内销外销两开花，营收增速亮眼。1）分地区看，24H1 境内/境外市场实现营业收入4.7/15.8 亿元，同比+38.8%/+32.1%。内销围绕产品、营销、渠道三方面协同发力，市场精细化运营水平提升，带动营收快速增长；外销配合新客户、新渠道、新产品落地，订单快速爬坡。2）分产品看，24H1 办公椅/沙发/按摩椅椅身/休闲椅/ 其他产品分别实现营收19.8/3.4/1.0/0.2/6.3 亿元， 同比+39.9%/+34.2%/+0.4%/+29.7%/+104.7%，分部间抵消10.2 亿元。其中，沙发和办公椅毛利率略承压（同比-5.7/-3.3pcts），按摩椅椅身/休闲椅/其他产品毛利率呈现上升趋势（+1.1/+6.3/+10.8pcts）。Matters:
The company released its 2024 mid-year report. In the first half of the year, the company achieved revenue/net profit attributable to mother/ net profit deducted from mother 2.05/0.13/0.13 billion yuan, yoy +33.6%/-11.0%/+2.0%. In the second quarter of a single quarter, the company's current revenue/net profit attributable to mothers/net profit after deducting non-attributable net profit was 1.2/0.08/0.08 billion yuan, +42.4%/-7.3%/-5.8% year-on-year. The company formulated a semi-annual dividend plan for 2024, with a cash dividend of 0.16 yuan (tax included) per share, with a dividend rate of 41.95%.
Commentary:
Domestic and export sales have blossomed, and the revenue growth rate is impressive. 1) By region, the 24H1 domestic/overseas market achieved revenue of 0.47/1.58 billion yuan, or +38.8%/+32.1% year-on-year. Domestic sales revolve around the three aspects of product, marketing, and channel collaboration, improving the level of refined market operation and driving rapid revenue growth; export sales cooperated with new customers, new channels, and the launch of new products, and orders climbed rapidly. 2) By product, 24H1 office chair/sofa/massage chair body/leisure chair/ other products achieved revenue of 19.8/3.4/0.1/0.02/0.63 billion yuan, compared with +39.9%/+34.2%/+0.4%/+29.7%/+104.7%, offset 1.02 billion yuan between segments. Among them, the gross margin of sofas and office chairs was slightly under pressure (-5.7/-3.3pcts year-on-year), and the gross margin of massage chair body/leisure chairs/other products showed an upward trend (+1.1/+6.3/+10.8pcts).
Profit margins declined under a high exchange base, and fee rate control was good. The 24Q2 company achieved a gross profit margin of 23.4%, -0.3 pcts/month-on-month +1.3 pcts, a month-on-month improvement, mainly due to the increase in revenue scale in the second quarter leading to an improvement in profitability. On the cost side, the company achieved a sales/management/financial expense ratio of 7.1%/4.8%/-0.8% in 24Q2, +0.5/-0.01+4.5pcts compared to the same period. Among them, the increase in the sales expense ratio was mainly due to the company increasing investment in domestic and foreign sales markets, and the increase in the financial expense ratio was mainly due to a decrease in exchange contributions. Taken together, the company achieved a net interest rate of 7.0% to mother in the second quarter, -3.7 pcts year on year.
Independent brands can be expected to grow, and overseas OEM continues to gain strength. 1) Independent brand: On the product side, the company focuses on “supporting” value anchors, continues to innovate products, and continuously launch flagship products. On the marketing side, the company implemented the “flagship hit” marketing strategy, optimized the marketing structure, improved investment efficiency, and continued to increase brand influence.
On the channel side, online, we focus on the three major platforms of Tmall, JD, and Douyin, accelerate the construction of retail channels offline, continue to expand large-scale supermarket channels, and continuously improve the channel network. 2) Overseas OEM: Orders from many important channels such as Costco and Sam's and major customers are climbing rapidly, which is expected to support annual performance growth. In terms of overseas production capacity, the current construction of the Vietnam Phase III project plant and the production capacity of the Romanian production base is climbing. It is expected that new categories, new customers, and new businesses will be successfully implemented, driving rapid overseas revenue growth.
Investment advice: Optimistic about the company's “number one number two” market strategy. Independent brand building is also worth looking forward to, maintaining the “recommended” rating. Considering that exchange disturbances are dragging down net interest rates, we slightly lowered our profit forecast. We expect net profit to mother of 0.321/0.392/0.477 billion yuan for 24/25/26 (0.33/0.405/0.488 billion yuan 24-26 years ago), and the corresponding PE is 10/8/7X. Referring to the absolute valuation method, the target price was 11.7 yuan/share to maintain the “recommended” rating.
Risk warning: Risk of international trade friction, US interest rate cuts and real estate recovery falling short of expectations, fluctuating raw material prices, falling short of expectations, etc.
