费率端：2023Q4 销售/管理/研发/财务费率为6.63%/1.87%/3.59%/-0.22%，同比变动-0.53pct/0.18pct/0pct/-0.72pct。财务费用优化主要系利息收入增加及汇兑损失减少。净利率： 23A/23Q4 净利率同比+1.82/3.09pct 至3.19%/5.00%。净利率主要受到其他收益、公允价值变动收益和所得税影响，分别占净利润比例为35%、28%、13%，同比+9/+10/-8pct。其他收益主要为新增先进制造业增值税加计抵减，公允价值变动收益主要为远期外汇合约及其他非流动金融资产评估收益。Event: The company released its 2023 annual report. In 2023, the company achieved total operating income of 24.248 billion yuan, an increase of 19.95% year on year; realized net profit of 741 million yuan, an increase of 203.04% year on year; net profit after deducting non-return to mother was 749 million yuan, an increase of 629.43% year on year. Among them, 2023Q4's total revenue for a single quarter was 5.08 billion yuan, up 4.96% year on year; net profit to mother was 242 million yuan, up 194.22% year on year, and net profit from non-return to mother was 236 million yuan, up 869.63% year on year. The total cash dividend for 2023 was 309 million yuan, with a dividend ratio of 41.7%.
Export revenue drove overall growth, and the net interest rate for domestic and foreign air conditioning sales increased markedly. By product: Revenue from refrigerators, air conditioners, washing machines, small household appliances and kitchen and bathroom increased by 18.57%, 18.24%, 76.37%, and 15.16% in '23. The net margin for domestic air conditioners increased by 1 pct to 2.87%, and the net margin for export air conditioners also increased by 1 pct to 4.29%. Subregion: Domestic and foreign revenue increased by 10.80% and 46.52% in 23 years.
Non-recurring income led to an increase in net interest rates. Gross profit margin: 23A/23Q4 gross margin +0.24/-1.28pct year-on-year to 13.94%/15.82%. The gross margin of 23A refrigerators and air conditioners was +1.86% and -1.40% year-on-year.
Rate side: 2023Q4 sales/management/R&D/finance rate was 6.63%/1.87%/3.59%/-0.22%, year-on-year change -0.53pct/0.18pct/0pct/-0.72pct. Financial cost optimization is mainly due to an increase in interest income and a reduction in exchange losses. Net profit margin: 23A/23Q4 net margin +1.82/3.09pct year over year to 3.19%/5.00%. Net interest rates are mainly affected by other income, income from changes in fair value, and income tax, accounting for 35%, 28%, and 13% of net profit, respectively, +9/+10/-8pct. Other earnings are mainly value-added tax deductions for new advanced manufacturing industries, and income from changes in fair value is mainly assessed income from forward foreign exchange contracts and other non-current financial assets.
Inventories and contract liabilities grew rapidly, and the sale of goods received healthy cash. Judging from the balance sheet, as of 23Q4, the company's inventory was 18%/12% year over year, and contract debt was 13%/31% year over month, and the company's “profit reservoir” was sufficient; judging from the cash flow statement, the cash received from 23Q4 sales products also increased 18%, and the sales of products were in good condition.
Profit forecasting and investment advice. The company's state-owned enterprise reforms have improved quality and efficiency, and are optimistic about business continuity. We expect the company to achieve net profit of 906/10.53/1.95 billion yuan in 2024-2026, an increase of 22.3%/16.2%/13.4% year-on-year, and maintain the “increase” investment rating.
Risk warning: Real estate sales recovery falls short of expectations, weak terminal consumer demand, risk of fluctuating commodity prices, risk of increased market competition, and risk of exchange rate fluctuations.