Newsletter summary

Company 23A revenue fell by 11.Tripledoublevideopokerstrategy.4%, net loss 4.Tripledoublevideopokerstrategy74 million yuan, the gross profit margin decreased; 24Q1 income increased by 5.45%, and net profit increased by 48.46%. The replenishment cycle begins, and revenue is expected to grow in 24 years, with the help of commercial product promotion. The investment suggests raising the revenue forecast, but we should pay attention to the risks such as market competition.

Text of news flash

[the company's revenue performance showed a positive change] during the 23A period, the company's revenue fell 11.40% year-on-year to 4.617 billion yuan, while the homing net profit lost 474 million yuan, a sharp drop of 278.40% compared with the same period last year. After deducting non-return, the net profit loss was 428 million yuan, down 293.05% from the same period last year. Despite the challenges, 23Q4's revenue was 1.149 billion yuan, an increase of 10.83% over the same period last year, and the net profit loss was 299 million yuan, deducting the non-parent net profit loss of 250 million yuan, down 568.26% and 631.59% respectively from the same period last year. However, after entering 24Q1, the company achieved revenue of 1.636 billion yuan, an increase of 5.45% over the same period last year, and net profit of 130 million yuan, an increase of 48.46% over the same period last year, deducting 132 million yuan of non-parent net profit, an increase of 58.49% over the same period last year, indicating a positive growth in both revenue and performance over the same period last year.

[replenishment cycle promotes revenue growth] 23 years, due to downstream channel destocking, high inflation in North America to curb consumer demand, North America "cold spring" weather and other adverse factors, the company's revenue is under pressure as a whole. But with the replenishment cycle,TripledoublevideopokerstrategyThe company's revenue growth rate has achieved positive growth for two consecutive quarters compared with the same period last year. Especially with the reduction of inventory by AmazonTripledoublevideopokerstrategyWith the completion of the company, the willingness to purchase for the company began to pick up, which is expected to contribute to 24 years of sales revenue growth of about 80%.

[commercial product territory continues to expand] in 2023, the company successfully launched a commercial zero-turn lawn mower OptimusZ, which has been recognized by professional customers. The company has also established a cooperative relationship with STIHL to produce related products. In addition, the company has also launched a number of commercial lithium zero-steering lawn mower products, as well as brand-new 82V commercial grass carts, handheld and other tools, actively layout the "commercial leader, comprehensive leading" strategy.

[multiple factors affect 23 years of earnings performance] in 23 years, the company's gross profit margin on sales was 22.72%, down 2.72 percentage points from the same period last year. The gross profit margin of 23Q4 sales was 11.24%, down 17.53% from the same period last year. The reasons for the decline in gross profit margin include lower income, weak cost amortization, increased promotional deductions and the digestion of high-priced inventory. The overall expense rate of the company increased, of which the sales / management / finance / R & D expense rate was 17.57%, 11.80%, 0.46%, 4.82%, respectively, an increase of 5.86%, 2.83%, 2.52%, 0.72% over the same period last year.

[investment advice and risk Tip] in the long run, with the continuous improvement of lithium battery permeability in the field of OPE, lithium OPE market still has broad development and market space. In the short term, with the end of the global OPE market channel inventory elimination cycle, the company is expected to achieve revenue growth by virtue of the advantages of the local lithium industry and the commercial sector of the first-mover layout. It is estimated that the 24-26 year net profit of the company will be 2.7 / 390 million yuan. However, factors such as market competition risk, lower-than-expected sales of new products, lower-than-expected sales of own brands, lower-than-expected export orders, rising prices of raw materials and rising freight costs may affect profits.