DAYE(SZ:300879) CAITONG SECURITIES·2024-09-03 03:23Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company has made an unexpected global expansion by acquiring a European OPE brand company, AL-KO Geräte GmbH, for €20 million (approximately ¥158 million), utilizing a "locked box mechanism" for pricing, which secures the acquisition price based on financial data as of December 31, 2023 [2][3] - The target company generated €230 million in revenue in 2023, which is 1.9 times the company's revenue for the same period, and is expected to enhance the company's brand and sales capabilities significantly [3] - The acquisition is anticipated to elevate the company's revenue and profit levels, with projected revenues of ¥1.74 billion, ¥2.56 billion, and ¥3.37 billion for 2024, 2025, and 2026 respectively, and net profits of ¥90 million, ¥160 million, and ¥250 million for the same years [3] Summary by Relevant Sections Financial Performance - The company's revenue for 2022 was ¥1,471.58 million, which decreased to ¥928.46 million in 2023, with an expected recovery to ¥1,735.26 million in 2024, reflecting a growth rate of 86.9% [4] - The net profit for 2022 was ¥11.25 million, which turned into a loss of ¥174.87 million in 2023, with a forecasted profit of ¥90.95 million in 2024 [4] - The projected PE ratios for 2024, 2025, and 2026 are 27.01x, 15.51x, and 9.90x respectively, indicating a potential for significant valuation improvement [4] Market Position and Strategy - The target company has established strong partnerships with major brands and retailers in Europe and Australia, which will enhance the company's market presence and operational capabilities [3] - The company's international revenue contribution is approximately 30%, primarily from Europe and Australia, and the acquisition is expected to accelerate its global branding strategy [3] Future Outlook - The company is expected to benefit from the acquisition by enhancing its operational efficiency and expanding its product offerings in the OPE sector, with a focus on replicating successful business models in new markets [3]