Investment Rating - The investment rating for VESYNC is maintained as "Buy - A" with a target price of HKD 6.18 for the next six months [2][4]. Core Insights - VESYNC has significantly improved its profitability, with a net profit margin of 13.2% in 2023, an increase of 16 percentage points year-on-year. This improvement is attributed to a reduction in provisions related to a voluntary recall of air fryers and a decrease in international shipping costs [1]. - The company reported a revenue of USD 590 million in 2023, representing a year-on-year growth of 19.4%, and a net profit of USD 80 million, recovering from a loss of USD 20 million in the previous year [1]. - VESYNC is expanding its product categories and actively developing offline sales channels, particularly in Europe and Asia, which is expected to sustain rapid revenue growth [1]. Revenue Growth - In the second half of 2023, VESYNC's revenue continued to grow rapidly, with Amazon channel revenue increasing by 9% year-on-year and non-Amazon channel revenue rising by 45% due to an increase in offline retail presence [1]. - The North American market saw a revenue increase of 19% year-on-year, driven by strong sales of home environment appliances like air purifiers and humidifiers, with VESYNC's Levoit brand leading the market [1]. - The Asian market experienced a remarkable revenue growth of 120% year-on-year in H2 2023, primarily due to rapid sales growth in Japan and the entry into over 1,400 mainstream supermarkets in Singapore, Malaysia, and Thailand [1]. Financial Projections - The projected revenues for VESYNC are USD 694 million in 2024, USD 819 million in 2025, and USD 957 million in 2026, with corresponding net profits of USD 90.6 million, USD 107.4 million, and USD 125.8 million respectively [3][9]. - The earnings per share (EPS) are expected to be USD 0.08 in 2024, USD 0.09 in 2025, and USD 0.11 in 2026 [2][3]. Valuation Metrics - The price-to-earnings (P/E) ratio is projected to be 10.0 in 2024, decreasing to 5.9 by 2026, indicating an attractive valuation as earnings grow [7]. - The net profit margin is expected to stabilize around 13.1% from 2024 to 2026, reflecting consistent profitability [7].
收入增长良好，盈利迎来修复