SANFER ELECTRIC(SH:605336) Guotai Junan Securities·2024-05-09 02:02Investment Rating - The report maintains a "Buy" rating for the company with a target price adjusted to 17.40 yuan [1][31]. Core Views - The company is expected to experience a recovery in performance despite short-term pressure on demand and a competitive market environment. The earnings forecast for 2024-2026 is adjusted to EPS of 1.09/1.18/1.27 yuan, reflecting a cautious approach [1][31]. - The overall industry is facing a slow recovery, and the company's product mix is expected to optimize, with a shift towards lower-priced products impacting average selling prices [1][33]. Summary by Sections Performance Overview - The company's revenue for Q1 2024 was 1.17 billion yuan, down 33% year-on-year, with a net profit of 0.22 billion yuan, down 45% [1][19]. - The gross margin for Q1 2024 was 44.59%, a decrease of 3.12 percentage points year-on-year, while the net margin was 18.94%, an increase of 3.94 percentage points year-on-year [1][34]. Financial Forecast - The financial projections indicate a revenue of 872 million yuan for 2024, with a slight recovery expected in subsequent years [1][31]. - The company’s operating profit is forecasted to improve gradually, with EBIT margins expected to reach 23.4% in 2024 [1][32]. Industry Context - The integrated stove market is experiencing a high average price, which has increased the purchasing threshold for consumers, contributing to a decline in overall sales [1][33]. - The competitive landscape remains intense, with the company adapting its sales structure to include a higher proportion of lower-priced products, which is expected to affect overall pricing strategies [1][29].