元，可比口径同比下滑3.2%。向第三方客户销售总额中，九阳分部实现营收10.5 亿美元，同比下滑20.5%；SN 亚太业务实现营收1.5 亿美元，同比增长137.4%；九阳分部下滑主要系国内小家电市场需求仍然疲弱，SN 亚太同比大幅增长主要系日本吸尘器市场的持续性增长，23 年SN 亚太业务中Shark 品牌实现营收1.2 亿美元，同比高增62.5%。23 年国内海外需求环境疲弱，公司仍然表现出优于同业的经营业绩，我们对后续需求复苏后公司长期成长性抱以较高期待。Matters:
The company released its annual report for the year 23, achieving revenue of US$1.43 billion in 23, or -3.2% year-on-year under a comparable scale; achieving net profit of US$70 million from continuing operations, or -37% year-on-year under a comparable scale.
Commentary:
The split of SN Group was completed, and the decline in the Joyang division dragged down the scale. During the reporting period, the company completed the division of SN Group, the division of non-Asia-Pacific markets such as SN Europe and North America, and the company retained the Joyang division and SN Asia Pacific business. During the reporting period, the company's revenue from its retained business reached US$1.43 billion in 23 years, a year-on-year decline of 3.2% in comparable terms. Of total sales to third party customers, the Joyang division achieved revenue of US$1.05 billion, a year-on-year decrease of 20.5%; the SN Asia Pacific business achieved revenue of 150 million US dollars, an increase of 137.4% year over year; the decline in the Joyang division was mainly due to the continued growth of the Japanese vacuum cleaner market. The sharp year-on-year increase in the Japanese vacuum cleaner market was mainly due to the continuous growth of the Japanese vacuum cleaner market. The Shark brand achieved revenue of US$120 million in the SN Asia Pacific business in '23, an increase of 62.5% year on year. The domestic and overseas demand environment was weak in 23 years, and the company still showed superior operating performance than its peers. We have high expectations for the company's long-term growth after subsequent recovery in demand.
The gross profit margin for continuing operations in '23 was 34.1%, a slight decline over the previous year. After the company completed the SN Group split in '23, the gross profit margin of the continuous operation business was 34.1%, down 2.3 pct year on year; looking at the split operating division, Joyang and SN segments achieved gross profit margins of 31.1% and 42.2% respectively, respectively. The decline in gross margin of the Joyang division was mainly related to product restructuring. The increase in gross margin of SN Asia Pacific was mainly affected by the increase in the share of high-end products in the Japanese market. Under the combined influence, the company achieved a continuous operating profit of US$70 million in 23, a year-on-year decline of 37%; under the current product iteration and new product innovation strategy, the profitability of the company's products was not affected by significant price cuts due to the elimination of overseas inventory. The gross margin is expected to continue to improve in the future, and continuous improvement in profitability can be expected.
The spin-off of SN into a US stock listing is conducive to increasing the overall value of SN. During the reporting period, the company completed the division of SN Group. The remaining business was mainly the SN Asia Pacific market business in Japan, Australia and New Zealand. The products were mainly cleaning appliances and small kitchen appliances; after the spin-off was completed; after the spin-off was completed; at the same time, SN Asia Pacific product development and channel development will become the company's main growth gripper. Along with the gradual restoration of domestic demand for small household appliances, the company can recover and grow.
Investment advice: JS Global has shown strong collaborative potential, and regional and category diversification has achieved remarkable results; consumer demand for small household appliances has weakened marginally in 23 years, and an inflection point in overseas demand can be expected. After the split of SN Group, we adjusted our 24-25 net profit forecast to be $7/80 million, and added a 26-year net profit forecast of $90 million. The company has sufficient long-term growth momentum. Based on the DCF method, the adjusted target price was HK$1.7 and maintained a “recommended” rating.
Risk warning: Shipping price fluctuations exceeded expectations, the spread of the epidemic exceeded expectations, and the promotion of new products fell short of expectations.
