OPPEIN(SH:603833) Guotai Junan Securities·2024-05-13 23:32Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of 85.77 yuan, down from the previous target of 85.95 yuan [1][4]. Core Views - The company has shown strong growth in direct sales channels, and the expected organizational changes are anticipated to enhance operational efficiency and profitability [1]. - The company's revenue for 2023 reached 22.782 billion yuan, a year-on-year increase of 1.35%, while the net profit attributable to shareholders was 3.036 billion yuan, up 13% [1]. - The direct sales revenue in Q1 2024 increased by 66.95% year-on-year, indicating the effectiveness of the company's strategy in the home furnishing sector [1]. Summary by Sections Financial Performance - The company achieved a revenue of 22.782 billion yuan in 2023, with a net profit of 3.036 billion yuan, reflecting a 1.35% and 13% increase respectively [1][2]. - For Q1 2024, the revenue was 3.621 billion yuan, showing a 1.43% increase year-on-year, while the net profit was 218 million yuan, up 43% [1]. Operational Efficiency - The company has optimized store operations and is expected to see the benefits of organizational changes, which should lead to steady growth in performance [1]. - The gross margin for Q1 2024 was reported at 29.98%, an increase of 3.30 percentage points year-on-year, while the net margin was 6.03%, up 1.88 percentage points [1]. Market Position - The company is positioned as a leader in the customized home furnishing market, with a focus on integrating various product categories to enhance customer experience and drive sales [1][4]. - The report highlights the company's competitive advantage and the potential for growth as it continues to adapt to market demands and consumer preferences [4].