Hotata(SH:603848) Shanxi Securities·2024-04-24 02:30Investment Rating - The report maintains an "Accumulate-A" rating for the company, indicating a projected price increase of 5%-15% relative to the benchmark index [1]. Core Views - The company has shown significant improvement in profitability in 2023, with a notable increase in inventory turnover efficiency [1]. - The sales of smart home products and drying racks accounted for 85.7% and 12.9% of total revenue, respectively, with smart home product revenue growing by 26.39% year-on-year [9][28]. - The company is expected to continue its growth trajectory, with projected revenues of 19.95 billion, 23.19 billion, and 26.79 billion yuan for 2024-2026, representing year-on-year growth rates of 18.2%, 16.3%, and 15.5% respectively [28]. Financial Performance Summary - In 2023, the company achieved a revenue of 16.88 billion yuan, a year-on-year increase of 22.16%, and a net profit of 3.27 billion yuan, up 49.71% year-on-year [26][21]. - The gross margin improved to 51.4%, with a significant increase in the sales net profit margin to 19.4%, reflecting a 3.6 percentage point increase year-on-year [17][28]. - The company’s cash flow from operating activities reached 5.04 billion yuan, a 287% increase compared to the previous year, driven by higher cash receipts from sales [17]. Market Position and Strategy - The company is positioned as a leader in the smart drying industry, focusing on expanding its market share through penetration into untapped markets and enhancing its online presence [28]. - The e-commerce channel generated 10.06 billion yuan in revenue, marking a 19.38% increase, while offline channels saw a 26.5% growth [9][28]. - The company plans to maintain its competitive edge by optimizing production processes and continuing cost reduction initiatives [28].