The company released its 2023 annual report and 2024 quarterly report: in 2023, the company achieved operating income of 1,688 million yuan, a year-on-year increase of 22.16%; realized net profit of 327 million yuan, an increase of 49.71% over the previous year; realized net profit of 323 million yuan after deduction, an increase of 46.18% over the previous year. 2023Q4 achieved revenue of 572 million yuan, an increase of 53.05% year on year; realized net profit of 89 million yuan, an increase of 92.11% year on year; realized net profit after deduction of 94 million yuan, an increase of 110.08% year on year. In 2024Q1, the company achieved revenue of 292 million yuan, an increase of 5.73% year on year; realized net profit of 56 million yuan, an increase of 15.07% year on year; realized net profit of 55 million yuan after deduction, an increase of 15.75% year on year.
Continuous product iteration and innovation to enhance product competitiveness: 1) Smart home products: In 2023, the company's smart home products achieved revenue of 1,433 billion yuan, an increase of 26.39% over the previous year. In 2023, the Blue Whale power system of the clothes dryer independently developed by the company will be fully industrialized to achieve leading load bearing parameters in the industry and effectively enhance product competitiveness. Furthermore, through continuous iterative innovation of intelligent drying products and continuous optimization of the product structure, the company will continue to increase the promotion and sales of smart home products. 2) Clothes rack products: Achieved revenue of 216 million yuan for the full year of 2023, an increase of 1.58% over the previous year.
Offline business is growing steadily, and new e-commerce channels are being rapidly deployed: 1) Offline channels: In 2023, the company achieved revenue of 382 million yuan in Southern China, an increase of 22.50% year on year; North China achieved revenue of 283 million yuan for the full year of 2023, an increase of 32.42% over the previous year. 2) E-commerce channel: Achieved revenue of 1,006 billion yuan for the full year of 2023, an increase of 19.38% over the previous year. Through a global integration approach, the company maintains the steady growth of existing platforms and rapidly lays out new e-commerce sales platforms.
Profit forecast and rating: We expect the company's net profit for 24-26 to be 3.98, 4.77, and 546 million yuan, respectively, up 21.5%, 19.9%, and 14.4% year-on-year. The current closing price corresponds to the 24-25 PE of 15 and 12 times. As a leading smart furniture company, refer to the company's 20 to 21 times PE valuation in 2024, corresponding to a reasonable value range of 19.67 to 20.66 yuan, corresponding to 0.93 to 0.98 times PEG in 2024, giving it a “superior to the market” rating
Risk warning: Market demand falls short of expectations, industry competition intensifies, and new business development falls short of expectations.