Jiangshan Oupai(603208) 海通国际·2024-05-14 10:32Investment Rating - The investment rating for the company is "Outperform" [2][4]. Core Insights - The company reported a revenue of RMB 3.74 billion for 2023, representing a year-on-year increase of 16.5%. The net profit attributable to shareholders was RMB 390 million, with a net profit margin of 10.4% [18][11]. - The overall gross profit margin (GPM) for 2023 was 26.0%, an increase of 2.2 percentage points compared to the previous year. The expense ratio for the period was 13.8%, a decrease of 2.7 percentage points [19][3]. - For the first quarter of 2024, the GPM decreased to 18.8%, down 2.9 percentage points, while the expense ratio increased to 14.1%, up 0.3 percentage points [19][3]. Financial Performance - The company expects net profits of RMB 440 million and RMB 500 million for 2024 and 2025, respectively, with year-on-year growth rates of 12.0% and 14.5% [4][22]. - The current stock price corresponds to a 2024 price-to-earnings (PE) ratio of 9 times, with a target price set at RMB 36.96, reflecting a 15% decrease from previous estimates [4][22]. - The revenue breakdown by product for 2023 shows that plywood doors, solid wood composite doors, cabinets, and other products generated revenues of RMB 2.169 billion, RMB 0.829 billion, RMB 0.232 billion, and RMB 0.301 billion, respectively, with year-on-year changes of +8.6%, +22.7%, +11.8%, and +71.5% [20][12]. Operational Efficiency - The company had over 36,000 franchise distributors by the end of 2023 and is expanding its direct and agency engineering businesses, establishing a comprehensive and diversified marketing network [21][58]. - The cash flow from operating activities for 2024 is projected to be RMB 784 million, indicating a significant increase from the previous year [16].