Loctek(SZ:300729) Zhongyuan Securities·2024-04-21 03:30Investment Rating - The report assigns a "Buy" rating for the company, marking the first coverage [14][18]. Core Insights - The company achieved a revenue of 3.902 billion yuan in 2023, representing a year-on-year growth of 21.61%, and a net profit of 634 million yuan, which is a significant increase of 189.72% [14][18]. - The company's ergonomic product line and logistics services generated revenues of 2.612 billion yuan and 951 million yuan respectively, with year-on-year growth rates of 8.7% and 94.03% [14][18]. - The independent site sales reached 671 million yuan in 2023, with a year-on-year growth of 12.59%, showcasing the company's strong performance in cross-border e-commerce [14][18]. Financial Performance - The gross margin for 2023 was 36.53%, an increase of 2.12 percentage points year-on-year, driven by the enhanced brand strength and the expansion of the overseas warehouse business [5][14]. - The net profit margin for 2023 was 16.24%, reflecting a year-on-year increase of 9.42 percentage points [5][14]. - The company’s operating cash flow for 2023 was 820 million yuan, a substantial increase from 335 million yuan in 2022 [29]. Growth Potential - The report forecasts that the company will achieve net profits of 449 million yuan, 521 million yuan, and 584 million yuan in 2024, 2025, and 2026 respectively, with corresponding EPS of 1.44 yuan, 1.67 yuan, and 1.87 yuan [18][20]. - The company is expected to benefit from the growing demand for cross-border e-commerce and the continuous improvement in logistics efficiency through its overseas warehouse expansion strategy [14][18]. Market Position - The company has established itself as a leader in the ergonomic industry, with over 70% of its main business revenue coming from its proprietary brand products [14][18]. - The overseas warehouse business has rapidly developed, increasing its revenue contribution from 15.28% in 2022 to 24.38% in 2023 [14][18].