Investment Rating - The report assigns a "Buy" rating for the company, marking its initial coverage [6]. Core Insights - The company has achieved a three-stage leap in growth, transitioning from component manufacturing to ODM and now to OBM, focusing on intelligent electric sofas and beds, with over 40 partnerships with top 100 U.S. home retailers [6][19]. - Revenue has shown a strong recovery since Q2 2023, with quarterly revenue growth exceeding 20% year-on-year, driven by inventory reduction in the U.S. market and effective new customer acquisition strategies [6][25]. - The company has a robust cost transfer capability and has benefited from favorable currency and interest rate conditions, leading to an increase in net profit margin from 12% in 2017 to 23% in the first three quarters of 2024 [6][25]. Company Overview - The company was established in 2002 and has evolved through three stages: component manufacturing, ODM, and OBM, with a focus on intelligent electric sofas and beds [19]. - The management team is experienced and has a strong international background, with a significant portion of employees based overseas [20]. Financial Performance - For the first three quarters of 2024, the company reported revenue and net profit of 1.849 billion and 431 million RMB, respectively, representing year-on-year growth of 27% and 34% [6][25]. - The company’s revenue is projected to grow from 1.921 billion RMB in 2023 to 3.618 billion RMB by 2026, with a compound annual growth rate (CAGR) of 21.48% [10]. Product and Market Analysis - The company’s primary products are intelligent electric sofas, which contributed 77% of revenue in the first half of 2024, while intelligent electric beds accounted for 13% [30]. - The U.S. market remains the primary sales region, with 99% of revenue coming from exports, and the company is also expanding into markets like Canada, Australia, and Italy [30]. Profitability and Cost Structure - The gross margin for the first half of 2024 was 33.22%, reflecting a steady improvement due to effective cost management and product upgrades [36]. - The company maintains a low sales expense ratio of under 5%, which is advantageous given its focus on B2B operations [36]. Future Outlook - The company is expected to continue its growth trajectory, with net profit forecasts of 517 million, 623 million, and 762 million RMB for 2024, 2025, and 2026, respectively, indicating a strong growth outlook [10].
匠心家居：公司深度报告：日就月将，求索OBM