BEAR APPLIANCE(SZ:002959) Guotai Junan Securities·2024-04-30 02:02Investment Rating - The report maintains a "Buy" rating for the company with a target price of 78.00 CNY, reflecting a 24x PE for 2024 [2][32]. Core Insights - The company's revenue performance is better than the industry average, with a slight narrowing of the gross margin decline [2][14]. - The company is expected to see revenue recovery as operational details and processes improve, and category strategies continue to be effective [2][32]. Summary by Sections Financial Performance - In Q1 2024, the company achieved a revenue of 1.194 billion CNY, a year-on-year decrease of 4.58%, and a net profit attributable to shareholders of 151 million CNY, down 8.53% year-on-year [2][12]. - The gross margin for Q1 2024 was 38.51%, a decline of 1.25 percentage points year-on-year, while the net profit margin was 12.63%, down 0.55 percentage points [15][34]. Cost and Expense Analysis - The company reported an increase in expense ratios for sales, management, R&D, and financial costs in Q1 2024, with respective rates of 17.85%, 3.93%, 3.13%, and 0.2%, reflecting increases of 2.29, 0.16, 0.61, and 0.17 percentage points year-on-year [16][34]. Market Position and Strategy - The company is positioned as a leading brand in the small home appliance sector, leveraging both online and offline sales channels to enhance market penetration [2][30]. - The report indicates that the competitive pricing environment is stabilizing, which may benefit the company's gross margin in the future [34]. Future Outlook - The company is projected to achieve EPS of 3.25, 3.70, and 4.08 CNY for 2024, 2025, and 2026 respectively, representing year-on-year growth of 14%, 14%, and 10% [32][32]. - The overall cash flow situation is healthy, with a net cash flow from operating activities of 129 million CNY in Q1 2024 [37].