BEAR APPLIANCE(SZ:002959)2024-03-14 16:00Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of RMB 78.25 based on a 25x PE valuation for 2024 [49]. Core Insights - The company achieved a revenue of RMB 4.7 billion in 2023, representing a year-on-year growth of 14.2%, and a net profit of RMB 430 million, up 11.2% year-on-year. However, Q4 2023 saw a revenue decline of 2.4% year-on-year, with net profit down 21.8% [2][49]. - The annual NPAtS margin for 2023 was 9.1%, with Q4 at 8.2%, indicating a slight recovery from Q3. Adjusted for non-recurring items, the recurring NPAtS margin for Q4 was 6.8%, up from 6.4% in Q3 [28]. - The company is focusing on brand strategy upgrades and expanding into essential household and non-kitchen appliances, which is expected to enhance its product mix and growth potential [49][53]. Financial Summary - The company forecasts net profits attributable to shareholders of RMB 430 million, RMB 491 million, and RMB 559 million for 2023, 2024, and 2025, respectively, reflecting growth rates of 11%, 14%, and 14% [49][53]. - Key financial metrics for 2023 include a gross margin of 37.5% and a net profit margin of 9.2% [52]. - The company’s total revenue is projected to reach RMB 5.34 billion in 2024 and RMB 6.02 billion in 2025, with a consistent growth trajectory [52].