Performance summary: the company publishes its annual report 2023 and quarterly report 2024BurgertimegameIn 2023, the company achieved revenue of 156Burgertimegame90 million yuan, + 11.5% compared with the same period last year; realized net profit of 3.87 billion yuan, + 21.4% year-on-year; and deducted non-net profit of 3.7 billion yuan, + 27.5% year-on-year. In a single quarter, 2023Q4 achieved revenue of 4.09 billion yuan, + 13.3% year-on-year; net profit of 1.06 billion yuan, + 27.8%; and net profit of 1.08 billion yuan, + 36.4% of the same period last year. 2024Q1 achieved revenue of 3.8 billion yuan, year-on-year + 14.1%; net profit of 930 million yuan, + 26.3%; and deduction of non-return net profit of 820 million yuan, + 26.7%. In 2023, the company plans to distribute a cash dividend of 3.1yuan (including tax) per share to all shareholders, with a total cash dividend of 2.76 billion yuan, with a cash dividend rate of 71.4%. At the same time, the total share capital of the company will be 1.29 billion shares with a capital reserve fund for all shareholders. Operational efficiency is improved and profitability is continuously optimized. In 2023, the company's overall gross profit margin was 43.2%, year-on-year + 5.2pp. Among them, 2023Q4 gross profit margin is 46.8%, year-on-year + 5.8pp. Thanks to the downward price of raw materials, as well as the company to promote digital change, strengthen cost control, improve operational efficiency, various categories of gross profit margin improved to varying degrees. In terms of products, the gross profit margin of the company's electrical connection products in 2023 is 40.9% (+ 6.6pp); the gross profit margin of intelligent electrical lighting products is 45.8% (+ 3.9pp); and the gross profit margin of new energy products is 34.2% (+ 1.8pp). In terms of expense rate, the company's sales expense rate, management expense rate, financial expense rate and R & D expense rate in 2023 are 6.8%, 4%, 0.7%, 4.3%, respectively, compared with the same period last year + 1.1pp/+0.4pp/+0.1pp/+0.1pp. The company has increased its marketing efforts to further enrich the connotation of the brand and improve the rate of sales expenses. Overall, the company's net interest rate is 24.7%, year-on-year + 2pp. 2024Q1 gross profit margin is 42.2%, year-on-year + 5ppp; from the expense point of view, the total expense rate is 15.5%, year-on-year + 1.9pp, in which the sales expense rate / management expense rate / R & D expense rate / financial expense rate are 7.4%, 4.2%, 4.5%, 0.7%, respectively, year-on-year change + 1pp/+0.2pp/+0.7pp/-0.1pp. The company's advertising continues to increase, further strengthening the brand reputation. 2024Q1 net interest rate is 24.4%, year-on-year + 2.4pp, profitability continues to improve. Traditional business is growing steadily, while emerging business is expanding rapidly. In terms of products, 1) the power connection business continues to carry out product innovation and upgrading around consumer demand, strengthen the new image of fashionable and high-end brands, and achieve steady growth, with annual revenue of 7.39 billion yuan, an increase of 4.8% over the same period last year. 2) the revenue of intelligent electrical lighting products reached 7.9 billion yuan in the whole year, an increase of 15.4% over the same period last year. The company is committed to creating an intelligent front-loading electricity product ecology with intelligent headless lights as the core, and is determined to promote the reform of the new retail mode of offline flagship stores + online drainage, which overcomes the challenge of deep adjustment of the real estate industry. 3) the annual revenue of new energy products reached 380 million yuan, an increase of 148.6% over the same period last year. The company's new energy business rapidly enriched its product line, established an omni-directional comprehensive competitive advantage in technology, supply chain and channels, and achieved great-leap-forward growth. Multi-channel coordinated development to accelerate the internationalization of business. 1) in terms of hardware outlets, the company can improve the efficiency and output of individual stores by improving store display and creating monopoly areas, effectively promote the sales of all kinds of products, and at the same time constantly enhance the stickiness between terminal sales outlets and customer groups. 2) Decoration channels, on the one hand, promote the channel to sink to the county and town markets, and start the construction and layout of full-category flagship stores, which has effectively promoted the development of full-product business, on the other hand, make efforts to expand the channels of installation enterprises to provide house-wide power solutions; 3) in terms of new energy channels, the company has developed a total of more than 17000 C-terminal outlets and more than 1500 B-end operator customers in 2023. In terms of overseas business, the company established the International Division in 2023 and set up overseas subsidiaries such as Germany and Indonesia to accelerate the localization of organizations and teams and quickly integrate internal and external resources. The company conforms to the new cycle of home appliance development in Southeast Asia and other countries, with electrical connections, electrical lighting and other products as the core to grasp the development opportunities. In the face of the new cycle of new energy development in European and American markets, the company takes new energy charging and household energy storage business as the core. The company actively promotes the development of overseas business, and overseas business is expected to become a new growth driving force for the company. Profit forecast and investment advice. It is estimated that the EPS from 2024 to 2026 is 5.05,5.81,6.64 yuan respectively, and the corresponding PE is 23 times, 20 times and 18 times respectively. In view of the steady growth of the company's performance and ample room for growth in the new category, the "hold" rating is maintained. Risk hints: the risk of substantial fluctuations in material prices; the risk of intensified market competition; and the risk that business expansion is not as expected. [disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.
[disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.