Description of the event
The company disclosed its 2024 quarterly report: In 2024Q1, the company achieved revenue of 4.378 billion yuan, a year-on-year increase of 30.09%, and net profit to mother of 311 million yuan, an increase of 1.60% year-on-year, after deducting net profit of 315 million yuan.
Incident comments
Core businesses are all expected to achieve high growth, and profitability continues to increase. The company's 2024Q1 revenue is +30.09% year-on-year, and the three core categories are expected to continue the high growth rate for the full year of 2023; in a regional perspective, overseas/domestic revenue of 42.14/164 million yuan respectively, +30.34%/+24.06%, the company operates steadily in mature markets such as North America, Europe, Japan, etc., and actively explores channel platforms and consumer characteristics in key potential markets such as mainland China, all achieved high growth; by channel, the corresponding revenue of online/offline channels reached 31.12/12.66, respectively 100 million yuan, +33.52%/+22.37%, respectively. The independent station business is expected to continue to grow at a high growth rate. On the profit side, the company's Q1 gross margin reached 45.12%, +3.58pct year on year, +1.08pct month-on-month. Internal cost reduction and exchange rate fluctuation factors all contributed. Sales expenses were +38.02% year over year, and sales rate was +1.29pct year over year, mainly due to increased sales platform expenses, marketing expenses, and employee remuneration, corresponding to the increase in gross sales margin of +2.29pct year on year and +1.55pct month-on-month. Under the focused strategy, the company's profitability continued to improve. 2024Q1 management, R&D, and financial rates were +0.98/+, respectively 0.18/-1.67pct, Q1 company's net profit to mother +1.60% YoY, net profit after deduction of non-return to mother was +29.04%, mainly due to large changes in non-recurring profit and loss. In terms of breakdown, government subsidy programs were -0.31 million yuan year over year. Fair value change profit and loss projects resulting from holding (or disposal) of transactional financial assets and liabilities were affected by investment companies' falling market value and exchange rate fluctuations of -61 million yuan year over year.
Continue to focus on the steady development of core business, increase the layout of new products, and consolidate product advantages. In the charging and energy storage category, the company launched 6 new products in the Anker MagGo ultra-fast wireless charging series in January. Among them, the Anker MagGo 3-in-1 wireless charging product is the world's first Qi2 foldable 3-in-1 wireless charger; Energy Storage launched the AnkerSolixC800Plus outdoor power supply with 3 built-in camping lamp modes, integrated charging energy storage and camping lights. This product won the IF International Design Award for its unique design concept. In the smart innovation category, the company launched the EufyX10proOmni all-purpose base station sweeper in February, with a suction power of 8,000 Pa, and the all-purpose base station product was further iterated. In the smart video category, the company launched new products such as SoundCoreC30i headsets and BOOM2 outdoor portable Bluetooth speakers in the wireless audio category: AnkerWork speakers were launched in the office category to meet various needs for daily charging, mobile phone holders, music enjoyment, call pickup, and noise cancellation.
Investment suggestion: As a new generation brand leader in cross-border e-commerce consumer goods with a global layout, the company has built up a strong brand base and perfect channel system, and has the ability to expand and build multiple categories. After the company first took shape, the company chose to focus on strategic categories, continue to increase investment in R&D and technology of strategic core products, and continuously enhance the core competitiveness of the company's products, which helps the company to increase its market share in core categories more efficiently. We believe that the company's current strategic pace is clear, and implementation results are remarkable. It is expected that by focusing on strategic categories and strengthening new product development, it will achieve more sustainable and efficient growth with strong brand strength and perfect channel system support. The company's net profit for 2024-2026 is 19.73, 23.28, and 2,742 billion yuan, respectively, corresponding to PE of 18.79, 15.92 and 13.52 times, respectively, maintaining a “buy” rating.
Risk warning
1. Overseas consumer demand trends have changed greatly; 2. Overseas companies have increased their overseas layout and competition situation.