Healthcare (SH:603313) EBSCN·2024-04-29 02:33Investment Rating - The report maintains a "Buy" rating for the company [1][21] Core Views - The company reported a revenue of 7.98 billion yuan in 2023, a slight decrease of 0.5% year-on-year, while the net profit attributable to the parent company was 110 million yuan, showing a significant increase of 157.7% year-on-year [2] - The fourth quarter of 2023 saw record high revenue of 2.26 billion yuan, with a year-on-year growth of 16.0%, although the net profit attributable to the parent company was a loss of 6.33 million yuan [2] - The company’s operating cash flow for 2023 was 920 million yuan, an increase of 62.1% year-on-year [2] Revenue Performance - In 2023, the company’s domestic and overseas sales revenue were 1.43 billion yuan and 6.33 billion yuan respectively, with year-on-year changes of +44.5% and -6.9% [3] - The domestic brand "Dream Lily" achieved a revenue of 1.09 billion yuan, a year-on-year increase of 55.2% [3] - The fourth quarter of 2023 saw domestic sales revenue of approximately 340 million yuan, a year-on-year increase of 66.5% [3] Profitability - The overall gross margin for 2023 was 38.4%, an increase of 7.3 percentage points year-on-year [20] - The gross margin for domestic sales was 46.6%, up by 5.5 percentage points year-on-year [20] - The report indicates a significant improvement in the gross margin for overseas direct sales and OEM businesses, attributed to increased factory utilization rates and lower raw material prices [20] Expense Ratios - The company’s expense ratio for 2023 was 34.2%, an increase of 5.3 percentage points year-on-year [4] - The sales expense ratio increased to 21.8%, reflecting higher channel costs and e-commerce operational expenses [21] - The financial expense ratio rose due to reduced exchange income and increased overseas borrowing costs [21] Future Outlook - The report anticipates continued improvement in the company's fundamentals, maintaining revenue forecasts for 2024-2025 and introducing a revenue forecast of 13 billion yuan for 2026 [21] - The company is expected to benefit from the recovery of the North American market, with housing sales projected to exceed 4 million units annually starting January 2024 [10]