Company Profile　　Joyoung Co., Ltd. is a China-based company, principally engaged in the research and development, manufacture and distribution of small kitchen appliances. The Company's products include soymilk makers, induction cookers, blenders, juicers, electric pressure cookers, electrical kettles, rice cookers, water purifiers, soybean materials and commercial soymilk makers, among others. The Company distributes its products within domestic market and to overseas markets. (Source: MarketScreener).　　Event　　Joyoung Co., Ltd. (“Joyoung”/ the company) reported its financial results for the fiscal year ended December 31, 2022.　　In 2022, Joyoung reported CNY 10.177 billion in revenue, a decrease of 3.45% compared to a year earlier; its net income attributable to shareholders dropped by 28.98% year on year (YoY) to stand at CNY 530 million; its net income deducting non-recuring items came in at CNY 547 million, down 8.30% from a prior year.　　Joyoung’s gross margin was 29.09%, up 1.30 percentage points (pps) from a year earlier; its net margin attributable to shareholders lost 1.87pps versus a year earlier to 5.20%.　　For 4Q22 alone, the company reported CNY 3.252 billion in revenue, down 7.32% from a year ago; its net income attributable to shareholders came in at CNY 25 million , a tumble of 69.79%YoY; its net income deducting non-recurring items climbed by 76.66% from a year earlier to CNY 89 million.　　Its gross margin was 29.84%, up 6.35pps from a year earlier while its net margin attributable to shareholders stood at 0.77%, 1.58pps lower than it was a year ago.　　Joyoung plans to distribute CNY 3 (before tax) for every 10 shares, with cash dividend rate at 81.77%.　　Comments　　Joyoung saw a recovery in its main business and its new products are accumulating strength for a take-off.　　By businesses, Joyoung’s food processing machine/nutrient pots/ western small household appliances/ cookers made a revenue of CNY 3.273 billion/ CNY 3.706 billion/ CNY 2.248 billion/ CNY 634 million, down 7.50 % YoY/ down 3.30 %YoY/ up 4.97%YoY / down 15.60% YoY.　　The company’s main business steadily recovered, with food processing machine decreasing by 9.96% in 1H22 and 5.28% in 2H22 from a year earlier, respectively, and we expected its high-speed blenders will recover more significantly. Thanks to the booming demand for air fryers, the western small household appliances grew steadily.　　With the adjustments in the management and the recovery in offline traffic, the outlooks of the company’s new products such as clean appliances and cooking utensils are promising.　　By channels, the company’s online and offline channels contributed CNY 6.160 billion and CNY 4.017 billion, down 0.22% and 8.02% from a year earlier, respectively.　　By regions, Joyoung’s domestic sales and overseas sales contributed CNY 8.85 billion and CNY 1.326 billion, a decrease of 2.56% and 9.03% from a year earlier.　　Joyoung’s domestic sales boasted abundant resilience while its overseas sales were under pressures which are expected to bounce back in 2023.　　Joyoung sold goods to JS Global totally worth CNY 1.187 billion in 2022, flat with a year earlier. And it is expected to strike transaction at USD 209 million in 2023, up 20.81% from that in 2022 in real terms.　　Joyoung’s profitability improved in Q4.　　The gap between the gross margin and selling expense rate rose by 4.21 percentage points, likely due to less raw material costs and better efficiency.　　The company’s net margin attributable to shareholders in Q4 declined by 1.58pps, mainly due to 1) more expense rates in Q4, with administrative/ R&D/ financial expense rate up 0.71pps/ 0.76pps/ down 0.25pps; 2) changes in fair value of trusts and funds and losses on asset and credit impairments.　　Deducting non-recurring gains and losses, the company’s profitability in Q4 improved from a year earlier, and its net margin deducting non-recurring items climbed by 1.30pps from a year ago.　　Earnings forecast and investment recommendation　　As a leading player of China’s kitchen small household appliances, Joyoung will enjoy a rosy 2023, with its main business to be resumed and its new businesses gaining steam, and it will continue to see a better product mix.　　We revised up our earnings forecasts and estimated its EPS at CNY 0.99 in 2023, CNY 1.08 in 2024, and CNY 1.20 in 2025, implying a P/E ratio to 18.1x, 16.5x, and 14.9x, respectively, based on the closing price on March 31, 2023. Reiterate “Outperform”.　　Potential risks　　a continuous rise in raw material prices; sluggish overseas demand; intensified competition 【免责声明】本文仅代表第三方观点，不代表和讯网立场。投资者据此操作，风险请自担。

   【免责声明】本文仅代表第三方观点，不代表和讯网立场。投资者据此操作，风险请自担。