Hotata(SH:603848) Huachuang Securities·2024-05-29 06:01Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [10]. Core Insights - The company reported significant growth in revenue and net profit for 2023, with revenue reaching 1.69 billion yuan, a year-on-year increase of 22.2%, and net profit attributable to shareholders at 330 million yuan, up 49.7% [10]. - In Q1 2024, the company continued its growth trajectory, achieving revenue of 290 million yuan, a 5.7% increase year-on-year, and net profit of 60 million yuan, up 15.1% [10]. - The company's smart home products saw a revenue increase of 26.4% in 2023, contributing to 84.9% of total revenue [10]. - The company has successfully expanded its online and offline channels, with online revenue growing by 13.7% and offline revenue increasing by 37.5% in 2023 [10]. Financial Performance Summary - For 2023, the company achieved a gross margin of 51.4%, an increase of 5.0 percentage points year-on-year, and a net profit margin of 19.4%, up 3.6 percentage points [10]. - The company expects net profits to grow to 395 million yuan in 2024, representing a 20.8% year-on-year increase, with projected earnings per share of 0.98 yuan [20]. - The current stock price corresponds to a price-to-earnings ratio of 18 for 2023, which is expected to decrease to 11 by 2026 [20]. Future Outlook - The company is positioned as a leader in the smart drying sector and is expanding into smart lock products, which is anticipated to create a second growth curve [10]. - The target price for the stock is set at 19.56 yuan, based on a relative valuation method applying a 20x price-to-earnings ratio for 2024 [10].