R&T(SZ:002790) Southwest Securities·2024-04-29 10:29Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the next six months [1][6][14]. Core Insights - The company reported a revenue of 2.18 billion yuan in 2023, representing a year-on-year increase of 11.5%. The net profit attributable to shareholders was 220 million yuan, up 3.6% year-on-year [1][3]. - The first quarter of 2024 showed strong performance with a revenue of 520 million yuan, a significant increase of 32.3% year-on-year, and a net profit of 60 million yuan, up 47.1% year-on-year [1][3]. - The smart toilet and cover business generated 1.27 billion yuan in revenue in 2023, growing by 25.9% and accounting for 58% of total revenue [2][3]. Summary by Sections Financial Performance - In 2023, the company achieved a total revenue of 2.18 billion yuan, with a net profit of 220 million yuan and a non-recurring net profit of 200 million yuan, reflecting growth rates of 11.5%, 3.6%, and 3.8% respectively [1][7]. - For Q4 2023, revenue was 640 million yuan, with a year-on-year growth of 11.3%, while net profit decreased by 24.8% to 40 million yuan [1][3]. - The first quarter of 2024 saw revenue of 520 million yuan, a 32.3% increase, and net profit of 60 million yuan, a 47.1% increase [1][3]. Product Segmentation - The smart toilet segment showed robust growth, with revenue reaching 1.27 billion yuan in 2023, up 25.9% year-on-year. The average price of smart toilets has decreased significantly, indicating competitive pricing strategies [2][3]. - Revenue from water tanks and accessories was 620 million yuan, down 13.7% due to inventory destocking by overseas clients [2][3]. - The same-layer drainage system generated 210 million yuan in revenue, reflecting a stable growth of 17.7% [2][3]. Market Dynamics - Domestic sales grew rapidly, with internal sales reaching 1.65 billion yuan, up 17.3% year-on-year, while external sales declined by 3.2% to 540 million yuan [3][4]. - The company is leveraging online platforms like Douyin and Tmall for sales growth while expanding offline retail channels [2][3]. Profitability and Margins - The overall gross margin improved to 29.5%, up 4.7 percentage points year-on-year, driven by product mix optimization [4][6]. - The gross margin for smart toilets was 30.1%, while the water tank segment had a gross margin of 25.8% [4][6]. - The net profit margin for 2023 was 10%, slightly down from the previous year, but improved to 11.2% in Q1 2024 [4][6]. Future Outlook - The company is expected to see continued growth in the smart toilet segment, with projected revenues of 2.68 billion yuan in 2024, representing a growth rate of 22.8% [7][10]. - Earnings per share (EPS) are forecasted to be 0.63 yuan in 2024, with a PE ratio of 18 times [6][10].