Jason Furniture (Hangzhou) (603816) Haitong Securities·2024-05-26 07:01Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Views - The company reported stable revenue growth in 2023, achieving a revenue of 19.212 billion yuan, a year-on-year increase of 6.67%, and a net profit attributable to shareholders of 2.006 billion yuan, up 10.70% year-on-year [3][4] - Sofa business remains strong, with revenue of 9.350 billion yuan in 2023, a growth of 4.21% year-on-year, while bed and custom furniture segments saw significant growth, with revenues of 4.104 billion yuan and 0.880 billion yuan, respectively, both growing over 15% year-on-year [3][6] - The company is expected to achieve net profits of 2.236 billion yuan, 2.520 billion yuan, and 2.768 billion yuan for 2024, 2025, and 2026, respectively, reflecting a growth rate of 11.5%, 12.7%, and 9.9% [3][4] Financial Summary - In 2023, the company achieved a gross margin of 32.8%, with expectations to increase to 34.2% by 2026 [4][9] - The company’s sales net profit margin for 2023 was 10.50%, with a slight decrease to 9.83% in Q1 2024, while the gross margin improved from 32.83% to 33.08% [5] - The projected revenue for 2024 is 21.339 billion yuan, with a year-on-year growth of 11.1% [4][9] Business Segments - Sofa segment revenue is projected to reach 10.388 billion yuan in 2024, with a growth rate of 11.1% [6] - The bed segment is expected to grow to 4.974 billion yuan in 2024, reflecting a growth rate of 21.2% [6] - Custom furniture revenue is anticipated to reach 1.056 billion yuan in 2024, with a growth rate of 20.0% [6] Valuation - The current closing price corresponds to a PE ratio of 14 and 12 times for 2024 and 2025, respectively, with a target valuation range of 40.82 to 43.54 yuan based on a PE of 15 to 16 times for 2024 [3][4]