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The company announced 2024Q1 performance and 2023 annual equity distribution implementation plan. In 2024Q1, the company achieved a revenue of 3.999 billion yuan, - 1.97% YoY, a net profit attributable to the parent company of 181 million yuan,+28.88% YoY, and a net profit not attributable to the parent company of 151 million yuan,+11.78% YoY. In 2023, the Company will distribute cash dividends of RMB 3.38 (tax included) for every 10 shares.
Comments:
Leading position in the industry, with steady growth in performance. The company focuses on two core businesses of brand lighting and LED intelligent manufacturing, deepens the integrated layout of the LED industry chain to achieve sector synergy, constantly optimizes the product portfolio, provides high-quality lighting solutions, and has a leading position in the global lighting industry. 24Q1 The company's steady operation achieved a revenue of 3.999 billion yuan, -1.97% year-on-year; The gross profit margin remained resilient and increased to 30.28%,+0.31 pct year-on-year. On the expense side, 24Q1 interest expense decreased, and the financial expense rate was -0.04%, -1.79 pct year-on-year. On the profit side, the 24Q1 net profit attributable to the parent company was 4.54%,+1.09 pct year-on-year, and the net profit attributable to the parent company steadily increased to 181 million yuan,+28.88% year-on-year.
Landvance&Mullinson create brand advantages, and strong channels+intelligent manufacturing support product globalization.
On the brand side, the company has a number of well-known brands and their series of products, forming unique brand advantages: 1) The "Landvance" brand system operated overseas has a broad and deep market foundation in Europe and the United States; 2) After more than 20 years of precipitation and accumulation, the domestically operated "Mulensen" brand has established an excellent reputation in the industry. On the channel side, the company makes full use of the two domestic and foreign supply chain systems and market services to promote the construction of two major online and offline marketing channels. Its products are deeply embedded in major cities in China and widely cover key overseas regions. Its business spreads across more than 150 countries and regions around the world. On the manufacturing side, the company attaches great importance to the investment in automation and intelligence, continues to promote the digital transformation and intelligent manufacturing strategy, establishes a large-scale intelligent factory, integrates the industrial chain to carry out the whole process of digital operation and management, and significantly improves the production efficiency and product quality: in 2023, the company's output will be+20.70% year on year, the sales volume will be+28.35% year on year, and the production and sales rate will be 99.57% year on year,+5.93 pct year on year, Capacity release is good and sufficient.
Continue to recommend overseas energy storage business, which is expected to create new growth points of performance. At the Frankfurt Lighting Exhibition in March 2024, Landvance exhibited for the first time new photovoltaic energy solutions for household and professional markets, including solar panels, inverters, battery energy storage and control systems. In the future, overseas energy storage business is expected to become a new growth point of the company's performance.
It is planned to implement a high proportion of dividends or buybacks, and the plan shows confidence in future development. In April 2024, the company formulated a dividend or repurchase plan for the next three years: from 2024 to 2026, it is planned to use no less than 50% of the net profit attributable to the parent company for cash dividends or repurchases, and carry out special dividends or repurchases to cancel shares irregularly every year, with an average annual amount of no less than 30% of the net operating cash flow.
Profit forecast and investment rating: We believe that the company has a leading position in the industry, solid business fundamentals, and significant advantages in all links of the LED industry chain. With the continuous release of impairment pressure in recent years, more performance may be expected in the future. It is estimated that the company will achieve an operating revenue of 187.33/20015/212.552 billion yuan in 2024-2026, with a net profit attributable to the parent of 601/807/1045 million yuan, corresponding to a PE of 20.80/15.49/11.96 times, which will be covered for the first time and given a "buy" rating.
Risk warning: price fluctuation of raw materials; Demand is less than expected; Industry competition intensifies
