Zhongtai International expects VESYNC (02148)'s revenue and net profit to rise to 700 million yuan and 97 million yuan respectively in 2024.
The Zhitong Finance App learned that Sino-Thai International released a research report stating that it maintained the VESYNC (02148) “buy” rating and raised the target price by 16.8% from HK$5.7 to HK$6.66.
The bank said VESYNC's profitability improved significantly due to strong overseas sales in 2023 and lower costs and shipping costs. Annual revenue increased 19.4% year over year to US$590 million (same below), and gross margin increased 17.9 percentage points to 46.9%. Non-Amazon channel revenue increased 61.2% year over year, and the Group will continue to expand this channel in the future.
The bank pointed out that VESYNC will focus on promotion on content marketing platforms this year, and management believes it can drive omnichannel product sales. Sino-Thai International expects the group's revenue and net profit to rise to 700 million yuan and 97 million yuan respectively in 2024. Net profit in 2023 was 77 million yuan, high expectations.