Jason Furniture (Hangzhou) (SH:603816) Changjiang Securities·2024-05-14 05:02Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company achieved revenue of 19.212 billion yuan, net profit attributable to shareholders of 2.006 billion yuan, and net profit excluding non-recurring items of 1.781 billion yuan in 2023, representing year-on-year growth of 7%, 11%, and 15% respectively [6][7]. - In Q4 2023, the company reported revenue of 5.076 billion yuan, net profit of 0.505 billion yuan, and net profit excluding non-recurring items of 0.416 billion yuan, with year-on-year growth of 19%, 23%, and 58% respectively [6][7]. - For Q1 2024, the company achieved revenue of 4.350 billion yuan, net profit of 0.420 billion yuan, and net profit excluding non-recurring items of 0.376 billion yuan, with year-on-year growth of 10%, 5%, and 10% respectively [6][7]. - The company is experiencing steady growth in domestic sales and is continuously advancing towards a comprehensive home furnishing strategy [6][7]. - In external sales, the sofa segment is gradually recovering with strong growth, while the mattress segment faces some disruptions [6][7]. - The company has seen significant profit improvement in 2023, and the overall performance in Q1 2024 is expected to remain stable [6][7]. Summary by Sections Domestic Sales - Domestic sales grew by 6% year-on-year in 2023, with expectations for continued recovery in Q4 [6][7]. - The company is transitioning towards integrated stores and expanding targeted store formats, with over 300 integrated stores established in 2023 [6][7]. External Sales - External sales increased by 7% year-on-year in 2023, with a projected growth of 21% in H2 [6][7]. - The sofa category is showing steady improvement, while the mattress segment is under pressure due to anti-dumping impacts and production capacity adjustments [6][7]. Profitability - The gross profit margin improved by 2.0 percentage points in 2023, with contributions from reduced raw material costs and internal efficiency improvements [6][7]. - For Q1 2024, the gross profit margin increased by 0.9 percentage points, with net profit margins showing stable performance [6][7]. Strategic Initiatives - The company is enhancing channel efficiency and product capabilities, focusing on integrated operations and expanding into new retail channels [6][7]. - Significant progress has been made in supply chain and digital capabilities, with improved inventory turnover and a more comprehensive information system [6][7]. - The company aims to broaden its product and brand matrix to cover a wider price range and customer base, with a focus on functional sofas, mattresses, and customization as growth drivers [6][7].