Guangdong Xinbao Electrical Appliances (SZ:002705) Guolian Securities·2024-03-02 16:00Investment Rating - The report assigns a "Buy" rating to the company with a target price of 17.90 CNY based on a 13x PE for 2024 [10][23]. Core Insights - The company's external sales have significantly increased, with the scale rising from approximately 7 billion CNY in 2019 to around 11 billion CNY currently, indicating a strong competitive position and potential for long-term growth [2]. - The company is expected to achieve revenue of 15.6 billion CNY and 16.6 billion CNY in 2024 and 2025, respectively, with a year-on-year growth rate of 6.5% for both years [10]. - The net profit attributable to the parent company is projected to be 1.13 billion CNY and 1.27 billion CNY for 2024 and 2025, reflecting a year-on-year growth of 15.6% and 12.7% [10]. Summary by Sections Sales Performance - The company experienced a 31% increase in revenue in Q4 2023, primarily driven by a 52% growth in external sales, while internal sales showed a slight improvement [21]. - For the entire year, external sales grew by 11%, although there were fluctuations in quarterly growth rates [21]. Financial Forecast - The report forecasts the company's operating income to be 15.6 billion CNY in 2024, with a growth rate of 6.5% [10]. - The expected EPS for 2024 and 2025 is 1.37 CNY and 1.55 CNY, respectively, with a CAGR of 10% from 2022 to 2025 [10]. Market Position - The company holds a leading position in the small home appliance OEM market in China, with ongoing potential for developing its own brand in the domestic market [10].