Healthcare (SH:603313) Soochow Securities·2024-04-29 22:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a total revenue of 7.976 billion yuan in 2023, a slight decrease of 0.5% year-on-year, while the net profit attributable to shareholders increased significantly by 157.7% to 1.066 billion yuan, aligning with expectations [1] - The company's profitability has shown significant recovery, with both domestic and international gross margins improving year-on-year. The gross margin for 2023 increased by 7.3 percentage points to 38.4% [1] - The company has implemented various measures to boost domestic sales, achieving a 55.2% year-on-year increase in revenue from its own brand to 1.09 billion yuan in 2023 [1] - The company is actively promoting cross-border e-commerce and is expected to benefit from the anti-dumping measures on mattresses in the U.S. [1] - The profit forecast for 2024 and 2025 has been raised to 4.4 billion yuan and 6.8 billion yuan respectively, with an expected EPS of 0.76 yuan and 1.19 yuan [1] Summary by Sections Financial Performance - In 2023, the company achieved total revenue of 7,976 million yuan, with a year-on-year change of -0.52%. The net profit attributable to shareholders was 1,066 million yuan, reflecting a year-on-year increase of 157.74% [1] - The gross margin for 2023 was 38.4%, up 7.3 percentage points from the previous year, with domestic and international gross margins at 44.4% and 36.8% respectively [1] Sales and Marketing - The company’s domestic sales for its own brand reached 1,090 million yuan in 2023, a 55.2% increase year-on-year. The revenue breakdown by channel includes direct stores (130 million yuan), distribution stores (380 million yuan), online sales (240 million yuan), and hotel business (220 million yuan) [1] - The company is focusing on an integrated new retail model and optimizing store categories, with a net increase of 22 direct stores and a net decrease of 238 distribution stores by the end of 2023 [1] International Expansion - The company is leveraging its DTC experience and supply chain advantages to develop cross-border e-commerce, achieving 970 million yuan in overseas online sales, a year-on-year increase of 116.2% [1] - The company has established production capacity in the U.S., with significant capacity utilization expected following the implementation of anti-dumping measures [1] Profit Forecast and Valuation - The profit forecasts for 2024 and 2025 have been adjusted to 4.4 billion yuan and 6.8 billion yuan respectively, with an expected EPS of 0.76 yuan and 1.19 yuan [1] - The corresponding P/E ratios are projected to be 11.53 for 2024 and 7.40 for 2025, maintaining a "Buy" rating [1]