Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 1.54, based on an 11x PE multiple for 2024 [2][6] Core Views - The company reported revenue of USD 1.429 billion in 2023, a year-on-year decline of 3.17% on a comparable basis, with net profit from continuing operations at USD 70 million, down 36.96% year-on-year [1] - Joyoung division revenue declined by 21% year-on-year to USD 1.053 billion due to weak demand in the domestic small household appliance market and intensified competition, while SharkNinja (SN) Asia-Pacific division revenue surged 137% year-on-year to USD 152 million, driven by strong sales of wireless vacuum cleaners in Japan and market expansion in Australia and New Zealand [1] - The company's gross margin for continuing operations in 2023 was 34.1%, down 2.3 percentage points year-on-year, with the Joyoung division's gross margin declining by 1.0 percentage point due to increased promotional activities and a higher proportion of low-margin products, while the SN Asia-Pacific division's gross margin improved by 2.6 percentage points due to a higher proportion of high-margin products and channels [1] - The company's net profit margin for continuing operations in 2023 was 4.9%, down 2.6 percentage points year-on-year, primarily due to increased marketing and human resource investments for expanding the Asia-Pacific market and one-time professional service fees related to business restructuring [1] Financial Forecasts - The report forecasts the company's net profit attributable to shareholders for 2023-2025 to be USD 132 million, USD 64 million, and USD 74 million, respectively, with EPS of USD 0.04, USD 0.02, and USD 0.02 [2][6] - Revenue is expected to grow by 7.1% in 2024 and 14.2% in 2025, reaching USD 1.530 billion and USD 1.747 billion, respectively [3] - The company's gross margin is projected to remain stable at around 34.1%-34.6% from 2023 to 2025, while the net profit margin is expected to decline to 4.2% in 2024 and 2025 [3] Business Performance by Region - Revenue from China declined by 20.6% year-on-year to USD 1.038 billion in 2023, while revenue from Japan increased by 43.7% year-on-year to USD 92 million [1] - The company entered new markets in Oceania, Singapore, and Malaysia, generating revenue of USD 44 million from Australia and New Zealand and USD 32 million from other markets in 2023 [1] Valuation and Peer Comparison - The company's 2024 PE multiple of 11x is based on a peer group average, with comparable companies including Supor, VESYNC, SEB SA, and Whirlpool Corporation, which have adjusted average PE multiples of 11.25x for 2024 [6][7]
九阳分部收入承压，SN亚太业务增速亮眼