Incident: The company released its 2023 annual report, and achieved revenue of 20.074 billion yuan (+26.75%) for the full year of 2023, and achieved net profit of 3.339 billion yuan (+22.86%). In a single quarter, 2023Q4 achieved revenue of 4.715 billion yuan (+39.34%) and net profit of 446 million yuan (+2.92%) to mother.
The company achieved rapid revenue growth in 2023, and the performance was in line with expectations, and the net interest rate remained high even after equity incentive costs were affected. In 2023, we achieved revenue of 20.074 billion yuan (+26.75%) and net profit to mother of 3.339 billion yuan (+22.86%), which reached the highest level in history, and the performance was in line with expectations. New breakthroughs have been achieved in market expansion in the defense sector. Data centers, petroleum equipment, photovoltaic energy storage, etc. have achieved rapid growth, the coverage rate of mainstream car companies for NEV customers continues to increase, the international layout continues to accelerate, and revenue has grown rapidly. Net interest rate fell slightly to 17.61% (-0.7pct) in 2023, mainly due to increased equity incentive amortization and increased R&D investment, which raised the period expense ratio to 19.49% (+2.41pct). The company plans to achieve revenue of 22.1 billion yuan (+10.09%) and total profit of 4.11 billion yuan (+10.08%) in 24 years, anchoring world-class development and maintaining high-quality development.
The company is actively expanding production capacity to help future military and civilian business development, and fixed assets and projects under construction are growing rapidly. At the end of 2023, the company's fixed assets were 4.473 billion yuan, +38.74% compared to the beginning of the year, and 1,793 billion yuan for projects under construction, +56.92% compared to the beginning of the year. In 2023, the company's basic device industrial park (phase I) project was successfully completed, the South China industrial base (phase 1) began a new high-end manufacturing journey, the high-end interconnect technology industry community, civil aircraft and industrial interconnection industrial park were fully started, and the Shenyang Xinghua aero engine wiring harness and Taixing Aviation optoelectronic liquid cooling source series product integration system project were successfully capped. Actively expand production capacity to better meet the future needs of defense, civil aircraft and civilian products.
The defense economy is rising, space is opening up for emerging industries for civil aircraft, and the structure of civilian products has been optimized, and the company has maintained high quality and rapid growth. Military products: Information technology construction and the military industry is booming. The company is a leading military connector. The market share is high, and the growth rate of military orders is expected to pick up. Civil aircraft: Domestic aircraft have extensive space. The company is deeply involved in domestic civil aircraft projects, and is expected to benefit from the expansion and strengthening of domestic civil aircraft. Communications and industry: Focus on the communications industry to continuously promote customer and product restructuring, strengthen the cultivation of emerging businesses, and continuously improve specialized market development capabilities. New energy vehicles: In 23, the company achieved a number of project targets, and the coverage rate of mainstream car companies increased, providing a strong impetus for the high-quality, sustainable and healthy development of the company's NEV business.
The revenue growth rate and gross profit margin were adjusted according to the 23 annual report, and EPS for 24 and 25 was reduced to 1.84 and 2.19 yuan (previous value was 2.00 and 2.52 yuan), and the 26-year EPS was added to 2.63 yuan. Referring to the comparable company's PE in 24 years, the target price was 38.64 yuan, and the target price was 38.64 yuan, maintaining the purchase rating.
Risk Warning: Military orders and revenue confirmation progress falls short of expectations