Throughout 2023, the company achieved revenue of 3.197 billion yuan, +5.06% year on year; realized net profit of 461 million yuan, +28.73% year on year; realized net profit of 453 million yuan, +26.47% year on year; annual gross profit margin of 54.19%, +3.81 pct year on year; net profit margin 14.42%, year on year +2.65pct; net profit margin without return to mother 14.16%, year on year +2.4pct; year-on-year expense ratio was 36.3%, year-on-year +1.96pct, sales/management/R&D/ The financial expense ratios were 26.87%, 5.27%, 4.43%, and -0.27%, respectively, with year-on-year changes of -0.82, 1.75, 0.82, and 0.21pct, respectively.

2023Q4 In a single quarter, the company achieved revenue of 1.15 billion yuan, +76.6% YoY, +57.48%; realized net profit of 160 million yuan, +110.23% YoY, +50.22% month-on-month; realized net profit of 162 million yuan, +170.68% YoY, +49.68% month-on-month; gross profit margin of 48.43%, YoY -17.77pct, YoY -9.04pct; Net profit margin 13.89%, YoY +2.22pct, -0.67pct month-on-month; Not a return to the mother Net profit margin was 14.06%, +4.89pct year over year, and -0.73pct month-on-month.

By business, explosion-proof products achieved revenue of 2,602 billion yuan, professional lighting and other products of 321 million yuan, and project revenue of 274 million yuan. According to the division of domestic and foreign trade: domestic trade achieved sales revenue of 2.5 billion yuan, of which security intelligent products achieved revenue of 210 million yuan; foreign trade department achieved revenue of 700 million yuan. At the same time, overseas revenue increased both supply and demand in the international oil and gas industry, and the company quickly laid out and put into operation three major overseas operation centers in Europe, Central Asia, and Southeast Asia; the company's joint venture in Saudi Arabia entered the registration review stage.

Judging from the planning layout, on the one hand, the company expands product application fields and digs deep into market demand, such as expanding into fields such as food, medicine, and liquor, military nuclear power, and chemical machinery support; on the other hand, it accelerates the strategic transformation process from a single equipment manufacturer to an intelligent “production safety service provider”, such as the upgrading of intelligent safety systems products, R&D, operation and maintenance personnel reserves; and actively lays out overseas markets, such as the commissioning and operation of overseas operation centers in Europe, Central Asia and Southeast Asia, and the establishment of Saudi joint ventures.

Other key indicators: significant improvement in gross margin: domestic gross margin was 54.04%, +3.97pct; overseas gross margin was 60.66%, +7.17pct year on year; sales of explosion-proof products increased and inventory declined, achieving sales of 8.802 million units/set in 23, +20.68% year on year, inventory volume -12.05%; gross margin of explosion-proof products was 57.64%, year-on-year +0.63pct.

At the same time, in order to effectively stimulate the PV and new energy business, the company has set up project companies in Heilongjiang, Shandong and other places. This round of foreign investment will effectively stimulate the rapid development of new energy businesses and safe industrial smart chemical parks, and is expected to effectively form a new business growth point in 2024.

Profit forecast: Based on the company's recent development, we updated the company's performance judgment. The company's net profit for 24-26 years is estimated to be 5.94 (previous value: 626 million yuan) /6.66 (previous value: 815 million yuan) /798 million yuan, respectively, maintaining the “buy” rating!

Risk warning: the risk of declining capital expenditure in the domestic petroleum industry, the risk of increased competition in the professional lighting industry, the risk of a decline in the company's gross margin after years of development in the photovoltaic industry, etc.