Henglin(SH:603661) Tianfeng Securities·2024-05-17 03:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 49.4 CNY, indicating an expected return of over 20% within the next six months [14]. Core Insights - The company reported a revenue of 8.2 billion CNY in 2023, representing a 26% year-on-year growth, while the net profit attributable to the parent company was 263.1 million CNY, a decrease of 27% [14]. - In Q1 2024, the company achieved a revenue of 2.4 billion CNY, a 39% increase year-on-year, with a net profit of 100 million CNY, up 31% [14]. - The company is focusing on cross-border e-commerce as a core growth driver, with significant sales growth through platforms like TikTok and Amazon [14]. Financial Data Summary - Revenue (in million CNY): - 2022: 6,514.93 - 2023: 8,194.59 - 2024E: 9,620.29 - 2025E: 11,253.81 - 2026E: 13,354.90 - Growth Rate: 2023 (25.78%), 2024E (17.40%), 2025E (16.98%), 2026E (18.67%) [4] - Net Profit (in million CNY): - 2022: 352.86 - 2023: 263.10 - 2024E: 552.28 - 2025E: 670.55 - 2026E: 817.43 - Growth Rate: 2024E (109.91%), 2025E (21.41%), 2026E (21.90%) [4] - Earnings Per Share (EPS): - 2022: 2.54 - 2023: 1.89 - 2024E: 3.97 - 2025E: 4.82 - 2026E: 5.88 [4] - Price-to-Earnings Ratio (P/E): - 2022: 19.47 - 2023: 26.11 - 2024E: 12.44 - 2025E: 10.25 - 2026E: 8.40 [4] - Price-to-Book Ratio (P/B): - 2022: 2.10 - 2023: 2.02 - 2024E: 1.82 - 2025E: 1.60 - 2026E: 1.41 [4] Business Performance - The company has established five warehousing and distribution centers in North America to enhance its cross-border e-commerce capabilities [14]. - The office furniture segment generated 3.5 billion CNY in revenue in 2023, a 4% increase, while the new material flooring segment saw a remarkable 557% increase in revenue [14]. - The company is actively expanding its market presence and enhancing its marketing strategies to reach new customers, particularly in the Middle East and South America [14].