Jimi Technology released its 2023 annual report and 24Q1 quarterly report: the company achieved operating revenue of 3,557 billion yuan in 2023, a year-on-year decrease of 15.77%; realized net profit of 121 million yuan, a year-on-year decrease of 75.97%. Looking at a single quarter, 24Q1 achieved revenue of 826 million yuan, -6.59% year-on-year, and realized net profit of 14 million yuan, or -72.57% year-on-year.
In terms of profitability, the company's 23 annual gross margin was -4.73pp to 31.25% year over year, and -1.56pp; sales/R&D/management/financial expense ratios changed +3.96pp/+1.76pp/+0.87pp/ -0.41pp to 18.13%/10.72%/4.22%/-0.89%, 23. 24Q1 gross margin -6.8pp to 28.05% year-on-year, +0.14pp; sales/development/management/ financial expense ratios changed +2.04pp/-0.76pp/ -0.82pp/ -1.35pp to 17.27%/10.49%/3.56%/-1.5%, 24Q1 net profit margin -4.17pp to 1.73% yoy.
The year-on-year decline in the company's profit was mainly due to price adjustments for some products. At the same time, the company's gross margin and net profit margin declined due to the impact of specific product structures.
Since its establishment, the company has rapidly grown into a leading brand in the domestic projection equipment industry. In 2023, it maintained the first shipment volume in the domestic high-end projector market, with a market share of 33%. Complete projector products make up the majority of the company's revenue. Affected by phased adjustments in domestic projection market demand, 23 achieved revenue of 32.12 billion yuan for the whole year, -18.45% year-on-year, and gross margin was also negatively affected -6.9pct to 27.47% year over year.
Projection accessories products and Internet value-added services achieved revenue of 170 million yuan and 148 million yuan respectively, revenue from the accessories business +8.61% year over year, gross margin +0.83 pct to 49.99% year over year, Internet business revenue +53.1% year over year, and gross margin +0.37 pct to 93.13% year over year.
Investment advice. Since the domestic projection consumer market has yet to recover further, the company focuses on domestic high-end products, and projector revenue is under phased pressure. The company has excellent technological innovation capabilities, sufficient R&D personnel and investment, and a complete online and offline marketing network. Currently, the company's Play series products are in the low-end product lineup. The new flagship product RS 10 Ultra was launched in 24 to meet the diverse scenarios and price needs of consumers. It continues to expand overseas markets with Europe, America and Southeast Asia as the core, and promote iterative low-end array technology to consolidate the high-end market, and there is plenty of room for profit. We expect the company to achieve net profit of 207 million yuan in 24, and give the company a valuation of 35x-42xPE in 2024, with a corresponding reasonable value range of 103.60-124.32 yuan, giving it a “superior to the market” rating.
Risk warning. Risk of outsourcing core components; industry competition increases risk.