Entive(SZ:300911) KAIYUAN SECURITIES·2024-05-05 13:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2][7][31] Core Views - The company is expected to face pressure in Q1 2024 due to weak demand in the integrated stove industry, but new business initiatives are anticipated to contribute positively in the future [7][11][38] - The company has experienced a decline in revenue and profit in 2023, with a total revenue of 1.227 billion yuan, down 3.8% year-on-year, and a net profit of 179 million yuan, down 14.64% year-on-year [7][46] - The company is expanding its production capacity through a new subsidiary and has plans to enhance its market share through various sales channels [24][42][44] Financial Performance - In 2023, the company's revenue from integrated stoves and other products was 1.095 billion yuan and 132 million yuan, respectively, with year-on-year changes of -5.76% and +16.29% [5][67] - The company's gross profit margin for 2023 was 48.66%, an increase of 2.04 percentage points year-on-year [68] - The company reported a net profit margin of 14.59% in 2023, down 1.85 percentage points from the previous year [15][49] Sales and Market Share - The company has over 1,500 distributors covering all 31 provinces in China, indicating a strong distribution network [5][61] - Online sales through platforms like JD and Tmall reached a total transaction volume of 900 million yuan in 2023, reflecting a year-on-year growth of 10.68% [5][67] - The company's offline market share for sales and volume in 2023 was 11.8%, with a year-on-year increase of 4.3 percentage points [42][43] Future Outlook - The company plans to issue 520 million yuan in convertible bonds to fund the second phase of its environmental integrated stove industrial park, which is expected to add significant production capacity [44][45] - The new business initiatives are projected to contribute incremental revenue in 2024, despite the current challenges in the integrated stove market [24][38]