Huakai Yibai(300592) Minsheng Securities·2024-04-25 09:30Investment Rating - The report maintains a "Recommend" rating for the company, with a target price of 17.60 CNY [19] Core Views - The company achieved revenue of 1.697 billion CNY in 1Q24, a YoY increase of 23.05%, but a QoQ decline of 4.04% [1] - Net profit attributable to the parent company was 82 million CNY in 1Q24, a YoY increase of 7.67% and a QoQ surge of 148.79% [1] - The company plans to invest 1.5 billion CNY to establish a South China headquarters in Zhongshan, aiming to enhance market competitiveness [1] - The chairman's spouse increased holdings twice, demonstrating strong confidence in the company's future [1] - The company launched its first equity incentive plan, targeting a 30% YoY growth in revenue or profit for 2024 [1] Financial Performance - Gross margin in 1Q24 was 36.46%, down 1.54 pct YoY but up 1.79 pct QoQ [1] - Net profit margin in 1Q24 was 4.83%, down 0.69 pct YoY but up 2.97 pct QoQ [1] - Operating cash flow in 1Q24 was 366 million CNY, a YoY increase of 28.28% [1] - Inventory turnover days increased by 4.71 days YoY to 78.29 days [1] Business Strategy - The company's business is driven by three main segments: general products, premium products, and the Yimai platform [19] - General products focus on regional expansion and cost efficiency through IT systems [19] - Premium products have formed four major product lines: cleaning appliances, home appliances, pet supplies, and lighting [19] - The Yimai platform assists sellers in expanding overseas markets, benefiting from the global e-commerce boom [19] Financial Forecasts - Revenue is expected to grow from 6.518 billion CNY in 2023 to 11.983 billion CNY in 2026, with a CAGR of 22.6% [9] - Net profit attributable to the parent company is forecasted to increase from 332 million CNY in 2023 to 673 million CNY in 2026, with a CAGR of 26.5% [9] - EPS is projected to rise from 1.15 CNY in 2023 to 2.33 CNY in 2026 [9] - PE ratio is expected to decline from 15x in 2023 to 8x in 2026, indicating improving valuation [9] Key Developments - The company plans to establish a South China headquarters with a total investment of 1.5 billion CNY [1] - The chairman's spouse completed two share purchase plans, totaling 50.9 million CNY [1] - The company launched its first equity incentive plan, targeting 30% YoY growth in revenue or profit for 2024 [1]