RUNNER(SH:603408) Xinda Securities·2024-04-01 16:00Investment Rating - The investment rating for the company Jianlin Home (603408) is "Accumulate," maintaining the previous rating of "Accumulate" [4]. Core Insights - The company reported a revenue of 4.334 billion yuan in 2023, a year-on-year increase of 3.52%. The net profit attributable to shareholders was 425 million yuan, a decrease of 7.25% year-on-year. In Q4 alone, the revenue reached 1.244 billion yuan, reflecting a significant year-on-year growth of 47.27% [4][5]. - The company has successfully deepened its international presence, with overseas revenue accounting for 76.8% of total revenue in 2023, amounting to 3.309 billion yuan, which is a 2.1% increase year-on-year. The domestic revenue was 9.98 billion yuan, representing an 8.5% increase year-on-year [4]. - The gross margin improved to 25.97% in 2023, an increase of 1.69 percentage points year-on-year, driven by cost reduction and efficiency improvements [4]. Summary by Sections Financial Performance - In 2023, the company achieved total revenue of 4.334 billion yuan, with a year-on-year growth of 3.5%. The net profit attributable to shareholders was 425 million yuan, down 7.3% year-on-year. The gross margin for the year was 26.0% [4][16]. - The company forecasts net profits of 502 million yuan, 590 million yuan, and 690 million yuan for 2024, 2025, and 2026, respectively, indicating growth rates of 18.2%, 17.5%, and 16.9% [5][16]. Operational Highlights - The company has enhanced its product offerings, with revenue from kitchen and bathroom products reaching 2.870 billion yuan, a year-on-year increase of 4.28%. The overseas supply chain capabilities have been strengthened, particularly with the expansion of the Thailand base and ongoing research in Mexico [4][5]. - The company is focusing on digital transformation and cost efficiency, which has positively impacted its gross margin and overall profitability [4]. Market Position - Jianlin Home is recognized as a leading manufacturer in the domestic kitchen and bathroom products sector, with a strong emphasis on smart manufacturing and international client relationships [15]. The company is well-positioned to benefit from the recovery in demand and the normalization of inventory levels [5].