The company released its 2023 annual report and 2024 quarterly report: in 2023, the company achieved operating income of 5.579 billion yuan, -4.03%; net profit to mother of 802 million yuan, +13.25% year-on-year; net profit after deduction of 783 million yuan, +20.59% year-on-year. 2023Q4 achieved operating income of 1,773 million yuan, +6.86% year over year; net profit to mother of 284 million yuan, +0.83% year over year; net profit after deducting net income of 282 million yuan, +19.20% year over year. 2024Q1 achieved operating income of 1.01 billion yuan, +25.50% year over year; net profit of 141 million yuan, +39.48% year over year; net profit after deduction of 133 million yuan, +36.44% year over year.
E-commerce revenue has grown rapidly, distribution channels have grown steadily, and the two core channels have gone hand in hand. In 2023, the company's e-commerce channel revenue achieved rapid growth of 1,031 billion yuan, an increase of 29.18% over the previous year, mainly due to the company's continuous innovation in resource investment and marketing strategies in major e-commerce channels such as Tmall, JD, and Douyin. We believe that the rapid development of e-commerce retail has provided a new sales channel for the mattress industry, an effective complement to the existing physical store sales model, and at the same time, the mattress industry's sales channels and marketing models are becoming more and more diversified. In 2023, the company's distribution channel revenue was 4.164 billion yuan, an increase of 7.03% over the previous year; by the end of 2023, the company had developed about 5,600 offline specialty stores through distribution channels. In terms of Mousse's main brand, the company supported dealers by optimizing distribution management policies, creating a new product marketing strategy, building Mousse's healthy and environmentally friendly sleep product solutions, and upgrading the smart AI sleep system, effectively improving terminal sales customer order value and store efficiency, stimulating dealers' market combat effectiveness, and empowering store product display and promotion through the refurbishment and upgrading of old stores; V6 refurbished the home business; the company adopted a series of support policies such as decoration subsidies and training and empowerment.
Profit forecast and rating: We expect the company's net profit for 2024-2026 to be 885, 9.72, and 10.97 billion yuan, respectively, up 10.4%, 9.7%, and 12.9% year-on-year. The current closing price corresponds to 2024-2025 PE 15 and 14 times. As a leading enterprise in the furniture field, the company, as a leading enterprise in the furniture sector, gives the company a PE valuation of 18 to 19 times in 2024, corresponding to a reasonable value range of 39.84 to 42.06 yuan, corresponding to 2024 PEG.” “Better than the market” rating.
Risk warning: Raw material prices fluctuate, market competition intensifies, and downstream demand falls short of expectations.