BEAR APPLIANCE(SZ:002959)2024-04-29 02:02Investment Rating - The report maintains a "Buy" investment rating for the company [2][11]. Core Insights - The company’s Q1 2024 performance met expectations, with a revenue of 1.194 billion yuan, a year-on-year decrease of 5%, and a net profit of 151 million yuan, down 9% year-on-year. The decline in revenue and profit is attributed to a high base effect from the previous year [11]. - The kitchen small appliance industry is experiencing a downturn, with a 9.6% year-on-year decline in overall retail sales. However, the company has seen a recovery in sales on the Tmall platform, with a 37% year-on-year increase in March [1][11]. - The company is expected to benefit from the recovery in the Tmall channel, which has a significant impact on its revenue and profitability [1]. Financial Summary - The company’s total revenue for 2023 was 4,712 million yuan, with a projected revenue of 5,280 million yuan for 2024, reflecting a year-on-year growth of 12.1% [3][18]. - The net profit for 2023 was 445 million yuan, with forecasts of 504 million yuan for 2024, indicating a year-on-year increase of 13.3% [3][18]. - The gross margin for Q1 2024 was 38.51%, showing a significant improvement of 6.68 percentage points compared to Q4 2023, despite a year-on-year decline [12]. Market Data - As of April 26, 2024, the closing price of the company's stock was 54.97 yuan, with a market capitalization of 8,474 million yuan [4]. - The company’s price-to-earnings ratio is projected to decrease from 19 in 2023 to 17 in 2024, and further down to 15 in 2025 and 13 in 2026 [3][4]. Profitability Improvement - The company has implemented cost control measures that have begun to yield results, leading to improved profitability metrics [12]. - The net profit margin for Q1 2024 was 12.63%, which is an increase of 3.32 percentage points from Q4 2023, despite a year-on-year decline [12]. Product Strategy - The company continues to expand its product categories and is set to launch a high-end "Zhu Guang" series, which is expected to enhance profitability [2].