Investment Rating - The report maintains a "Hold" rating for the company [1] Core Views - The company reported a revenue of 3.153 billion yuan in 2023, a year-on-year decrease of 4.6%, and a net profit attributable to shareholders of 110 million yuan, down 42.9% year-on-year [1] - In Q1 2024, the company achieved a revenue of 720 million yuan, a year-on-year increase of 7.7%, and a net profit of 20 million yuan, up 0.5% year-on-year [1] - The company is focusing on its dual-brand strategy and expanding its product categories, with expectations for continued new product launches in 2024 to stimulate demand and explore overseas markets [4][11] Summary by Sections Financial Performance - In 2023, the company’s revenue from home environment, water health, and personal health segments were 1.389 billion yuan, 1.16 billion yuan, and 580 million yuan, respectively, with year-on-year changes of -10.2%, +10.3%, and -1.4% [2] - The company’s gross margin improved by 1.3 percentage points to 30.8% in 2023, with specific margins of 25.4% for home environment, 37.6% for water health, and 30.7% for personal health [3] - For Q1 2024, the gross margin increased by 1.4 percentage points to 30.9%, with a net profit margin of 3.3% [4] Revenue and Profit Forecast - The company forecasts revenues of 3.477 billion yuan, 3.810 billion yuan, and 4.181 billion yuan for 2024, 2025, and 2026, respectively, with growth rates of 10.3%, 9.6%, and 9.7% [5] - The expected earnings per share (EPS) for 2024, 2025, and 2026 are 0.37 yuan, 0.47 yuan, and 0.51 yuan, respectively [4][11] Market Strategy - The company is leveraging its dual-brand strategy to expand its overseas market presence, primarily through the Delmar and Philips brands [2][4] - The online and offline sales channels generated revenues of 1.63 billion yuan and 1.53 billion yuan, respectively, with year-on-year changes of -10.9% and +3.1% [2]
水健康维持高增，销费压低盈利能力