Jinwu Financial News | According to the China Merchants Securities Research Report, Quanfeng Holdings (02285) announced the results for the year 23. Overall revenue fell from US$1,989 million in '22 to US$1,375 million in '23, down 30.9% year on year; gross margin was 28.1%, down 2.3 pct year on year, with net profit loss of US$37 million. According to the bank, OPE growth fell short of expectations, and power tools are facing a slowdown in housing demand, the industry's inventory removal cycle, and a decrease in sales revenue. Furthermore, internal and external improvements continue, and future profit margins are yet to be repaired.
According to the bank, as a leading power tool and OPE leader, the company has deep product technology accumulation, EGO/FLEX, etc. anchor high-end consumers. Due to macroeconomic uncertainty in 2023, the main customers preferred more conservative inventory policies, and the 2023 revenue and profit sides were lower than expected, so the bank lowered its profit forecast for 24-25 years. The bank expects the company to achieve net profit of 725, 9.84 and 1.07 billion yuan in 2024 to 2026, respectively, with year-on-year increases of +376%, +36% and +13%. The current stock price corresponds to 2024 PE is 15.8X. Maintain a “Highly Recommended” investment rating.