JINHUI(603919) Huaxin Securities·2024-03-16 16:00Investment Rating - The report maintains a "Buy" rating for the company [1][4] Core Views - The company achieved steady growth in 2023 with total revenue of RMB 2.548 billion, up 27% YoY, and net profit attributable to shareholders of RMB 329 million, up 17% YoY [1] - In Q4 2023, revenue was RMB 529 million, up 17% YoY, but net profit attributable to shareholders decreased by 15% YoY to RMB 56 million [1] - The company's product structure has been significantly optimized, with revenue from products priced above RMB 300 increasing by 37% YoY to RMB 401 million [1] - The company plans to achieve revenue of RMB 3 billion and net profit of RMB 400 million in 2024 [1] Financial Performance - Gross margin in 2023 was 62.44%, down 0.3 percentage points YoY, mainly due to rising raw material costs [1] - Sales expense ratio in 2023 was 21.02%, up 0.1 percentage points YoY, driven by new market development and brand promotion [1] - Net profit margin in 2023 was 12.66%, down 1 percentage point YoY [1] - Contract liabilities in 2023 were RMB 575 million, up 13% YoY, and operating cash flow was RMB 450 million, up 41% YoY [1] Product and Channel Analysis - Revenue from products priced above RMB 300, RMB 100-300, and below RMB 100 were RMB 401 million, RMB 1.288 billion, and RMB 816 million, respectively, with YoY growth rates of 37%, 32%, and 14% [1] - Revenue from dealer channels, direct sales, and internet channels were RMB 2.377 billion, RMB 70 million, and RMB 59 million, respectively, with YoY growth rates of 26%, 10%, and 128% [1] - Revenue from domestic and external markets were RMB 1.921 billion and RMB 585 million, respectively, both up 27% and 26% YoY [1] Share Repurchase Plan - The company plans to repurchase 3.57-7.14 million shares, accounting for 0.70%-1.41% of the total share capital, with a maximum repurchase price of RMB 28 per share [3] Profit Forecast - The company is expected to achieve revenue of RMB 3.050 billion, RMB 3.596 billion, and RMB 4.148 billion in 2024, 2025, and 2026, respectively, with YoY growth rates of 19.7%, 17.9%, and 15.4% [6] - Net profit attributable to shareholders is expected to be RMB 406 million, RMB 512 million, and RMB 628 million in 2024, 2025, and 2026, respectively, with YoY growth rates of 23.6%, 25.9%, and 22.6% [6] - EPS is expected to be RMB 0.80, RMB 1.01, and RMB 1.24 in 2024, 2025, and 2026, respectively [6] Valuation - The current stock price corresponds to a PE ratio of 28x, 22x, and 18x for 2024, 2025, and 2026, respectively [4]