Zhejiang Natural Outdoor Goods (SH:605080) GOLDEN SUN SECURITIES·2024-05-01 06:10Investment Rating - The report maintains a "Buy" rating for the company [15][16]. Core Views - The company's revenue and net profit are expected to show steady growth in 2024, driven by the recovery of overseas clients' inventory and collaboration with automotive orders [25]. - The company has a vertically integrated supply chain for inflatable mattresses, maintaining a gross margin above 30%, which is higher than industry peers [14]. - The company is actively expanding its product categories and market scenarios, with expectations for rapid growth in orders for inflatable mattresses and new categories like water sports products in 2024 [24]. Financial Performance - In Q1 2024, the company reported a revenue of 270 million yuan, a year-on-year increase of 14%, while the net profit attributable to shareholders decreased by 42% to 40 million yuan [24]. - The gross margin for Q1 2024 was 38.4%, reflecting a year-on-year increase of 0.5 percentage points [24]. - The company’s operating cash flow for Q1 2024 was 30 million yuan, approximately 0.9 times the net profit attributable to shareholders for the same period [3]. Future Outlook - The company is expected to achieve revenue and net profit growth in 2024, with projected net profits of 172 million yuan, 196 million yuan, and 219 million yuan for 2024, 2025, and 2026 respectively [26]. - The company is enhancing its production capabilities with new facilities in Zhejiang and overseas, which are anticipated to contribute positively to profitability [14][25]. - The report estimates that the company's orders for inflatable mattresses will see steady growth in 2024, supported by the reduction of downstream inventory [25].