Performance summary: 2024Q1, the company achieved revenue of 4.38 billion yuan, +30% year over year; net profit to mother was 310 million yuan, +1.6% year over year; after deducting non-current items such as fair value changes and exchange gains and losses, the company deducted net profit of 315 million yuan, +29% year over year. 2024Q1's revenue and non-net profit both exceeded our expectations for full-year growth.
The product upgrade strategy showed results, and gross margin continued to increase: 2024Q1, the company's gross margin/net sales margin was 45.1%/7.5%, +3.6pct/ -1.7pct year-on-year. We believe that the increase in gross margin mainly benefits from ① the company's continuous optimization of the product structure and the launch of more competitive products; ② the increase in revenue share of products such as headphones and security with better operating potential. The 2024Q1 company's sales/management/R&D expenses rate was 22.3%/4.3%/8.5%, +1.3pct/ +1.0pct/ +0.2pct year-on-year. The increase in the sales expense ratio is mainly due to an increase in platform fees, marketing and employee remuneration.
By channel: The growth of offline channels is accelerating. With 2024Q1, the company's online channels achieved revenue of 3.11 billion yuan, +33.5% year-on-year; offline channels achieved revenue of 12.7%, or +22.4% year-on-year. The growth rate of offline channels was +9% compared to the same period in 2023, achieving an overall acceleration.
Continuing to consolidate product advantages, the three core categories of 2024Q1 have new products launched: ① Charging energy storage. The company launched 6 new MagGo ultra-fast wireless charging series products in January; energy storage launched the Anker SOLIX C800 PLUS outdoor power supply with 3 built-in camping lamp modes, which integrates rechargeable energy storage and camping lights. ② In the smart innovation category, the company launched the eufy X10 Pro Omni all-purpose base station sweeper in February, and the all-purpose base station product was further iterated. ③ In the smart video category, the company launched new products such as the Soundcore C30i headphone and BOOM 2 outdoor portable Bluetooth audio in March; the office category launched an AnkerWork speaker, which integrates requirements such as daily charging, mobile phone holder, music enjoyment, call pickup, and noise cancellation.
Profit forecasting and investment ratings: We are optimistic about the long-term development trend of consumer goods going overseas; Anke Innovation is a scarce target with outstanding brand recognition in the field of consumer goods going overseas. The company performed strongly in core growth categories such as charging and energy storage and wireless audio, and there is plenty of momentum for performance growth. We raised the company's revenue forecast for 2024, but considering external factors such as foreign exchange, we still maintained the net profit forecast to the mother at 1.76 billion yuan; fine-tuned the company's net profit forecast for 2025-26 from 21.1/2.48 billion yuan to 21.4/2.48 billion yuan, +9%/22%/16% year over year 2024-26. The closing price on April 29 was 20/ 16/ 14 times the 2024-26 P/E, maintaining the “buy” rating.
Risk warning: industry competition intensifies, exchange rate and freight fluctuations, new products fall short of expectations, etc.