UE(SH:603600) Huachuang Securities·2024-06-13 00:31Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 15.0 CNY per share [1][14]. Core Insights - The company's furniture exports in May showed a significant year-on-year increase of 16.0%, amounting to 6.242 billion USD, driven by stable external demand and a low base effect from the previous year [1]. - The company is steadily expanding its domestic market presence, with online sales growth of 55.6% in 2023, while overall domestic revenue increased by 7.9% to 0.89 billion CNY [1]. - The company is focusing on brand building in the domestic market, which is expected to enhance brand awareness and revenue growth [1]. - The gross profit margin for the company increased by 3.5 percentage points to 22.9% in 2023, although net profit margin faced short-term pressure due to increased marketing expenses [1]. - The company anticipates recovery in overseas markets, supported by the successful launch of new production bases in Romania and Vietnam, which are expected to optimize costs [1]. Financial Summary - The company’s projected revenues for 2024, 2025, and 2026 are 4.401 billion CNY, 5.296 billion CNY, and 6.196 billion CNY, respectively, with year-on-year growth rates of 24.4%, 20.3%, and 17.0% [15]. - The projected net profit for 2024, 2025, and 2026 is 330 million CNY, 405 million CNY, and 488 million CNY, with corresponding growth rates of 10.8%, 22.7%, and 20.5% [15]. - The company’s earnings per share (EPS) are expected to be 0.99 CNY, 1.22 CNY, and 1.47 CNY for the years 2024, 2025, and 2026, respectively [15].