BIYI(SH:603215) Guotou Securities·2024-04-25 01:30Investment Rating - The investment rating for the company is "Buy-A" with a target price of 20.28 yuan for the next six months, based on a price-to-earnings ratio of 18 times for 2024 [11][36]. Core Insights - The company reported a revenue of 1.56 billion yuan in 2023, representing a year-over-year increase of 4.0%, and a net profit of 200 million yuan, which is a 13.3% increase year-over-year. However, the fourth quarter of 2023 saw a significant decline in revenue and net profit, with a decrease of 32.8% and 43.9% respectively [8][9]. - The first quarter of 2024 continued to show pressure on revenue, with a 15.4% decline year-over-year, and a drastic drop in net profit by 78.1% [8][9]. - The company is focusing on deepening relationships with existing clients and expanding its customer base, which is expected to lead to a revenue recovery in the future [8]. Financial Performance - The company's gross profit margin decreased by 8.1 percentage points year-over-year in Q1, attributed to lower margins on new product lines and an increase in management expense ratio by 2.9 percentage points [9]. - The earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 1.13, 1.23, and 1.33 yuan respectively [9][13]. - The company has been recognized as the best supplier by Philips and is expanding into new product categories such as coffee machines [17]. Market Position - The company is positioned as a leading player in the kitchen small appliances industry, with strong capabilities in research and development, cost control, and production delivery [9]. - The company has successfully entered partnerships with well-known brands such as Philips, SharkNinja, and Supor, indicating a robust market presence [9][17]. Cash Flow and Valuation - The operating cash flow for Q1 showed a decline of 110 million yuan year-over-year, primarily due to decreased sales revenue [10]. - The total market capitalization of the company is approximately 3.49 billion yuan, with a circulating market value of about 1.30 billion yuan [11].