Company releases 2024 semi-annual report
24Q2: The company's revenue was 0.7 billion, a decrease of 15.0%; the return was 0.04 billion yuan, a decrease of 59.0%; net profit after deduction was 0.06 billion yuan, a decrease of 30.8%;
24H1's revenue was 1.46 billion, a decrease of 4.3%; net profit to mother was 0.09 billion, a decrease of 30.1%; net profit after deduction was 0.12 billion yuan, an increase of 19.0%.
24H1's gross profit margin was 32.9%, or 0.5 pct. On the cost side, the 24H1 sales rate was 9.8%, down 3.9 pct; the management rate was 9.5%, down 0.3 pct; the financial rate was -3.1%, up 0.5 pct; and the R&D rate was 5.1%, up 0.3 pct. The company's 24H1 net profit margin was 5.8%, down 2.1pct.
Strengthen brand building and continue to empower “Schuford”
Shuford Smart Bed opened a new marketing chapter on popular platforms, focusing on female consumers, and carefully selected cross-border celebrities such as Yao Anna, Xi Mengyao, and Yi Neng Jing to cooperate. These stars span the tech, business, sports, fashion, and entertainment industries. The purpose of the cooperation is to use the star effect to stimulate the activity of specific communities, and form a unique marketing cycle for subsequent transformation into a brand KOC planting group.
Vietnam plant starts construction, continues to release new production capacity
In January 2024, the company officially started construction of its Binh Phu factory in Vietnam; the factory covers an area of 91,000 square meters, with a construction area of 77,000 square meters, with a total investment of about 20 million US dollars, and can produce 0.08 million smart beds every month. Up to now, the main steel structure construction has been completed at the Binh Phu Plant in Vietnam, and production is expected to be put into operation in 2025. The company's Vietnam factory helps establish a global supply chain system, optimizing the supply chain while increasing customer stickiness.
Increase the stickiness of major foreign customers and drive business growth
The company's major overseas customer Tempur Sealy International, Inc. (Tempur Sealy International, Inc.) visited the company's domestic factory in March 2024; Sam's club buyer team visited the domestic factory in April 2024.
Customer field visits help customers to have a more comprehensive and realistic understanding of the company and factory situation, and also help the company show its ability and image.
In the future, the company will continue to invite more customers to visit the factory for product and commercial negotiations, promote the process and implementation of various projects, maintain business relationships with major customers, and truly achieve comprehensive customer service.
Broaden overseas sales channels and continuously accumulate high-quality customer resources
The company actively participates in various domestic and international exhibitions, directly contacts potential customers, and promotes products and services to them.
Overseas, the company has jointly developed overseas markets through close cooperation with well-known local brands, further broadening the company's sales channels and customer resources.
Adjust profit forecasts to maintain “gain” rating
With excellent product performance and rich sales channels, the company has gradually become a pioneer and leader in the global smart electric bed industry, using developed markets such as the United States as a business breakthrough. Based on the company's 24H1 performance, we adjusted our profit forecast. The company's revenue for 2024-26 is 3.26/3.59/3.99 billion yuan (original value was 3.57/4.04/4.66 billion yuan); net profit to mother is 0.2/0.22/0.26 billion yuan (original value was 0.27/0.33/0.38 billion yuan), and the corresponding PE is 16/14/12X, respectively.
Risk warning: Increased industry competition; decline in overseas demand; rising sea freight rates; fluctuating exchange rates; changes in raw material prices; declining share of core customers, etc.