Tianfeng Securities·2024-03-28 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock over the next six months [5]. Core Views - The company achieved a revenue of 261.43 billion yuan in 2023, representing a year-on-year growth of 7.3%. The net profit attributable to shareholders was 16.60 billion yuan, up 12.8% year-on-year [1][2]. - The company plans to distribute a cash dividend of 8.04 yuan per 10 shares, with a total cash dividend of 7.47 billion yuan, resulting in a payout ratio of 45.02% [1]. - The company has outlined a shareholder return plan for the next three years, aiming for a cash dividend payout ratio of at least 50% in 2025-2026 [1]. Financial Performance - Revenue breakdown by segment for 2023 includes air conditioning (46.1 billion yuan, +13%), refrigeration (81.9 billion yuan, +5%), kitchen appliances (41.7 billion yuan, +7%), washing and drying machines (61.5 billion yuan, +6%), water appliances (15.3 billion yuan, +9%), and other businesses (96.7 billion yuan, +6%) [2]. - Revenue by region shows growth in China (+7%), the US (+4%), Europe (+24%), South Asia (+15%), Southeast Asia (+12%), and Japan (+3%), while the Middle East and Africa saw a decline of 2% [2]. - The gross profit margin for Q4 2023 was 34.0%, reflecting a year-on-year increase of 0.1 percentage points [2]. Future Projections - The company expects net profits to reach 18.92 billion yuan in 2024, 21.41 billion yuan in 2025, and 24.05 billion yuan in 2026, with corresponding P/E ratios of 12.5x, 11.1x, and 9.8x respectively [2][3]. - The report highlights the company's focus on digital transformation and high-end brand positioning domestically, while optimizing product structure and improving supply chain efficiency internationally [2]. Key Financial Metrics - The company's total assets increased from 235.84 billion yuan in 2022 to 253.38 billion yuan in 2023 [8]. - The net profit margin for 2023 was 6.35%, up from 6.04% in 2022 [8]. - The company’s return on equity (ROE) is projected to improve from 16.03% in 2023 to 17.01% in 2026 [8].