Investment Rating - The investment rating for the company is "Buy" (maintained) [4][17]. Core Views - The company is expected to perform better than market expectations in Q1 2024, with profits slightly exceeding market forecasts. The performance is anticipated to improve sequentially throughout 2024 [7][17]. - The company is positioned in the high-growth home medical device sector, with a focus on enhancing brand influence through participation in major exhibitions and a robust product lineup [17][18]. - The company has a high dividend yield of over 3% for 2023, with a payout ratio of 97%, indicating a commitment to returning value to shareholders [8][18]. Financial Performance Summary - In 2023, the company achieved revenue of 28.54 billion yuan, a decrease of 4.14% year-on-year, with a net profit of 2.54 billion yuan, down 15.71% [27]. - For Q1 2024, the company reported revenue of 8.07 billion yuan, a decline of 5.64%, and a net profit of 1.01 billion yuan, down 24.75% [27]. - The company expects net profit for 2024-2026 to be 4.00 billion yuan, 5.00 billion yuan, and 6.25 billion yuan respectively, with corresponding EPS of 1.91 yuan, 2.39 yuan, and 2.99 yuan [17][27]. Market Position and Strategy - The company is expanding its hearing aid business, having signed contracts for 820 direct-operated hearing fitting centers, with 765 currently operational, covering 20 provincial markets and 128 prefecture-level markets [8][17]. - The company is leveraging interest e-commerce platforms for sales, achieving over 200% year-on-year growth in 2023 [8][17]. - The company is also focusing on international expansion, with revenue from overseas operations reaching 49.87 million yuan in 2023, accounting for 2% of total revenue [8][17]. Valuation Metrics - The current stock price is 37.87 yuan, with a market capitalization of 79.24 billion yuan and a circulating market value of 34.30 billion yuan [15]. - The projected P/E ratios for 2024, 2025, and 2026 are 20.0, 16.0, and 12.8 respectively, indicating potential for valuation improvement as net profit margins are expected to rise [17][28].
广参展提升品牌力，2024Q1轻装上阵，超市场预期