2023 revenue increased 17.96% year over year, and net profit to mother increased 33.69% year over year. The company achieved revenue of 3,852 billion yuan in 2023, up 17.96% year on year; net profit to mother of 881 million yuan, +33.69% year over year; net profit after deducting non-return to mother of 832 million yuan, +37.48% year over year. Looking at a single quarter, 2023Q4 achieved revenue of 946 million yuan, up 1.70% year on year; net profit to mother of 182 million yuan, up 6.46% year on year; net profit after deducting non-return to mother was 184 million yuan, +8.24% year over year. Profitability, 2023 net interest rate of 22.36%, year-on-year change of +2.63pct, 23Q4 net profit margin 19.19%, year-on-year change +0.86pct. The increase in the company's profitability is mainly due to the continuous increase in the share of high-margin vacuum pumps.
The increase in the share of vacuum pump business has led to a continuous increase in the company's profitability. The gross margin of the company's vacuum pumps is over 40%, which is significantly higher than the compressor business. In recent years, the share of vacuum pump business has continued to increase, driving the company's profitability to continue to improve. The rapid growth of the company's vacuum pump products is mainly driven by photovoltaic vacuum pumps in the short term. In addition, semiconductor vacuum pumps have continued to make breakthroughs, which are expected to further open up the company's growth space. In the photovoltaic field, the company's photovoltaic vacuum pumps have benefited from the boom in the industry plus import substitution. The company has now grown at an accelerated pace in the past 4 years and has become the leader in photovoltaic vacuum pumps. The more difficult battery segment benefits from TopCon's expansion and increase in vacuum pump market share and is expected to continue to grow well overall; in terms of semiconductor vacuum pumps, overseas brands currently occupy about 90% of the market share. With the advancement of localization in the semiconductor field, the company's market share continues to rise. It has now been recognized by some domestic chip manufacturers. batch Supply, there is plenty of room for domestic alternatives in the future. In the maintenance field, the company's vacuum pump maintenance business currently accounts for less than 6%, far lower than Atlas's 25%. In the future, as the company's ownership rate in the battery and semiconductor vacuum pump markets increases, it will further open up room for the company's growth.
The development of refrigeration has driven the growth of refrigeration compressors, and the release of oil-free products has improved the profitability of air compressors. The company is in a leading position in the field of screw compressors in China, and the overall business is developing steadily. The CAGR in 2010-2022 was about 10%, and the gross margin was stable at around 30%. In the refrigeration compressor business, refrigeration compressors benefit from e-commerce development and vaccine transportation demand, and terminal consumer demand is gradually opening up, showing a rapid growth trend. The company's refrigeration and refrigeration compressors maintained rapid growth in the first three quarters of 2023, and are the fastest growing segment of refrigeration compressors. In terms of air compressors, the company continues to expand into the high-end compressor market, and has successively launched maglev centrifugal compressors and oil-free air compressors. Currently, the company's oil-free air compressor products are gradually being released, driving the growth of the company's air compression products and the continuous improvement of the profitability of the air compressor business.
Risk warning: economic recovery falls short of expectations; vacuum pump business expansion falls short of expectations; raw material prices fluctuate.
Investment advice: The company is a leading domestic screw compressor and vacuum pump company with full business orders. Net profit to the mother in 2023 was adjusted to 881 million yuan (previous value: 852 million yuan) according to the performance report. The net profit to the mother is expected to be 1,08/1,193 million yuan in 2024-2025, unadjusted, corresponding 13/11/9 times PE in 2023-2025, maintaining a “buy” rating.