Huakai Yibai(SZ:300592) Guotai Junan Securities·2024-05-22 01:39Investment Rating - The report maintains a rating of "Buy" for the company, with a target price of 19.35 CNY, unchanged from the previous rating [1]. Core Views - The company plans to acquire Tongtuo Technology, which is expected to enhance its competitive edge and future growth prospects [1]. - The report forecasts EPS growth for 2024-2026 at 1.13, 1.43, and 1.73 CNY, representing growth rates of 37%, 27%, and 21% respectively [1]. Summary by Sections Investment Highlights - The acquisition of Tongtuo Technology is anticipated to create synergies, strengthen competitive positioning, and improve product offerings [1]. - The company expects to achieve better inventory turnover and cost control through this acquisition [1]. - The financial outlook shows significant revenue growth, with projected revenues of 6,518 million CNY in 2023 and 8,528 million CNY in 2024, reflecting a growth rate of 31% [3]. Financial Summary - The company reported a net profit of 217 million CNY in 2023, with a substantial increase of 348% compared to the previous year [3]. - The operating profit margin is projected to stabilize at around 6.5% for 2024, with a return on equity (ROE) expected to reach 17.6% [3]. - The report indicates a low valuation with a PE ratio of 12 times, suggesting the stock is undervalued [1][3]. Market Position - The company has a market capitalization of 5,640 million CNY, with a trading range of 13.93 to 31.99 CNY over the past year [1][8]. - The report highlights the company's strong presence in the consumer goods sector, particularly in the e-commerce space, with significant sales through platforms like Amazon and eBay [1].