HAERS(SZ:002615) Guotou Securities·2024-04-30 06:00Investment Rating - The investment rating for the company is "Buy-A" with a target price of 10.35 CNY per share over the next six months [10][11]. Core Views - The report highlights that the company has shown significant growth in Q1 2024, with revenue reaching 570 million CNY, a year-on-year increase of 58.6%, and a net profit of 31.48 million CNY, up 781.6% year-on-year. This performance is attributed to a low base effect and strong overseas demand, particularly from major clients restocking inventory [1][10]. Summary by Sections Financial Performance - In Q1 2024, the company achieved a gross margin of 27.4%, an increase of 0.6 percentage points year-on-year, primarily due to the depreciation of the RMB against the USD, which improved the gross margin performance [5][9]. - The total expense ratio (selling, administrative, and R&D expenses) was 21.7%, a decrease of 2.0 percentage points year-on-year, indicating effective cost control [3]. Market Demand - The report notes that the demand for insulated cups in overseas markets remains robust, with China's total exports of insulated cups increasing by 28.4% year-on-year in Q1 2024. Notably, exports to North America surged by 39.2% year-on-year, supporting the company's order growth from major clients like YETI and PMI [2]. Future Outlook - The company is positioned well for future growth, with expectations of continued demand from overseas markets and a positive outlook for orders from major clients. The introduction of new products by YETI is anticipated to further drive order growth for the company in 2024 [2][10].