The company released 2023 performance forecast
23Q4 achieved a return of 13.38 million to 63.38 million, turning a loss into a profit.
In '23, it returned to mother of 200,000-250 million, an increase of 680%-875%.
The increase in performance was mainly due to steady growth in the company's export sales and increased domestic market contribution; in addition, benefiting from product structure optimization and declining exchange rates and shipping costs, gross margin increased year-on-year.
Q4 The pace of orders is slowing down, and new customers and new markets are expanding steadily
23Q1-3 orders in the US market increased 10% year on year, and the company accelerated the expansion of new customers; the growth rate of 23Q1-3 orders in the European market exceeded 70%, and it is expected that emerging markets will continue to contribute to the increase.
In addition, the company set up an online sales subsidiary in overseas markets. 23H1 cross-border e-commerce sales volume is about 30 million US dollars, and growth has remained steady.
Domestic: Pay attention to the increase in the popularity of “Schuford”. The initial results of brand building were 23Q1-3. The company is committed to cultivating the “Schuford” independent brand. Currently, the number of offline stores has exceeded 100. It continues to promote investment through large-scale exhibitions and small furniture fairs, cooperating with the Huawei Hongmeng system to expand its influence, and the brand effect is gradually showing.
Global layout of production capacity, Mexican factory helps market development
The company's production capacity layout is global, and it has factories in China, Vietnam, and Mexico. Among them, the Vietnamese factory has an annual assembly production capacity of 600,000 sheets, and currently basically maintains full production capacity; the Mexican factory has an annual assembly production capacity of 500,000 sheets, and production capacity still has room to climb. The global layout of the industrial chain is conducive to timely response to customer needs, guarantee product delivery, and avoid the impact of tariffs.
Maintain profit forecasts and maintain “increase holdings” ratings
The company focuses on smart electric bed racing, and is committed to increasing overseas market share, and domestic independent brand building is progressing steadily. We expect net profit to be 233/268/315 million yuan respectively in 2023-25, corresponding to PE of 17/15/12X, respectively, maintaining the “increase” rating.
Risk warning: Market competition, customer concentration, fluctuations in international market demand, exchange rate fluctuations, international trade policy, changes in the international trade environment, fluctuations in raw material prices, damage to brand image, and risk of knowledge infringement; the performance forecast is only a preliminary estimate. The specific financial data is based on the company's official 2023 annual report.