Henglin(SH:603661) Soochow Securities·2024-04-27 00:00Investment Rating - The report maintains a "Buy" rating for the company [1][6]. Core Insights - The company achieved a revenue of 8.19 billion yuan in 2023, representing a year-on-year growth of 25.8%, while the net profit attributable to shareholders decreased by 26.6% to 260 million yuan, aligning with expectations [6]. - The integration of Yongyu Home contributed to revenue growth, but impairment provisions negatively impacted performance. The revenue growth was primarily driven by the cross-border e-commerce business and the full-year consolidation of Yongyu Home [6]. - The company anticipates an improvement in external sales demand and expects its OEM manufacturing business to return to a growth trajectory in 2024, supported by a recovery in furniture demand and expansion into new markets [6]. - The cross-border e-commerce segment is rapidly developing, with significant sales growth on platforms like TikTok, and the company has established five distribution centers in North America to enhance logistics efficiency [6]. - The profit forecast for 2024 and 2025 has been revised upwards to 550 million yuan and 660 million yuan, respectively, with an expected EPS of 3.99 yuan and 4.78 yuan [6]. Financial Summary - The company reported total assets of 9.583 billion yuan in 2023, with a debt-to-asset ratio of 64.87% [2][3]. - The projected operating revenue for 2024 is 9.84 billion yuan, with a year-on-year growth of 20.08% [3][17]. - The net profit for 2024 is forecasted to be 554.54 million yuan, reflecting a significant recovery from the previous year [3][17]. - The gross profit margin for 2023 was 23.8%, an increase of 2.0 percentage points from the previous year, attributed to improved supply chain management [6].