Furja(SH:603219) Southwest Securities·2024-05-05 02:00Investment Rating - The report maintains a "Hold" rating for the company, with a current price of 14.51 CNY and a target price not specified for the next six months [3][11]. Core Views - The company reported a revenue of 2.69 billion CNY in 2023, a decrease of 1.9% year-on-year, and a net profit of 0.26 billion CNY, down 24.7% year-on-year. In Q4 2023, revenue was 0.79 billion CNY, showing a growth of 5.7% year-on-year, while net profit decreased by 9.5% [3][4]. - In Q1 2024, the company achieved a revenue of 0.43 billion CNY, a year-on-year increase of 1.9%, and a net profit of 0.05 billion CNY, up 94.7% year-on-year [3][4]. - The company is focusing on expanding its energy storage business, which has shown significant growth, particularly after acquiring Ningbo Yongneng New Energy Technology Co., Ltd. [4][11]. Financial Summary - The company’s revenue is projected to grow from 2.69 billion CNY in 2023 to 4.58 billion CNY by 2026, with annual growth rates of 20.0%, 19.7%, and 18.4% for the years 2024, 2025, and 2026 respectively [2][48]. - The net profit is expected to increase from 0.26 billion CNY in 2023 to 0.44 billion CNY in 2026, with growth rates of 29.9%, 15.9%, and 12.2% for the respective years [2][48]. - The company’s EPS is forecasted to be 0.60 CNY in 2024, 0.70 CNY in 2025, and 0.79 CNY in 2026 [11][48]. Business Performance - The company’s gross margin improved to 20.5% in Q1 2024, an increase of 3.5 percentage points year-on-year. The net profit margin also improved to 11.4%, up 5.3 percentage points year-on-year [5][12]. - The revenue breakdown by product shows that the energy storage products have seen a significant increase in revenue, while traditional home appliance segments like vacuum cleaners have faced declines [4][11]. Market Outlook - The company is expected to benefit from a recovery in demand for home appliances in 2024, alongside its strategic expansion into the energy storage sector [11][14]. - The report highlights the importance of improving product profitability and maintaining stable gross margins as key factors for future growth [12][14].