Investment Rating - The report assigns an "Outperform" rating for the company [4]. Core Insights - The company has three core brands: Levoit, Cosori, and Etekcity, focusing on different small appliance categories. In 2023, the company achieved revenue of $585.5 million, a year-on-year increase of 19.4%, with a net profit of $77.48 million and a gross margin of 46.9% [5][6]. - The company is expanding its product categories and has a strong market presence in air purifiers and humidifiers, holding 28.6% and 22.7% market shares in the U.S., respectively [5]. - The company is also increasing its revenue through channel development, with Amazon channel revenue growing by 11.2% and non-Amazon channel revenue increasing by 61.2% in 2023 [4][5]. Financial Summary - Revenue is projected to grow from $585.5 million in 2023 to $952.23 million by 2026, with a compound annual growth rate (CAGR) of approximately 16.29% [6][9]. - Net profit is expected to rise from $77.48 million in 2023 to $128.71 million in 2026, reflecting a significant recovery and growth trajectory [6][9]. - The company’s earnings per share (EPS) is forecasted to increase from $0.0692 in 2023 to $0.1123 in 2026 [6][9]. Market Performance - The company has shown strong performance relative to the Hang Seng Index, with absolute returns of 11.74% over one month and 20.44% over two months [4]. - The company is expected to maintain a stable gross margin of around 46.76% to 46.97% from 2024 to 2026 [8][9]. Regional Expansion - The company is focusing on regional expansion, with revenue growth in Europe and Asia projected at 25% and 60% respectively for 2024 [8][9]. - North America is expected to see steady revenue growth of 15% in 2024, gradually decreasing to 12% by 2026 [8][9]. Investment Recommendations - The report suggests that the company is well-positioned for steady growth due to its product expansion, channel development, and regional market penetration, with a target price range of HKD 9.53 to 11.43 based on a PE ratio of 15-18 times for 2024 [5][6].
公司研究报告：品类拓展、渠道开发及区域拓展贡献增长