Investment Rating - The investment rating for the company is "Buy - A" with a target price of 12.15 CNY, maintaining the rating [5][12]. Core Views - The company is focusing on smart product upgrades and is expected to see a recovery in profitability [2][12]. - The company achieved a revenue of 7.648 billion CNY in 2023, a year-on-year growth of 1.79%, but the net profit decreased by 28.43% to 425 million CNY [2][12]. - The company is actively expanding its product development and market share through promotional strategies and channel adjustments [3][12]. Revenue and Profitability - In 2023, the company reported revenue of 76.48 billion CNY, with a net profit of 4.25 billion CNY, reflecting a decline in profitability [2][12]. - The gross margin for 2023 was 28.34%, down 4.51 percentage points year-on-year, with a further decline in Q1 2024 to 24.40% [4][11]. - The company is implementing cost reduction measures to mitigate the impact of pricing pressures [4][11]. Product and Market Performance - The company has seen a significant increase in the market share of smart toilets, with revenue growth of 12.48% in this segment [3][12]. - The sales of bathroom products grew by 8.92% in volume, although revenue growth was slower due to pricing factors [3][12]. - The company is expanding its retail and e-commerce channels, with a total of 17,567 retail outlets by the end of 2023 [3][12]. Financial Forecast - The company is projected to achieve revenues of 85.65 billion CNY, 97.53 billion CNY, and 110.53 billion CNY for 2024, 2025, and 2026, respectively, with corresponding net profits of 4.92 billion CNY, 5.76 billion CNY, and 6.75 billion CNY [12][19]. - The expected PE ratios for the next three years are 16.1x, 13.8x, and 11.7x, indicating a favorable valuation outlook [12][19].
智能产品升级持续推进，静待盈利能力回升