Incident: The company released its 23-year performance report, achieving revenue of 14.647 billion yuan in 23, +6.94% year-on-year; achieving net profit of 977 million yuan, +1.62% year-on-year. Among them, 23Q4 achieved revenue of 3.89 billion yuan, +30.7% year-on-year; realized net profit of 240 million yuan, or +104.9% year-on-year.
On the revenue side, the company actively explores the market, and overall revenue has achieved steady growth. Among them, the overall demand for small household appliances from overseas has gradually been restored, and the increase in export orders has driven revenue growth. Looking at domestic and foreign sales, the company's export revenue in '23 was 10.81 billion yuan, +11.08% year on year; domestic sales revenue was 3.84 billion yuan, -3.22% year over year.
Among them, Q4 export revenue was 2.66 billion yuan, +53% year over year; domestic sales revenue was 1.23 billion yuan, +0.3% year over year.
On the profit side, the company has successively adopted cost reduction and efficiency measures such as technological innovation and production efficiency improvement. Product profitability has gradually been restored, and the company's overall competitiveness has been continuously improved. Due to fluctuations in the exchange rate of RMB against the US dollar, exchange gains in financial expenses in 2023 decreased by about $154 million compared to the same period last year, while total investment losses in forward foreign exchange contracts/options contracts and losses due to changes in fair value increased by about 5 million yuan over the same period of the previous year.
Investment advice: The rise in export orders led to an increase in the company's total revenue. Although domestic sales performance is weak, it is expected to gradually recover at a low base. According to the company's performance report, we have appropriately raised the export revenue growth rate. The company's net profit for 23-25 is estimated to be 9.8/11.3/1.24 billion yuan (previous value 9.8/11.17/1.22 billion yuan), and the corresponding PE is 11.4x/9.9x/9.0x, respectively, maintaining a “buy” rating.
Risk warning: Sales of new domestic products fall short of expectations, growth in export orders falling short of expectations, risk of market competition, risk of rising raw material costs, risk of exchange rate fluctuations. The express report data is only preliminary accounting data. The detailed and accurate financial data is subject to the audited 2023 annual report officially disclosed by the company.