23Q3 revenue increased by -2.81%, same increase of income by -22.19%
The company's 23Q3 revenue was 1,298 million yuan, up -2.81% (23Q1 up -3.62%, 23Q2 up 11.02%); $132 million, same increase -22.19% (23Q1 up 11.13%, 23Q2 up 69.26%); deductions were $131 million, same increase -18.36% (23Q1 up 13.47%, 23Q2 up 46.37%) 23Q1-3's revenue was 3.755 billion yuan, up 0.99%; The same increase was 6.17%; after deduction of 389 million yuan, the same increase was 5.42%.
23Q1-3 gross profit margin of 44.68% yoy +2.1pct; net profit margin 11.03% yoy +0.49pct23q1-3 company sales expense ratio 23.15%, yoy+1.8pct; management expenses (including R&D expense ratio) remained flat 8.12% yoy; financial rate -0.18%, yoy+0.28pct, mainly due to increased interest expenses.
Net cash flow from operating activities also increased by 311.99%, mainly due to a decrease in cash for purchasing goods and receiving labor payments; short-term loans decreased by 53.0% compared to the beginning of the period, and increased by 176.5% at the end of the long-term loan period compared to the beginning of the period, mainly due to an increase in bank loans for the company's loan period of more than one year on the reporting date.
The company's core competitiveness mainly focuses on: 1. The company's excellent culture, mechanism and talents; 2. Good brand awareness and reputation; 3. Strong sales network; 4. First-class design and development capabilities; 5. Continuous improvement of comprehensive supply chain management capabilities.
The company's management will continue to expand offline channels, improve online efficiency, strengthen supply chain management capabilities and response speed while steadily advancing main business, enhancing design and research capabilities, and strengthening product marketing and promotion, and improve management efficiency through data systems.
Adjust profit forecasts to maintain “buy” ratings
The company adopts a multi-brand operation strategy to meet the diverse individual needs of consumers and their pursuit of a high-quality lifestyle, and has good brand awareness and reputation. Currently, the company's brands cover the ultra-high-end market (Langwan, Lexington, Uchino), high-end market (Rollei, Rollei Kids) and mass consumer market (LOVO, Dinosaurs). Taking into account the company's performance (23Q1-3 company revenue of 3.755 billion dollars, same increase of 0.99%; net income of 416 million yuan, same increase of 6.17%), we adjusted our profit forecast. The company's net profit for 23-25 is estimated to be 631/708/800 million yuan (previous value was 714/8.43/975 million yuan respectively), EPS is 0.76/0.85/0.96 yuan/share, and corresponding PE is 13/12/11x, respectively.
Risk warning: market competition incentives, risk of changes in raw material prices, revenue falling short of expectations