SOLEX(SH:603992) Tianfeng Securities·2024-05-07 10:32Investment Rating - The investment rating for the company is "Buy" (maintained) with a target price not specified [11] Core Views - The company has shown significant growth in its beauty and health segment, with a 79% increase in revenue for beauty health products in 2023 [4] - The company is actively expanding its product offerings in the beauty and health sector, leveraging AIOT technology to enhance its "IDM hardware platform" strategy [6][21] - The company reported a net profit of 3.5 billion yuan in 2023, a 35% increase year-on-year, despite a slight decline in overall revenue [4] Financial Performance - In Q1 2024, the company achieved a gross margin of 35.5%, up 2 percentage points year-on-year, and a net margin of 16.4%, up 8 percentage points [2] - The company's total revenue for 2023 was 30 billion yuan, a decrease of 6% compared to the previous year, with a notable increase in net profit [4] - The company’s overseas revenue in 2023 was 19 billion yuan, down 10%, while domestic revenue was 10 billion yuan, up 2% [7] Product Segmentation - The kitchen and bathroom health product segment generated 2.6 billion yuan in revenue, a decrease of 7%, while the beauty health product segment saw a significant increase [4] - The company is focusing on developing innovative products in the beauty and health categories, including various smart health devices [20][22] Research and Development - The company has increased its R&D investment to enhance its product offerings, including technologies for beauty showers, oral care devices, and skin detection technologies [8] - The company is leveraging its internal R&D platform to incubate new smart health hardware, aiming to expand into emerging health technology markets [23] Future Outlook - The company expects to achieve net profits of 4.90 billion yuan, 5.98 billion yuan, and 7.21 billion yuan for the years 2024, 2025, and 2026 respectively, with corresponding EPS of 1.20, 1.47, and 1.77 yuan per share [21]