supor(SZ:002032) Guotai Junan Securities·2024-02-24 16:00Investment Rating - The investment rating for the company is "Buy" with a target price of 63.50 CNY, up from the previous forecast of 60.40 CNY [1][2]. Core Views - The company has shown stable growth in domestic sales, while external sales are experiencing a high increase as clients replenish their inventories. The overall revenue performance is expected to exceed expectations, leading to a "Buy" recommendation [1][2]. - The earnings forecast for the company is maintained, with expected EPS of 2.70 CNY, 3.02 CNY, and 3.36 CNY for 2023, 2024, and 2025 respectively, reflecting year-on-year growth of +5%, +12%, and +11% [1][2]. Summary by Sections Company Overview - The company is a leading brand in kitchen small appliances and cookware in China, focusing on product research, manufacturing, and sales [2]. Financial Performance - In 2023, the company achieved a revenue of 213 billion CNY, a year-on-year increase of +5.60%, with a net profit of 21.8 billion CNY, also up by +5.42% [1][2]. - The company’s Q4 performance showed a revenue of 59.33 billion CNY, a year-on-year increase of +14% [1]. Sales and Market Trends - Domestic sales are steadily increasing, while external sales are expected to grow significantly as inventory levels normalize. The company is projected to achieve low single-digit growth in domestic sales and over 50% growth in external sales [1][2]. - The company is benefiting from brand advantages and e-commerce traffic, which is expected to lead to an increase in order quantities in Q4 [1]. Earnings Forecast - The earnings per share (EPS) for 2023 is projected at 2.70 CNY, with subsequent years showing growth to 3.02 CNY in 2024 and 3.36 CNY in 2025 [1][2]. - The company maintains a high dividend yield, which supports its stable operational capabilities [1]. Valuation Metrics - The company is assigned a 21x PE for 2024, reflecting a cautious yet optimistic outlook based on industry comparisons [1][2].