The company's revenue continued to grow. Net profit to mother increased 53.73% year on year, profitability improved 2023 revenue of 7.496 million/yoy +22.86%, and net profit to mother of 655 million/yoy +53.73%. 2023Q4 revenue was 1.92 billion yuan/yoy +6.39% /qoq -0.23%; net profit to mother of 90,000,000/yoy -6.99% /qoq -53.64%. The company has become a leading domestic cold chain logistics equipment and central air conditioning company. Considering the slowdown in the company's downstream growth rate, we expect the company's net profit to be 7.85/9.57/1,173 billion yuan in 24-26 years (previous value: 8.90/10.30 billion yuan). Referring to the comparable company Wind, which has always expected an average PE of 13.7x in 24 years, giving the company 13.7x PE in 24 years, corresponding to a target price of 14.11 yuan (previous value: 18.2 yuan), maintaining the purchase rating.
The proportion of high-margin products increased, and the company's profitability continued to improve
In 2023, the company's gross margin was 25.56% /yoy+2.87pct, and the net margin was 8.87% /yoy+1.95pct.
2023Q4 gross margin was 23.91% /yoy+1.26pct/qoq-5.24pct, and the net margin was 4.81% /yoy-0.05pct/qoq-5.64pct. The company's profitability continues to improve. The main reasons are: 1) the share of revenue from industrial refrigeration compressor equipment and central air conditioning with high gross margin has a positive impact on gross margin; 2) the company's cost control ability is strong, and the cost rate remains low. In 2023, the management expense ratio is 4.65% /yoy+0.09pct, R&D cost rate 3.79% /yoy+0.09pct, sales expense ratio 8.76% /yoy-0.05pct; 3) The price of raw materials is relatively stable.
A leading enterprise in the field of refrigeration and compression equipment, the industrial refrigeration field continues to break through the company's rich product matrix. Its main business covers industrial clusters such as cryogenic refrigeration equipment, central air conditioning equipment, energy-saving heating equipment, energy and chemical compression/liquefaction equipment, precision castings, intelligent storage equipment, and hydrogen energy equipment. The company's revenue and orders continued to grow in 2023. Various sectors went hand in hand, and orders from the main refrigeration industry grew steadily, and breakthroughs were achieved in overseas orders from subsidiaries, industrial gas compression/liquefaction equipment, and fine chemical refrigeration processes. Demand in the chemical sector has grown rapidly since 2023, and the industrial refrigeration market is broad. The company has accelerated the deployment of industrial refrigeration equipment, and there is plenty of room for future growth. In terms of central air conditioning, the overall engineering and retail central air conditioning markets are sluggish, and market segments such as digital centers and medical care have become new growth points.
Advance layout of new technology: hydrogen energy storage and transportation, CCUS, and compressed air technology all have layout. The company has broken through the key technology of large-scale helium compressors for hydrogen gas liquefaction in terms of hydrogen production, purification, liquefaction, and storage; Shandong Binglun Haizhuo Hydrogen Energy Technology Research Institute Co., Ltd., a wholly-owned subsidiary of the company, is committed to industrial technological breakthroughs and key equipment development. By the end of '22, the design and trial production of 22MPa and 90MPa diaphragm compressors has been completed. On the CCUS side, the company's process gas screw compressors have been used as core equipment in many national CCUS demonstration projects. At the same time, the company also has compressed air technology reserves and is looking forward to progress in application.
Risk warning: investment in cold storage falls short of expectations; CCUS and hydrogen energy industry policies fall short of expectations; repayment of engineering business falls short of expectations.