Investment Rating - The report maintains a "Buy" rating for the company [7][8]. Core Insights - The company has shown strong revenue and profit growth in Q1 2024, with revenue reaching 330 million RMB, a year-on-year increase of 33.8%, and net profit attributable to shareholders at 40 million RMB, up 126.7% year-on-year [8]. - The recovery in revenue is attributed to continuous inventory replenishment by downstream retailers and the introduction of new products, which are expected to accelerate revenue growth in 2024 [8]. - The company's profitability has improved, with a net profit margin of 13.1%, reflecting a 5.4 percentage point increase year-on-year, driven by reduced financial expenses and improved operational efficiency [8]. Financial Summary - Revenue (in million RMB) is projected to grow from 1,216 in 2023 to 2,458 in 2026, with a compound annual growth rate (CAGR) of 19.71% [3]. - Net profit (in million RMB) is expected to increase from 175 in 2023 to 364 in 2026, representing a CAGR of 25.95% [3]. - The diluted earnings per share (EPS) is forecasted to rise from 0.958 in 2023 to 1.991 in 2026 [3]. - The price-to-earnings (P/E) ratio is projected to decrease from 20.79 in 2023 to 10.25 in 2026, indicating an attractive valuation over the forecast period [3]. Market Context - The company operates in a market where the demand for tools and appliances is recovering, particularly in North America, which has positively impacted sales of small air compressors and vacuum cleaners [8]. - The report highlights the company's strong channel and manufacturing barriers, which are expected to support continued growth in revenue and profitability [8].
下游补库持续，Q1收入利润均好于预期