ROBAM(SZ:002508) Guotai Junan Securities·2024-04-26 04:32Investment Rating - The investment rating for the company is "Buy" with a target price of 29.00 CNY, down from the previous target of 29.12 CNY [1][2][8]. Core Views - The company continues to see revenue growth driven by new product launches, particularly in dishwashers and integrated stoves, which are expected to outperform the industry growth rate [1][10]. - The earnings forecast for 2024-2026 has been adjusted downwards, with expected EPS of 1.95, 2.12, and 2.23 CNY, reflecting a year-on-year growth of +7%, +9%, and +5% respectively [8][10]. - The company’s performance in 2023 met expectations, with a revenue of 112.02 billion CNY, a year-on-year increase of +9.06%, and a net profit of 17.33 billion CNY, up +10.2% [10][11]. Summary by Sections 1. Earnings Forecast and Investment Advice - The company is expected to maintain revenue growth due to new product contributions, despite a slow recovery in consumer demand and intense market competition. The target price has been adjusted to 29 CNY based on a 15x PE ratio for 2024 [8][10]. 2. Performance Overview - In 2023, the company achieved a revenue of 112.02 billion CNY, with a net profit of 17.33 billion CNY. The Q4 2023 revenue was 32.69 billion CNY, reflecting a year-on-year increase of +7.71% [10][11]. 3. Product Category Growth - The company saw stable growth in its range hood category, while dishwashers and integrated stoves showed significant increases in sales. For instance, the sales of dishwashers grew by 28% year-on-year [11][12]. 4. Q1 Margin Analysis - The gross margin for Q1 2024 was reported at 50.65%, a decrease of 4.14 percentage points year-on-year, attributed to changes in revenue structure and fluctuations in raw material prices [13][14]. 5. Cash Flow and Working Capital - The company reported a healthy cash flow situation, with a net cash flow from operating activities of 23.92 billion CNY in 2023, an increase of 4.47 billion CNY year-on-year [16][17]. 6. Shareholder Return Plan - The company has announced a shareholder return plan for 2024-2026, committing to a cash dividend distribution of no less than 50% of the net profit attributable to shareholders [17][19]. 7. Long-term Incentive Mechanism - A new stock option plan has been proposed for key management and technical personnel, aimed at enhancing long-term incentives and retaining talent [19][20].