Rongtai health(603579) 长江证券·2024-04-21 05:32Investment Rating - The report maintains a "Buy" rating for the company [13]. Core Views - The company achieved a revenue of 1.855 billion yuan in 2023, a year-on-year decrease of 7.47%, while the net profit attributable to the parent company was 203 million yuan, an increase of 23.43%. The net profit after deducting non-recurring gains and losses was 186 million yuan, up 47.78% year-on-year [10][11]. - In Q4 2023, the company reported a revenue of 557 million yuan, a year-on-year increase of 25.84%, and a net profit of 50.97 million yuan, up 32.19% year-on-year [10][11]. - The company expects a significant increase in net profit for Q1 2024, with a forecast of 57.55 million to 62.89 million yuan, representing a year-on-year increase of 122.5% to 143.11% [10][11]. - The company plans to distribute a cash dividend of 10.00 yuan per 10 shares (tax included) and to increase capital by 3 shares for every 10 shares held [10][11]. Financial Performance - The company's gross profit margin improved by 4.3 percentage points to 30.82% in 2023, primarily due to a decrease in raw material costs and proactive product structure optimization [11]. - Sales expenses decreased by 2.47% year-on-year, while management expenses increased by 11.08% due to rising employee compensation and consulting fees [11]. - The operating profit increased by 21.09% year-on-year, with a significant growth of 70.47% in operating profit in Q4 2023 [11]. Market Position and Outlook - The company is positioned as a leader in the domestic massage chair market and a significant global manufacturer, with a solid foundation in R&D, industrial design, and quality control [15]. - The company anticipates a recovery in demand, projecting net profits of 241 million, 287 million, and 339 million yuan for 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 12.73, 10.72, and 9.05 [15].