Investment Rating - The investment rating for the company is "Buy" [1][4]. Core Views - The company's revenue remained stable due to adjustments in sales policies, but profitability is under short-term pressure. In 2023, the company achieved revenue of 7.65 billion (+1.8%) and a net profit attributable to shareholders of 420 million (-28.4%) [2][11]. - The company is accelerating new product development to enhance competitiveness and adjusting sales policies to increase promotions across all channels, leading to a slight revenue increase but significant pressure on profits due to pricing factors [2][11]. - The proportion of smart products is increasing, with smart toilets showing good growth. In 2023, sanitary ceramics revenue was 3.74 billion (+6.6%), with smart toilets contributing 1.56 billion (+12.5%) [2][11]. - The company is focusing on a retail-centric omnichannel strategy, with direct sales showing significant growth. In 2023, direct sales revenue increased by 20.0% to 1.04 billion [2][11]. Summary by Sections Financial Performance - In 2023, the company reported a gross margin of 28.3% (-4.5 percentage points) and a net margin of 5.6% (-2.3 percentage points). The gross margin is expected to decline further in Q1 2024 to 24.4% [2][11]. - The company adjusted its profit forecasts, expecting net profits for 2024-2026 to be 480 million, 560 million, and 630 million respectively, with year-on-year growth rates of 12%, 18%, and 11% [2][11]. Revenue Breakdown - Revenue from different product segments in 2023 included: sanitary ceramics at 3.74 billion (+6.6%), hardware at 2.10 billion (+1.5%), and bathroom furniture at 770 million (-4.6%). Tiles and bathtubs saw declines of 15.8% and 6.2% respectively [2][11]. - The company is expanding its e-commerce presence, with online sales increasing by 6.7% to 1.61 billion in 2023, while traditional retail channels faced a decline [2][11]. Future Outlook - The company anticipates improvements in profitability through cost reduction and efficiency enhancements. The focus will be on maintaining competitive pricing while managing costs effectively [2][11].
2023年报、2024年一季报点评：收入维稳，业绩短期承压，期待后续盈利改善