The company released a three-quarter report

The company's 24Q3 revenue was 0.76 billion, a decrease of 11.5%; net profit due to mother increased 2% by 0.07 billion and reduced by 59% after deducting 0.05 billion; 24Q1-3's revenue of 2.2 billion decreased by 7%, net profit due to mother of 0.15 billion decreased by 19%, and net profit not attributable to mother of 0.17 billion decreased by 22%.

24Q1-3's gross profit margin of 33.57% decreased by 1.52 pct; net profit margin 6.77% decreased by 1 pct.

“Schuford” leads the digital sleep 2.0 era

Highlights of the Shuford Smart Bed: (1) For difficulty falling asleep before bedtime - can be customized: flexible selection of process modes after the upgrade, customizing massage intensity and sleeping angle to further shorten the user's falling asleep time; (2) Facing loud snoring during sleep - more intelligent snoring reduction with one click: after the upgrade, it can intelligently match different snoring intervention angles according to the severity of snoring, and use strong sensitivity for people with severe snoring and people with sleep apnea syndrome; (3) Early warning of health changes - Early warning and prevention, based on recent sleep data monitoring conditions Schuford Sleep Health Big Data The research center makes personalized health reminders and suggestions for different groups of people, such as students, young people, and the elderly.

Strengthen brand building and continue to empower the “Schuford” brand

The company uses the keen insight and real feedback of online platform users to continuously optimize products. At the same time, it is committed to creating popular content and empowering online and offline drainage. Users can not only easily obtain detailed product information, but also draw inspiration from the personal experiences of celebrities and experts in various fields to enhance confidence in purchasing decisions, thereby deepening their understanding and recognition of the value of the Schuford brand.

Vietnam (Binh Phuc) plant starts construction to release new production capacity

In January 2024, Qisheng Vietnam officially started construction of its Binh Phuc plant. Qisheng Vietnam's Pingfu plant covers an area of 91,000 square meters, with a construction area of 77,000 square meters, and a total investment of about 20 million US dollars. The entire process can produce 0.08 million smart beds every month.

Up to now, Vietnam's Binh Phuc plant has completed the construction of the main steel structure and is expected to be put into production in 2025.

Setting up its own factory in Binh Phuc, Vietnam, helps the company establish a global supply chain system and increase customer stickiness while optimizing the supply chain.

Adjust profit forecasts to maintain “gain” rating

Based on 24Q1-3's performance and uncertainty in the domestic consumption environment, we adjusted our profit forecast. We expect the company's EPS for 24-26 to be 0.5 yuan, 0.6 yuan, and 0.6 yuan (original value 0.55/0.62/0.72 yuan), respectively, and PE 20X, 17X, and 16X, respectively.

Risk warning: international trade policy; raw material price fluctuations; customer concentration risk.