FLYCO(SH:603868) EBSCN·2024-05-06 12:02Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company experienced a slight operational pressure in the short term, but the "Bole" sub-brand continues to show high growth rates [1] - In Q1 2024, the company reported revenue of 1.2 billion yuan, a year-over-year decrease of 15%, and a net profit attributable to shareholders of 200 million yuan, down 44% year-over-year [8] - The report highlights the strong growth of the "Bole" brand, which has successfully captured part of the market for cost-effective products previously held by the main brand [9] Financial Performance Summary - Q1 2024 revenue breakdown: - Feike brand sales on Tmall, JD, and Douyin were 150 million, 130 million, and 170 million yuan respectively, showing declines of 32%, 35%, and 34% year-over-year due to holiday disruptions and lower-end product sales [9] - Bole brand sales on Tmall, JD, and Douyin were 20 million, 20 million, and 10 million yuan respectively, with year-over-year growth rates of 85%, 20%, and 75% [9] - The gross margin for Q1 2024 was 57.1%, an increase of 1.0 percentage points year-over-year, while the net profit margin was 15.3%, down 8.0 percentage points year-over-year [9] - The report projects a decrease in net profit forecasts for 2024-2026, with expected figures of 1.05 billion, 1.16 billion, and 1.32 billion yuan respectively, reflecting downward adjustments of 9%, 12%, and 13% [9][10] Valuation Metrics - The company is positioned as a leader in the small home appliance industry, with core competencies in "R&D innovation" and "brand operation" [9] - The projected P/E ratios for 2024, 2025, and 2026 are 19, 17, and 15 respectively [9][10]