Entive(300911) 长江证券·2024-05-22 05:02Investment Rating - The report maintains a "Buy" rating for the company [7][21]. Core Views - The company is facing operational pressure due to a decline in external demand, with Q1 2024 revenue dropping by 44.49% year-on-year, primarily attributed to the ongoing downturn in the real estate sector affecting the integrated stove industry [6][21]. - Despite the challenges, the company is recognized as a leading modern kitchen appliance manufacturer, focusing on product innovation and channel expansion to improve its market position [21]. - The company is expected to recover from the current operational challenges, with projected net profits for 2024, 2025, and 2026 estimated at 188 million, 205 million, and 224 million yuan respectively, corresponding to PE ratios of 18.24, 16.76, and 15.30 times [7][21]. Financial Performance Summary - In Q1 2024, the company reported a revenue of 127 million yuan, a significant decrease of 44.49% year-on-year, and a net profit attributable to the parent company of 4.53 million yuan, down 88.88% year-on-year [6][21]. - The gross margin for Q1 2024 decreased by 4.85 percentage points, influenced by reduced sales scale and rising raw material prices [6]. - The company's cash flow from operating activities saw a drastic decline of 98.84% year-on-year, primarily due to reduced cash receipts from product sales [6][21]. Market Position and Strategy - The company holds a strong position in the integrated stove market, with an online retail market share of 9.0% and offline retail market share of 11.7% as of Q1 2024 [21]. - The company is actively promoting technological innovation and product iteration, aiming to enhance product quality and performance while expanding its multi-channel sales strategy [21].