On the evening of April 26, 2024, Xinbao Co., Ltd. released its 2023 annual report and 2024 quarterly report.
The performance is in line with the previous forecast. The company achieved annual revenue of 14.6 billion yuan, an increase of 6.9% over the previous year, achieved net profit of 980 million yuan, a year-on-year increase of 1.6%, and realized net profit without return to mother of 1.0 billion yuan, a year-on-year decrease of 0.5%. Among them, Q4 achieved operating income of 3.89 billion yuan, an increase of 30.7% year on year, and realized net profit of 240 million yuan, an increase of 105.1% year on year. The company now plans to pay a cash dividend of 4 yuan for every 10 shares to all shareholders. There is no transfer. The corresponding dividend rate is 34%, and the corresponding dividend yield is 2.2%.
The company released its 2024 quarterly report. In the first quarter, the company achieved operating income of 3.47 billion yuan, a year-on-year increase of 22.8%, achieved net profit of 170 million yuan, an increase of 24.7% over the previous year, and realized net profit without deduction of 210 million yuan, an increase of 131.8% over the previous year.
Let's look at it by business. 1) On the domestic sales side, the company's domestic sales business achieved revenue of 900 million yuan in the first quarter, an increase of 7% over the fourth quarter of 2023. The overall demand performance of the domestic small household appliance market was lackluster in the first quarter. According to Aowei Cloud channel monitoring data, in January-January, the domestic small household appliance industry (including rice cookers, induction cookers, electric kettles, electric pressure cookers, soy milk machines, cooking machines, juicers, frying machines, health pots and electric steam cookers) saw a slight decline of 0.3% year-on-year. Improvement. According to Hisakian statistics, the first quarter The Cat+JD+ Douyin platform Baishengtu GMV increased 9.9% year on year, expanding the growth rate from 2024Q4; Dongling GMV increased 15% year on year, and the growth rate rectified; Morphy's sales pressure was still high, and GMV fell 25% year on year in the first quarter. We speculate that this is mainly due to the relatively high pressure on demand from middle and high-end brands; 2) On the export side, the company's export sales business achieved revenue of 2.57 billion yuan in the first quarter, an increase of 30% year on year.
On the profit side, the company's gross margin in the first quarter was 21.9%, which remained stable year on year. Considering that the increase in the share of the company's export revenue in the first quarter would have a structural drag on the overall gross margin, we estimate that the company's actual gross margin increased year on year. On the cost side, the company's expense ratio for the first quarter was 12.3%, with a significant year-on-year optimization of 3.4 pct. Among them, sales/management/ R&D expenses were optimized by 0.3 pct/ 0.8 pct/ 0.3 pct year on year, revenue growth effectively diluted the cost ratio, and the financial expense ratio decreased by 2.0 pct year on year, mainly due to an increase of 78.86 million yuan year-on-year in exchange revenue. Furthermore, the company's total investment income and fair value change income decreased by 77.46 million yuan year-on-year in the first quarter, mainly due to losses in exchange rate hedging instruments, and the overall exchange rate impact remained neutral. Taken together, the company's net interest rate increased slightly by 0.1 pct to 5.5% year-on-year. In terms of cash flow, the company's net operating cash flow for the first quarter was -220 million yuan, mainly affected by a sharp increase of 34% over the same period last year in cash purchased for goods and services.
Profit forecasting and investment ratings. We expect the company's revenue for 2024-2026 to be RMB 161 billion, RMB 17.8 billion and RMB 19.6 billion respectively, up 10% year on year. The net profit due to mother is estimated to be RMB 1.13 billion, RMB 1.30 billion and RMB 1.49 billion respectively, up 15% year on year, corresponding PE of 13.3 times, 11.5 times and 10.1 times respectively, maintaining the “Highly Recommended” investment rating.
Risk warning: Market demand falls short of expectations, and industry competition is intensifying.