BEAR APPLIANCE(SZ:002959) Guotai Junan Securities·2024-04-09 16:00Investment Rating - The report assigns a "Buy" rating to the company with a target price of 78.00 CNY, maintaining the rating from the previous assessment [31][53]. Core Views - The company has achieved significant growth in overseas revenue and a substantial increase in offline channel contributions, indicating a positive outlook for revenue recovery [31][54]. - Despite the competitive industry landscape, the company has successfully optimized its product structure and pricing strategy, which is expected to continue driving revenue growth [21][40]. - The report highlights the company's strong cash flow position and healthy financial metrics, suggesting resilience in its operations [24][42]. Summary by Sections Financial Performance - In 2023, the company reported a revenue of 4.712 billion CNY, a year-on-year increase of 14.43%, and a net profit of 445 million CNY, up 15.26% [20][38]. - The fourth quarter of 2023 saw a slight decline in revenue to 1.394 billion CNY, down 1.79% year-on-year, with a net profit of 130 million CNY, down 11.08% [20][38]. Revenue Breakdown - Domestic sales in 2023 amounted to 4.34 billion CNY, a 10% increase, while international sales reached 370 million CNY, a remarkable 106% increase [6][19]. - The company’s online sales contributed 3.87 billion CNY, a 10% increase, while offline sales grew by 41% to 850 million CNY [22][54]. Profitability Metrics - The gross profit margin for 2023 was 36.61%, with a net profit margin of 9.45% [41][60]. - The report notes a decline in gross sales difference, attributed to increased competition and pricing pressures [23][57]. Cash Flow and Financial Health - The company reported a net cash flow from operating activities of 685 million CNY in 2023, reflecting a year-on-year increase [59]. - Cash and cash equivalents at the end of 2023 totaled 3.021 billion CNY, indicating a stable liquidity position [42][60]. Future Outlook - The company is expected to continue its growth trajectory, with projected EPS for 2024-2026 at 3.25, 3.70, and 4.08 CNY respectively, reflecting a growth rate of 14% for 2024 and 2025 [53][54]. - The ongoing expansion into overseas markets and enhancement of product offerings are anticipated to support sustained revenue growth [39][40].