Zhejiang Sanfer Electric (605336.SH) issues a profit warning, expecting a net profit of 53 to 79 million yuan in 2024, a year-on-year decrease of 58.35% to 72.06%.

Zhejiang Sanfer Electric (605336.SH) announced that the company is expected to achieve a net profit attributable to owners of the parent company of 53 to 79 million yuan in 2024, a year-on-year decrease of 58.35% to 72.06%. Affected by factors such as the slowdown in the overall market demand for integrated stoves and intensified competition in the same industry, the company's sales volume did not meet expectations, with fewer new orders and a certain degree of decline compared to the same period last year. Due to factors such as consumer downgrading and an overall cautious consumption trend, the company's product structure has been adjusted with market changes, with an increase in the proportion of cost-effective product categories such as disinfection cabinets, leading to a certain decrease in product average price. The company actively expands its kitchen appliance products such as integrated dishwashers, promotes continued investment in whole-house customization, and has made some adjustments and controls to related fixed operating costs. However, due to the weakening of economies of scale, although expenses have decreased, they have not been able to compensate for the reduction in revenue. Therefore, even though expenses have decreased, the expense ratio has increased, ultimately leading to a certain degree of decline in the company's net profit compared to the same period last year.