Hotata(SH:603848) Wanlian Securities·2024-04-24 11:00Investment Rating - The investment rating for the company is "Buy (Maintain)" [7][10]. Core Views - The company has achieved significant revenue growth, with a total revenue of 1.688 billion yuan in 2023, representing a year-on-year increase of 22.16%. The net profit attributable to shareholders reached 327 million yuan, up 49.71% year-on-year, indicating better-than-expected performance [17]. - The company is focusing on optimizing its product structure, transitioning from traditional drying products to smart drying products, which accounted for 85.70% of its main business revenue in 2023 [3][10]. - The company is expanding its sales channels, achieving a 37.51% year-on-year increase in offline sales, while online sales grew by 13.71% [3][10]. Summary by Sections Financial Performance - In 2023, the company reported a revenue of 1.688 billion yuan and a net profit of 327 million yuan, with a significant increase in net profit margin to 19.36% [17][8]. - The company’s gross margin improved by 4.98 percentage points to 51.35%, driven by product optimization and cost reduction efforts [8][10]. Product and Market Development - The company’s smart home products generated revenue of 1.433 billion yuan in 2023, a year-on-year increase of 26.39%, reflecting a shift towards higher-margin products [3][10]. - The company is expected to benefit from the increasing penetration of smart home solutions in China, which will enhance its market share [10]. Future Earnings Forecast - The earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 0.98 yuan, 1.18 yuan, and 1.40 yuan respectively, with corresponding price-to-earnings (PE) ratios of 15, 12, and 10 times based on the closing price on April 23, 2024 [5][10].