Investment Rating - The report assigns a rating of "Buy" for the company [2][13]. Core Insights - The company reported a significant increase in profitability for 2023, with total revenue reaching 1.616 billion RMB, a growth of 11.7% year-on-year. Gross profit was 718 million RMB, up 19.4%, and net profit attributable to shareholders was 175 million RMB, reflecting a remarkable increase of 164.8% [11]. - The second half of 2023 saw accelerated revenue growth, with 483 million RMB in revenue, a 23.3% increase, and a net profit turnaround from a loss in the previous year [11]. - The company has raised its EPS forecasts for 2024 and 2025 to 0.14 RMB, with a new forecast for 2026 at 0.15 RMB. The target price has been adjusted to 2.10 RMB based on comparable company valuations [11][13]. Financial Summary - Revenue for 2023 was 1,616 million RMB, with a year-on-year growth of 12.0%. The gross profit margin improved to 51.88%, up 4.4 percentage points, driven by the introduction of differentiated high-end products [11][5]. - The company achieved a net profit margin of 7.98% in the second half of 2023, an increase of 13.5 percentage points, primarily due to a reduction in sales and distribution expenses [11]. - The company’s financial metrics indicate a PE ratio of 39.46 for 2023, which is expected to decrease to 10.37 by 2026, reflecting improved profitability [5]. Business Performance - The company’s revenue from home care products was 428 million RMB, up 20.6%, while the pet business generated 32 million RMB, down 28.6%. The personal care segment saw a slight decline of 5.9% [11]. - Offline sales channels showed significant growth, with revenue of 274 million RMB, a 37.3% increase, while online sales decreased by 6.8% [11]. - The company has expanded its offline presence in the pet business, opening 15 stores under the "爪爪喵星球" brand and 14 stores under "米乐乖乖" by February 2024, enhancing its market coverage [11].
2023年年报点评：盈利能力显著提升，宠物业务增长可期