Event description company 2024Q1 realized revenue / return net profit / deducted non-net profit 18Topplaytoearngamescrypto. 42/1Topplaytoearngamescrypto.01Plus 0.96 million yuanTopplaytoearngamescrypto, with an increase of 45%, 15%, 14%. Event comments 2024Q1 income continues the trend of high growth, Europe and the United States have a bright performance. 24Q1 revenue also increased by 45%, mainly due to the smooth expansion of the company's new products and strengthened marketing efforts. 1) Sub-regionTopplaytoearngamescryptoQ1 US growth rate is estimated to continue a better growth trend (2023Q4 increased by 36%), during which the overall prosperity of US e-commerce channels was good, and Q1 US non-store retail channels also increased by 10%. Europe is estimated to continue its high performance around Amazon's leading position on multinational sites (the company currently ranks first in the category of household furniture on Amazon's German / French / British / Italian sites), while Otto channels are estimated to continue to expand rapidly (81% in 2023, or about 4%). 2) category: it is estimated that the household category continues to grow better, which is related to factors such as the contribution of new products, and the furniture and pet categories may also have a better performance. In 2023, furniture / household / pet / courtyard income + 5%, 22%, 37%, 12%. 2024Q1's profit has dropped slightly and is expected to improve in the future. Q1 gross profit margin decreased 0.8pct compared with the same period last year, in which the increase in the proportion of European income and the optimization of supply chain have a positive impact on gross profit margin, but under the disturbance of shipping price and tail pie cost, gross profit margin is under some pressure. Q1 sales / management / R & D expense rates are respectively year-on-year + 1.6/-0.01/-0.3pcts, in which the increase in sales expense rate is mainly due to the company's increased investment in sales and publicity and the allocation of sales staff for long-term development. The financial expense of Q1 company is 25.54 million yuan, or the exchange loss caused by the appreciation of RMB against the euro at the end of the period, in addition, hedging produces a certain income (the net income of fair value change is about 3.91 million yuan). The focus of the company's work this year includes: 1) Product serialization, the company focuses on SONGMICS HOME core brand to further build a series of landscape products, and the first series of products EKHO Collection has been released and listed in 2023, covering restaurants, bedrooms, restaurants, kitchens and so on. 2) continuous overall cost reduction and efficiency improvement, including promoting the standardization and normalization of materials, processes, components and connectors in production, promoting secondary material collection, launching the third phase of IBP supply network and strengthening the level of information technology in the ecology to continuously improve efficiency, etc., at the same time, by increasing the procurement share in Southeast Asia to optimize cost-efficiency, the company aims to increase the proportion of shipments from Southeast Asia to the United States to about 20%. 3) optimize the layout of warehouse allocation, promote pre-warehouse delivery in France and Spain in Europe, encrypt overseas warehouses in the United States to increase the spontaneous share of the final process, and optimize the efficiency and cost of final performance. 4) Europe increases steadily, surpassing the United States, including attaching importance to Amazon Vendor channels, focusing on TOP Listing products, and so on. Brand pioneer, deeply ploughing furniture category, relying on the manufacturing advantages of Chinese household industry chain, is committed to creating "online Ikea". At present, the company still has a lot of room to improve the level of more than 5000 SKU to Standard Ikea; in the future, it will continue to drive growth by increasing its share, rubbings (new home textile category), extension channels (OTTO, Mano, etc.), as well as new cross-border e-commerce platforms such as Shein and Tiktok Shop, and offline KA channels such as Hobby Lobby, etc.) and expand the market (Mexico, Australia, etc.). In the medium and long term, the company promotes the serialization and differentiation of product research and development, and continuously improves the management and efficiency of supply chain. The company is expected to achieve a net profit of 480 million yuan in 2024-2025, compared with a pre-PE of 20cm 16x, maintaining a "buy" rating. Risk tips: 1, the improvement of external demand is lower than expected; 2, the operating effect of the company's e-commerce platform is not as good as expected. [disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.

[disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.