FLYCO(SH:603868)2024-04-30 02:32Investment Rating - The investment rating for the company is "Outperform" [5]. Core Insights - The company's Q1 2024 revenue was CNY 1.174 billion, a year-on-year decrease of 15%, while the net profit attributable to shareholders was CNY 180 million, down 44% year-on-year. The revenue performance met market expectations, with the decline attributed to overlapping holiday sales periods [5][6]. - The product structure is further optimized, with the introduction of differentiated technology products leading to an increase in average selling prices. The Broi brand saw a significant revenue increase of 115.48% year-on-year, contributing to 17.17% of total sales [5][6]. - The gross margin improved to 57.10%, with a year-on-year increase of 1.01 percentage points, driven by the continued high-end product strategy. However, the sales expense ratio increased to 33.61%, reflecting higher marketing costs due to intensified competition [6]. Summary by Sections Financial Performance - Q1 2024 revenue was CNY 1.174 billion, down 15% year-on-year. The net profit attributable to shareholders was CNY 180 million, down 44% year-on-year. The gross margin was 57.10%, with a year-on-year increase of 1.01 percentage points [5][6][7]. - The company forecasts net profits of CNY 1.135 billion, CNY 1.304 billion, and CNY 1.515 billion for 2024, 2025, and 2026, respectively, representing year-on-year growth rates of 11.3%, 14.9%, and 16.2% [6][7]. Product Development - The company launched new products such as the "Galaxy Star Ring" hair dryer priced at CNY 239 and the "Mecha" portable shaver at CNY 399, which contributed to an increase in average selling prices despite a decline in sales volume [5][6]. - The Broi brand's online sales share in the shaver market increased to 1.6%, up 1 percentage point from the previous year, indicating successful market penetration [5]. Market Position - The company maintains a strong market position with a focus on high-end product offerings and continuous innovation, which is expected to drive future revenue and profit growth [5][6].