The company released a three-quarter report

The company's 24Q3 revenue was 1.7 billion, down 5.6%, and the revenue decline narrowed slightly from month to month; net profit to mother decreased by 105%, net profit after deducting -0.012 billion by 111%; 24Q1-3 company revenue 4.8 billion decreased by 8%, net profit due to mother 0.03 billion decreased 89%, and net profit to mother decreased by 100% after deducting 0.001 billion; 24Q1-3 company's gross profit margin of 26.42% decreased by 3 pcts Mainly due to the continued slowdown in consumer market demand, product prices continued to decline; 24Q1-3 net interest rate decreased by 0.61% to 4.82pct; due to increased depreciation and amortization and reduced revenue, the cost rate increased during the 24Q3 period, and the 24Q1-3 fee rate also increased by 2.42%;

In terms of channels, the export revenue of 24Q1-3 was 0.258 billion, an increase of 146.8%; in terms of products, the sales volume and sales revenue of light smart toilets increased.

Continue to use smart toilets as a key development category, and promote the joint development of light intelligence and full intelligence 24Q1-3 Light intelligence has increased markedly. The performance of full intelligence is relatively weak. This also has a certain relationship with the consumer environment and consumers' cautious attitude towards consumer spending.

In the future, light intelligence will continue to develop to meet the needs of more scenarios, such as public bathrooms, second home bathrooms, and intelligent hotels.

For fully smart toilets, as consumers' pursuit of a high quality of life increases, and the promotion of national policies and the continuous introduction of consumer stimulus policies, there is still a high level of room for market development. Therefore, the company will continue to use smart toilets as a key development category to promote the joint development of light intelligence and full intelligence.

Multi-dimensional implementation of trade-in business

The company continues to explore various aspects of the product side, channel side, and service side to promote the trade-in business. On the one hand, it continues to develop products that meet the needs of customers who remodel old houses, such as products suitable for low water pressure. At the same time, it uses local lifestyle service platforms and various methods such as live streaming and deepening cooperation with foremen, designers, etc., to attract traffic to stores and further increase the development of declining channels such as community stores, so that products can reach consumers more quickly.

In terms of service, the company provides dealers with a full range of refurbishment service training and support from infrastructure construction to professional construction, continuously improving dealers' basic renewal capabilities such as “demolition, installation, surface line and waterway circuit repair, etc.”, and cooperates with a third party to establish “demolition, waterproofing, paving, dark line waterway circuit transformation, etc.”; at the same time, it strengthens dealers' renewal service capabilities and sink channel service capabilities to provide consumers with a “delivery+disassembly+installation” one-stop worry-free service to meet the increasing demand for partial upgrading or full bathroom replacement of old houses.

Adjust the profit forecast and lower it to the “Overweight” rating

Based on the 24Q1-3 performance, there is uncertainty about the current macro-consumption environment; we adjusted the profit forecast and estimated that the company's EPS for 24-26 will be 0.1 yuan, 0.1 yuan, and 0.2 yuan/share (original values were 0.5/0.6 and 0.7 yuan/share), respectively, and PE will be 73X, 60X, and 50X, respectively.

Risk warning: Channel expansion falls short of expectations; production capacity release falls short of expectations; risk of falling inventory prices; light intelligence and full intelligence promotion and trade-in business or falling short of expectations.