The company released its three-quarter report for 2023. 23Q3 revenue was 342 million yuan, +79.81%; net profit of the mother was 0.09 billion yuan, +140.85%; net profit after deduction of the mother was 0.07 billion yuan, +131.24%; gross profit margin 63.86%, year-on-year +10.59pct; net profit margin of 2.63%, +14.23pct; net profit margin after deduction of 2.17%, +14.68pct. 23Q1-Q3 revenue was 942 million yuan, +45.1% yoy; net profit of the mother - 16 million yuan, +71.61%; net profit after deduction - 0.2 billion yuan, +65%; gross profit margin 61.42%, yoy +8.37pct; net profit margin -1.73%, +7.13pct; net profit margin -1.73%, yoy +7.13pct; net profit margin minus -2.31%, +7.27pct.
The popularity of Douyin continued to grow, and Q3 revenue continued to rise. Q3 The company's popular models continue to be popular, and the popularity of the N5 series and the new scalp massage comb 3 continues to be released. According to Jiuqian's data, Q3 Easy's Tmall and JD sales were +33%/+31% year on year, respectively, and the Douyin platform increased nearly 10 times year over year. In September, the company announced a new spokesperson, increased marketing to strengthen drainage, and is optimistic about the company's subsequent revenue recovery trend.
Looking offline, the company is actively improving the direct-operation+distribution channel network, expanding the space for emerging declining markets, and compounding the gradual recovery of offline passenger flow. Offline revenue is expected to continue to recover.
Gross profit improved cost optimization, and Q3 performance turned a loss into a profit. Q3 The company's gross margin improvement continued to expand month-on-month, mainly due to product and channel structure optimization. Benefiting from the scale effect brought about by the improved efficiency of refined online operations and the significant increase in revenue, the company's expenses ratio was significantly optimized during the period. Q3 The company's sales/R&D/management/finance expense ratio was -0.3/-3.1/-2.4/-0.5pct to 53.6%/4.1%/4.2%/-0.4%, respectively. With improved gross margin and cost optimization, the company's net profit margin recovered in Q3 in a single quarter, and it is expected that profitability will continue to recover in the future.
Profit forecasting and ratings: The company is deeply involved in massaging the small home appliance industry, with deep product and brand power accumulation. Post-pandemic strategic adjustments, explosive products and new channel expansion drive online acceleration, expansion of the number of offline stores and structural optimization to help repair, equity incentives demonstrate confidence in performance, and revenue and performance are expected to continue to improve.
The 2023-2025 EPS is expected to be 0.23/1.30/1.77 yuan, and the dynamic PE corresponding to the closing price on November 3 is 166.3x/29.3x/21.7x, respectively, maintaining the “increase in holdings” rating.
Risk warning: New product sales fall short of expectations, repeated outbreaks, and industry competition intensifies.