OPPLE(SH:603515) Huachuang Securities·2024-05-09 08:02Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 23 CNY per share [6][17]. Core Insights - The company achieved a revenue of 7.8 billion CNY in 2023, representing a year-on-year growth of 7.2%. The net profit attributable to shareholders was 0.92 billion CNY, up 17.8% year-on-year, while the net profit excluding non-recurring items reached 0.85 billion CNY, increasing by 34.2% [6][7]. - The company has demonstrated resilience in the lighting industry, optimizing its channel network and achieving steady operations despite a slight decline in the overall market size [7]. - The company plans to distribute a cash dividend of 8.5 CNY per 10 shares, resulting in a dividend payout ratio of 67.7%, which is an increase of 20.2 percentage points year-on-year [6][7]. Financial Performance Summary - In Q4 2023, the company reported a revenue of 2.28 billion CNY, a 10.5% increase, with a net profit of 0.27 billion CNY, down 4.6% year-on-year. The net profit excluding non-recurring items was 0.28 billion CNY, up 13.0% [6]. - For Q1 2024, the company achieved a revenue of 1.58 billion CNY, a 5.3% increase, with a net profit of 0.12 billion CNY, up 23.5% year-on-year, and a net profit excluding non-recurring items of 0.10 billion CNY, increasing by 36.4% [6][7]. - The company’s gross margin improved to 40.3% in 2023, up 4.6 percentage points year-on-year, primarily due to cost improvements and platform reforms [7]. Business Segment Performance - The home lighting segment saw significant growth, with retail and distribution channels performing well. The company focused on enhancing store images and product categories, leading to rapid revenue growth [7]. - The commercial lighting segment continued to expand its market share by investing in key industries such as commercial chains and industrial sectors [7]. - The online business segment accelerated the development of mid-to-high-end product lines, enhancing the integration of online and offline sales channels [7]. Future Projections - The company is expected to achieve net profits of 1.064 billion CNY, 1.216 billion CNY, and 1.353 billion CNY for the years 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 13, 12, and 10 [6][18].