Hisense V.T.(SH:600060)2024-06-04 10:00Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of RMB 32.40, reflecting an 18x PE valuation for 2024 [10]. Core Insights - The company reported a revenue of RMB 53.62 billion for 2023, representing a year-on-year increase of 17.22%, and a net profit attributable to shareholders of RMB 2.10 billion, up 24.82% year-on-year [8][9]. - In Q1 2024, the company achieved a revenue of RMB 12.70 billion, a 10.61% increase year-on-year, but net profit attributable to shareholders fell by 24.81% to RMB 467 million [8][9]. - The company plans to distribute a dividend of RMB 8 per 10 shares, resulting in a payout ratio of 50.16% and a yield of 2.98% based on the stock price as of May 30 [8][9]. Financial Performance - The smart display terminal business sold 26.54 million units, generating RMB 41.26 billion in revenue, a 17.01% increase year-on-year, although the gross profit margin decreased by 1.36 percentage points to 15.99% [9]. - The new display businesses, including laser and commercial displays, generated RMB 6.52 billion in revenue, up 40.6% year-on-year, with a gross profit margin of 31.68% [9]. - The overall gross profit margin for 2023 was 16.94%, down 1.29 percentage points year-on-year, while the net profit margin improved to 3.91% [9][10]. Future Outlook - Short-term demand for televisions is expected to increase due to major sporting events, with potential improvements in panel costs anticipated after H1 2024 [10]. - Long-term strategies include the company's focus on display technology upgrades, which are expected to enhance market share and profitability [10].