Introduction to this report:
The performance is in line with expectations; continue to promote fine management and actively explore overseas markets; continue to expand the industry layout and develop high-end and overseas efforts.
Key points of investment:
Investment advice: Refer to the company's performance report and take into account the slow recovery in domestic sales, and reduce the 23-25 EPS to 0.98/1.20/1.41 yuan (previous value 0.99/1.21/1.43 yuan). Referring to comparable company valuations, the company was given 21 times PE in 24 years, corresponding to a target price of 25.20 yuan (previous value 29.70 yuan), maintaining an increase in holdings rating.
The performance was in line with expectations. For the full year of 2023, we achieved revenue of 2,326 million yuan/ +26.05%, and net profit of 320 million yuan/ +21.89% to mother. Single Q4 achieved revenue of 587 million yuan/year over year +17.87% /month on month -6.97%, net profit to mother of 75 million yuan/year on year +3.8% /month on month -18.19%. The company's annual net profit margin was 13.76% /-0.45pct. Single Q4 net profit margin 12.78% /-1.79pct.
Continue to promote refined management and actively explore overseas markets. In 2023, while improving product performance, the company implemented fine management, strictly controlled material procurement, product design and various expenses, and continuously improved product competitiveness. At the same time, with the product's high cost performance and better after-sales service, the company actively explores overseas markets, and the acceptance of the company's products overseas continues to increase. At the same time, the company's share of overseas revenue increased, keeping the company's operating performance growing relatively well.
Continue to expand the layout of the industry and develop high-end and overseas efforts. The company's product line has covered 200+ models of products such as vertical, horizontal, gantry, CNC lathes, and CNC boring and milling machines. For 22 years, vertical and gantry machining centers used in the fields of wind power, ships, aerospace, etc. have been put into production one after another. In the future, the focus will be on high growth rates such as new energy vehicles, wind power, aerospace, and overseas. The share of revenue in several major fields is expected to increase, which is expected to far exceed the overall growth rate of the industry.
Risk warning: Macroeconomic recovery falls short of expectations, technological upgrades fall short of expectations, etc.