The company released a performance forecast. 24H1's net profit to mother is expected to increase 55.3%-75.5% 24Q2 net profit of 0.12-0.16 billion, the same increase of 9%-37% (24q1YoY +170%); after deducting non-attributable 0.11-0.14 billion, year-on-year, -2.3% to +25.4% (24q1YoY +325%); 24H1 net profit to mother 0.25-0.28 billion, an increase of 55.3%-75.5%; after deducting non-return of 0.23-0.26 In billion, the same increase was 59.2%-81.7%.
The company has further enhanced the overseas supply chain capabilities of its Thai base, enhanced its local service capabilities in North America, and gradually developed diversified business models such as overseas retail and cross-border e-commerce, and continued to expand its overseas market share.
The company digs deep into inventory and expands incremental growth. By focusing on customer service, strengthening product iterative upgrades, and accelerating the expansion of categories such as kitchen and bathroom faucets and water purification, and increasing customer penetration, we expect steady revenue growth in 24Q2.
In terms of profit, under the FOB model, the impact of shipping costs is limited. The company accelerates digital transformation, aims to multiply human efficiency, promote digital technology and digital intelligent manufacturing to create value, improve overall quality and efficiency, and enhance profitability.
Category+channel expansion, smooth increase in overseas share
The company focuses on customer service in the North American market, strengthens product iterative upgrades, increases the penetration rate of major customers in hardware, water purification and other categories, and continues to increase its share; in addition, North America continues to empower growth by developing multiple channels such as store+wholesale, and Europe's expansion of new customer resources.
Global layout of the industrial chain to ensure supply security
Currently, the company has been steadily releasing the first phase in Thailand, with a capacity utilization rate of 60%. The second phase (planned production capacity of 1.2 billion yuan) is expected to be put into operation in 24Q4, and the third phase of land resources is also reserved.
Adjust profit forecasts to maintain “buy” ratings
We estimate that the company's net profit for 24-26 will be 0.503/0.577/0.668 billion yuan, EPS will be 1.12/1.29/1.49 yuan/share, respectively, and the corresponding PE will be 11/10/8X, respectively.
Risk warning: Customer development falls short of expectations; overseas demand recovery falls short of expectations; interest rate cuts fall short of expectations; industry competition intensifies; performance forecasts are only preliminary estimates. The specific financial data is based on the company's official 24-year report.