Incident: The company released its annual report for the year 23, achieving annual revenue of 671 million yuan, +6.34% year over year; net profit to mother of 108 million yuan, +16.72% year over year; net profit after deducting non-return to mother of 60 million yuan, +27.60% year over year.
High-end products were released, and the annual results were in line with expectations. On a quarterly basis, 23Q4 achieved revenue of 198 million yuan, -8.54% year-on-year and +22.27% month-on-month; net profit of 40 million yuan, -5.81% year-on-year and +81.19% month-on-month; net profit without return to mother of 30 million yuan, +0.07% year-on-year and +325.18% month-on-month.
Profitability continues to increase, and the cost rate is relatively stable during the period. 1. Gross profit margin: 23-year gross profit margin 56.45%, year-on-year +4.06pct, of which 23Q4 gross profit margin was 56.30%, year-on-year +2.93pct, and -1.96pct month-on-month.
The year-on-year increase in gross margin was mainly due to the optimization of the company's product structure: 1) high-end and high-resolution digital oscilloscope revenue accounted for 54.29% of the overall digital oscilloscope revenue, +12.64pct year on year; 2) Digital oscilloscope product revenue with the company's self-developed core technology platform accounted for 76.03% of the overall oscilloscope revenue. High-end and self-developed core technology platform products contributed significantly to the gross margin of digital oscilloscope products. The gross margin of digital oscilloscope products in '23 was 58.26%, +3.31pct compared to the previous year. 2. Period expenses: The cost rate for the 23-year period was 46.26%, +1.45pct year-on-year. Among them, the sales, management, R&D, and financial expense ratios were 15.75%, 9.50%, 21.30%, and -0.30%, respectively, -0.89, -0.74, +1.38, and +1.69 pct.
Acquire resistant digital electronics to achieve multi-dimensional collaboration. In December 2023, the company announced plans to purchase 100% of Endurance Electronics shares and raise supporting funds by issuing shares and paying cash. Resilient Electronics focuses on the development and application of intelligent array systems, and can provide professional electronic measurement equipment and system solutions in the fields of remote sensing detection, quantum information, radio astronomy, microwave communication, etc. By integrating the R&D advantages and overall solution capabilities of enduring technology, the acquisition can, on the one hand, further improve Puyuan's product layout in segments such as RF engineering systems and measurement and control systems, and enhance market competitiveness; on the other hand, it can further enhance Puyuan's system integration capabilities and accelerate the company's transformation from hardware to overall solutions.
Profit forecast: Considering the equipment renewal policy, the company's performance is expected to grow further. The company's net profit for 24-26 is estimated to be 1.71, 2.31, and 310 million yuan, respectively, maintaining the “increase in holdings” rating.
Risk warning: New product marketing and customer development fall short of expectations; equipment renewal policies fall short of expected risks.