occurrences
The company released its 2023 annual report. According to the announcement, the company achieved revenue of 5,040 billion yuan in 23, an increase of 18.93% over the previous year; realized net profit of 641 million yuan, an increase of 47.98% over the previous year; and realized deduction of 592 million yuan in non-net profit. The gross profit margin was 35.35%, up 2.35pct year on year; the net profit margin was 14.68%, up 2.29pct year on year.
In the 23Q4 quarter, the company achieved revenue of 1,364 billion yuan, a year-on-year increase of 29.09% and a month-on-month increase of 1.49%; realized net profit of 163 million yuan, an increase of 541.12% year-on-year and a year-on-month decrease of 59 million yuan; realized net profit withheld from mother of 145 million yuan, an increase of 1460.80% year-on-year, and a decrease of 69 million yuan month-on-month. The gross margin was about 36.96%, up 6.61 pct year on year and 0.69 pct month on month.
Net interest rate was about 14.06%, up 12.28 pcts year on year and 4.39 pct month on month.
Revenue reached a record high in January '23, and continued to grow in January '24. Although the global economy recovered slowly in '23, the company still achieved good results with overall strength and excellent product strength. By actively expanding emerging markets such as new energy vehicles, photovoltaic energy storage, data centers and the Internet of Things, the overall revenue reached a record high by actively expanding emerging markets such as new energy vehicles, photovoltaic energy storage, data centers and the Internet of Things. Judging from the business structure, the company achieved year-on-year growth in all business segments in 23, with signal processing and automotive electronics/energy storage growing rapidly. In 2023, the company's signal processing business revenue increased 25.62% year on year, and automotive electronics/energy storage increased 24.43% year over year. Furthermore, in January '24, the company's sales also set new sales highs in each month of the company's history, and achieved a good start. Looking ahead to 2024, the electronics industry is generally lackluster in the first half of the year and will recover in the second half of the year. With the recovery of traditional industries and the growth of emerging industries, the company's performance is expected to improve further in 24 years.
The production capacity utilization rate continued to increase. The company's gross margin increased quarterly in '23. From a profitability perspective, the company's capacity utilization rate continued to increase in '23, and labor efficiency also increased. Therefore, the company's gross margin increased quarterly from 23Q1 to 23Q4, from 32.18% to 36.96% in a single quarter. In terms of net interest rate, the month-on-month decline in the company's 23Q4 net interest rate was mainly due to seasonal effects on the cost side, but cost control improved markedly year over year. Furthermore, the current inventory turnover days have improved for 8 consecutive quarters, falling from 147 days in 22Q1 to 99 days in 23Q4, which is at the bottom.
Continuing to broaden its product line, bringing ample growth momentum to the company's related business over 24 years. As a supplier of key basic components, the company has gained a comparative advantage in industrial competition after a long period of accumulation and accumulation. Furthermore, by focusing on the “Five Five-Year Strategic Plan” and development strategy requirements, the company is gradually transforming from an industry follower to an industry leader. In the field of automotive electronics, the company has comprehensively promoted the development and supply layout of various categories of automotive electronics within the group company. New automotive electronics products have been continuously introduced to solve customer pain points and meet market needs, and new projects for high-end customers continue to be promoted smoothly. In the field of photovoltaic energy storage, the company has been recognized by domestic and foreign industry benchmark enterprises. In the data center field, the company's products can continue to meet the evolving needs of high-end customers, and have been continuously recognized by high-end customers. We believe that the company's client expansion has gradually entered the harvest period. Looking forward to 24 years. With the gradual recovery of the downstream market and the release of the company's product development results, the company's related business is expected to grow further.
Investment advice
We expect the company's net profit to be 887/11.08/1,346 million yuan from 2024 to 2026, and the corresponding PE is 24.86/20.13/16.57x, maintaining the “increase in holdings” rating.
Risk warning
Competition in the industry intensified, demand recovery fell short of expectations, etc.