Description of the event
The company released its 2023 annual report. In 2023, the company achieved revenue of 1.23 billion yuan, a year-on-year increase of 34.2%, and achieved net profit of 142 million yuan, an increase of 78.1% over the previous year; after deducting non-net profit of 106 million yuan, an increase of 255.1%. Among them, 2023Q4 achieved revenue of 491 million yuan, an increase of 23.4% year on year; net profit to mother was 103 million yuan, up 1.48% year on year; net profit after deducting non-return to mother was 91 million yuan, up 13.8% year on year.
Incident comments
Revenue and profit continued to grow, and performance was in line with expectations. The company focuses on industrial metal additive manufacturing (3D printing), providing customers with a complete set of metal additive manufacturing solutions, including metal 3D printing equipment, product manufacturing, raw materials and technical services, etc., and has built a relatively complete metal 3D printing industry ecosystem. The overall strength is in a leading position in the field of metal additive manufacturing at home and abroad. The company continues to increase market development efforts and R&D investment, continue to cultivate aerospace and other application fields, continue to develop new equipment models, and continue to explore new markets, driving revenue growth in 2023. At the same time, share payment fees were reduced in 2023, making net profit growth higher than revenue, and overall performance was in line with expectations. It is expected that in 2024, with the further release of the company's production capacity, increased development in more fields, and a further decline in share payment fees, the company's revenue and profit will continue to grow.
The share of non-aerospace businesses has increased, and gross margin has decreased due to structural changes. By sector, 3D printing services achieved revenue of 630 million yuan, up 34.5% year on year, and gross profit margin decreased by 9.1 pct; 3D printing equipment business revenue was 530 million yuan, up 26.5% year on year, and gross profit margin decreased by 0.6 pct; 3D printing materials achieved revenue of 64 million yuan, up 99.0% year on year, and gross profit ratio of 34.3% decreased by 4.7 pct year on year. By industry, aerospace revenue was 690 million yuan, up 8.3% year on year; gross profit margin of 53.7% decreased 3.5 pct year on year; industrial revenue was 450 million yuan, up 91.4% year on year, gross profit margin of 43.9% year on year decreased by about 6.0 pct year on year; revenue from research institutes was 0.7 billion yuan, up 118.9% year on year, gross profit margin decreased 6.7 pct year on year; revenue from the medical sector was 12 million yuan, up 62.3% year on year. Overall, the company achieved growth in the fields of 3D printing services, equipment, and materials in 2023. By sector, the revenue growth rate of the industry, research institutes, and the pharmaceutical industry was relatively fast, but since the gross margin of these sectors was lower than that of aerospace, the company's overall gross margin declined in 2023.
The logic of continuous expansion in the downstream sector remains unchanged, and we are optimistic about the company's medium- to long-term development trends. In the non-civilian sector, the company's founding team has a strong industrial background. Combined with the company's leading technology and the layout of the entire industry chain, it is expected to continue to achieve rapid growth. In the civilian sector, as technology matures, cost reduction and efficiency continue to advance, and the penetration rate continues to increase, 3D printing is expected to gradually expand in more application fields. In 2023, the company completed fixed growth and continued to expand production capacity. The company's long-term design output value far exceeds current production capacity, providing support for the company's medium- to long-term development.
The company is expected to achieve net profit of 3.36, 5.4, and 742 million yuan in 2024-2026, corresponding to PE of 47, 31, and 21 times, respectively, maintaining a “buy” rating.
Risk warning
1. The expansion of downstream application areas falls short of expectations;
2. The company's production capacity expansion fell short of expectations.