Hisense V.T.(SH:600060) Huaan Securities·2024-04-23 11:00Investment Rating - The investment rating for Hisense Visual is maintained as "Buy" [1] Core Views - The report indicates that the company's performance is expected to recover after hitting a low point, with a focus on the upcoming revenue growth in Q2 2024 due to the end of inventory destocking and the upcoming European Olympic Games [1][2] - The company's Q1 2024 revenue reached 12.7 billion, a year-on-year increase of 10.6%, while net profit attributable to the parent company was 470 million, down 24.8% year-on-year [1] - The report highlights that the main revenue growth is driven by domestic sales, which are expected to grow over 15%, primarily due to an increase in average selling price (ASP) [1][2] Summary by Sections Financial Performance - Q1 2024 revenue was 12.7 billion, with a 10.6% increase year-on-year; net profit was 470 million, down 24.8% year-on-year [1] - The overall performance aligns with prior expectations, with main revenue up 15% year-on-year and non-main revenue down 28% [1] - The gross margin for Q1 2024 was 15.8%, a decrease of 2.4 percentage points year-on-year [1] Revenue Breakdown - Domestic sales are projected to grow over 15%, with ASP contributing to a year-on-year increase of approximately 22% [1] - The report notes that the overseas sales growth is expected to lag behind domestic sales, with a year-on-year increase of about 14% [1] - The new display business is anticipated to continue high growth, with Q1 2024 revenue from Qianzhao Optoelectronics reaching 560 million, a year-on-year increase of 21% [1] Profitability and Cash Flow - The report indicates that the company is managing costs effectively during the profit downturn, with a focus on maintaining cash flow stability [1] - Operating cash flow net amount decreased by 81%, primarily due to increased accounts receivable and deferred accounts payable [1] - The report emphasizes the need to monitor the company's turnover efficiency and management capabilities, which have been improving [1] Future Outlook - The company aims for long-term growth, with a target to become the global leader in its sector, supported by the implementation of stock incentives [1] - The revenue forecast for 2024-2026 is projected at 60.4 billion, 65.6 billion, and 70.2 billion respectively, with net profit estimates of 2.3 billion, 2.5 billion, and 2.8 billion [2][3]