BEAR APPLIANCE(SZ:002959) Guotou Securities·2024-07-05 01:30Investment Rating - The investment rating for the company is maintained at "Buy - A" with a target price of 56.51 CNY for the next six months, based on an expected EPS of 3.14/3.50/3.92 CNY for 2024-2026 [10][11]. Core Insights - The company is acquiring 61.8% of Roman Intelligent Technology Co., Ltd. for 150 million CNY, which will enhance its position in the personal care small appliance sector and expand its overseas business [21][22]. - Roman Intelligent specializes in personal care small appliances, with a strong ODM/OEM business model, accounting for 80% of its revenue in 2023 [9]. - The acquisition is expected to improve the company's product line in electric toothbrushes and hair dryers, increasing its market share in the personal care segment [22]. Financial Performance - The company's total revenue for 2022 was 41.2 billion CNY, projected to grow to 65.0 billion CNY by 2026 [26]. - Net profit is expected to increase from 3.9 billion CNY in 2022 to 6.1 billion CNY in 2026, with EPS rising from 2.48 CNY to 3.92 CNY over the same period [26][37]. - The company has shown a consistent improvement in gross profit margin, with projections indicating a rise from 36.4% in 2022 to 36.8% in 2026 [37]. Market Position - The company is recognized as a leading online small appliance firm, capturing a significant share of the long-tail small appliance market [10]. - The acquisition of Roman Intelligent is anticipated to create synergies in raw material procurement, manufacturing, and sales channels, enhancing operational efficiency [22].