TCL Smart Home(SZ:002668) Guoxin Securities·2024-04-28 01:30Investment Rating - The report maintains an "Accumulate" rating for the company [29][11]. Core Insights - The company achieved a revenue of 4.2 billion with a year-on-year growth of 24.6% in Q1 2024, and a net profit attributable to shareholders of 230 million, reflecting a 27.8% increase [9]. - The overall profitability remains stable, with a slight decrease in gross margin by 1.9 percentage points to 20.3% due to factors such as raw material and shipping costs [10]. - The company is a leading player in refrigerator exports, benefiting from significant operational efficiency and strong customer relationships, with a positive outlook for collaboration with TCL [11][30]. Financial Performance - The company’s Q1 2024 contract liabilities reached 370 million, indicating a 25.1% increase from the end of 2023, suggesting robust downstream export demand [14]. - The forecast for net profit attributable to shareholders for 2024-2026 is 880 million, 980 million, and 1.1 billion respectively, with year-on-year growth rates of 11.6%, 11.3%, and 12.3% [11][32]. - The company plans to rebrand as "TCL Smart Home" and expand its business scope to include smart home products, indicating a strategic shift under TCL's ownership [31]. Financial Metrics - The company’s revenue is projected to grow from 15.18 billion in 2023 to 20.86 billion in 2026, with a compound annual growth rate of approximately 10.6% [32]. - The net profit is expected to increase from 787 million in 2023 to 1.1 billion in 2026, reflecting a strong growth trajectory [32]. - Key financial ratios include a projected PE ratio of 12.3 for 2024 and a PB ratio of 4.91, indicating reasonable valuation metrics [32].