Homa(002668) Guotai Junan Securities·2024-03-19 16:00Investment Rating - The report maintains a rating of "Buy" for the company, with a target price of 9.72 CNY, reflecting a positive outlook for the stock [24][47]. Core Insights - The company has shown strong growth in its refrigerator and freezer exports, benefiting from overseas inventory replenishment and a favorable shipping cost environment. In 2023, the company achieved a revenue of 12.99 billion CNY from its refrigerator and freezer business, representing a year-on-year increase of 32% [20][41]. - The overall gross margin improved to 23.7%, up by 3.8 percentage points year-on-year, while the net profit margin reached 10.1%, an increase of 1.9 percentage points [21][32]. - The company’s operating cash flow significantly improved, with a net inflow of 2.798 billion CNY, a year-on-year increase of 546.75% [34][46]. Summary by Sections Revenue - The company benefited from a low base in the previous year and a strong recovery in overseas markets, leading to a 21.9% year-on-year increase in refrigerator and freezer exports, totaling 65.07 million units in 2023 [20][31]. - The company ranked first in the industry in export scale, with a total sales volume of 14.19 million units, up 36% year-on-year [20][41]. Profitability - The gross margin for the company's refrigerator segment is projected to be between 27% and 28%, with a net profit margin of 14.0%, reflecting a year-on-year increase of 1.1 percentage points [32][43]. - The integration with TCL has led to improved operational efficiencies, contributing to the overall profitability of the company [24][44]. Cash Flow and Financial Health - The company reported a significant improvement in operating cash flow, with a net inflow of 2.798 billion CNY, driven by increased sales and faster accounts receivable turnover [34][45]. - The total cash and cash equivalents, along with trading financial assets, reached 3.543 billion CNY, an increase of 807 million CNY year-on-year [45][46]. Future Outlook - The company expects to maintain a growth trajectory, with projected net profits of 8.76 billion CNY, 9.89 billion CNY, and 10.84 billion CNY for the years 2024 to 2026, representing year-on-year growth rates of 11%, 13%, and 10% respectively [47][49].