AUPU(SH:603551) Guotou Securities·2024-04-24 04:31Investment Rating - The investment rating for the company is Buy-A with a target price of 15.13 CNY over the next six months, while the current stock price is 11.76 CNY [1]. Core Insights - The company reported a revenue of 2.0 billion CNY in 2023, representing a year-over-year increase of 6.2%, and a net profit of 310 million CNY, which is a 28.8% increase year-over-year [3]. - The company has a high dividend payout ratio, planning to distribute 8.0 CNY per 10 shares, totaling approximately 310 million CNY, with a dividend rate of 99.99% [3]. - The company is a leader in the bathroom heater industry and is actively innovating products, which is expected to sustain revenue growth [4][5]. Financial Performance - In Q4 2023, the company achieved a revenue of 630 million CNY, up 3.2% year-over-year, and a net profit of 110 million CNY, up 36.4% year-over-year [3]. - For Q1 2024, the company reported a revenue of 380 million CNY, a 10.1% increase year-over-year, and a net profit of 50 million CNY, a 9.8% increase year-over-year [3]. - The company's gross margin improved by 1.1 percentage points in Q1 2024, driven by the growth of high-margin electrical appliance sales [22]. Market Position and Growth Potential - The company is expanding its online sales channels, with a reported 82% year-over-year increase in sales through Douyin in Q1 2024, indicating strong e-commerce growth [21]. - The company is also enhancing its offline distribution by increasing the number of physical dealers, contributing to robust growth in offline sales [21]. - The introduction of innovative products, such as the beauty function integrated bathroom heater, positions the company favorably in the market [4][5]. Earnings Forecast - The expected earnings per share (EPS) for 2024 and 2025 are projected to be 0.89 CNY and 1.03 CNY, respectively [5]. - The company anticipates a revenue growth rate of 6.9% in 2024, with net profit growth rates of 15.5% in the following years [26]. Valuation Metrics - The company is currently valued at a price-to-earnings (P/E) ratio of 17 times for 2024, which is expected to decrease to 11.4 times by 2025 [26]. - The projected net profit margin is expected to improve from 15.5% in 2023 to 18.3% by 2026 [26].