Open Source Securities released a research report saying that it maintains the "Buy" rating of Mingchuang Premium Products (09896), raises its 2024-2026 earnings forecast (the new fiscal year's settlement date is December 31), and expects its parent net profit to be 28.freespinsonregistrationnodeposit2021.6/35.1/43.0 billion yuan (previous value: 28.6/35.0/42.8 billion yuan), corresponding to an EPS of 2.3/2.8/3.4 yuan. The company achieved revenue of 3.724 billion yuan in 2024Q1, an increase of 26%, and adjusted net profit of 617 million yuan, an increase of 28%. Mingchuang Products has experienced high-quality domestic growth, and its overseas direct-sales market performance exceeded expectations. The bank is optimistic that overseas performance will continue to rise and the TOPTOY turning point has reached.
The report stated that in terms of profitability, the company's overseas profitability continues to be optimized & the TOPTOY turning point has reached, and profitability has sufficient upward momentum. (1) Gross profit margin: The gross profit margin in 2024Q1 was 43.4%(year-on-year +4.1pct), mainly due to the increase in the proportion of overseas high-margin direct sales revenue from 46% to 58% year-on-year. The optimization of overseas markets and TOPTOY product portfolio led to the increase in gross profit margin. (2) Period expense rate: The expense rate during the 2024Q1 period is 23.8%(year-on-year +3.7pct), which remains generally at a reasonable level under the rapid expansion of direct sales. (3) Operating profit margin: 2024Q1OPM is 20.0%(year-on-year +0.5pct), among which the domestic market is basically stable, overseas agencies/direct sales have improved, and TOPTOY has increased to medium and low double digits.freespinsonregistrationnodeposit2021; We are optimistic that TOPTOY's bargaining power will increase and the profit model will continue to be optimized under industry clearing. Overseas direct sales will exert a synergistic effect to drive OPM's improvement. (4) Net interest rate: The net interest rate in 2024Q1 is 16.6%(year-on-year +0.2pct).