Introduction to this report:
The company's 2023 annual report meets market expectations, accelerates the market layout, promotes the construction of modern production capacity, continues to promote the upgrading of manufacturing capacity, continues to accelerate the international layout, and maintains a target price of 57.97 yuan.
Key points of investment:
Maintain the target price of 57.97 yuan and maintain “increase in holdings”. The company benefited from the boom in the aerospace industry in the 14th Five-Year Plan. The superimposed product business structure was continuously upgraded to promote strategic collaboration, and the performance is expected to maintain a high growth rate. We maintain the 2024-26 EPS of 2.00/2.49/2.89 yuan, maintain the target price of 57.97 yuan, and maintain the “gain” rating.
Performance is in line with expectations, and profitability continues to improve. 1) The company achieved revenue of 20.074 billion yuan (+26.75%), net profit of 3.339 billion yuan (+22.86%), net profit of 3.339 billion yuan (+23.73%), which is in line with expectations; 2) Profitability continued to increase in 2023, with gross margin of 37.95% (+1.41pct) and a weighted average return on net assets of 17.68% (+0.86pct); 3) The company's rate for the 2023 period was 19.49% (+2.41pct); 3) The third phase of restrictions was implemented Stock incentive plan with a management rate of 6.64% (+0.90pct); continue to strengthen innovation drive and increase R&D investment, R&D rate is 10.95% (+0.86pct).
Accelerate domestic and international market layout and promote the construction of modern production capacity. 1) The company focuses on connecting the main business, the defense market continues to expand, and the preferred position of interconnection solution suppliers continues to be consolidated; the high-end civilian manufacturing business focuses on strategic emerging industries, achieving new results in the quality and efficiency of communication and industrial business operations, and rapid growth in data centers, petroleum equipment, photovoltaic energy storage, etc.; the NEV business focuses on “world-class, domestic mainstream” strategies, and the coverage of mainstream car companies continues to increase, and the supporting role of the global platform is gradually showing; the international layout accelerates, the “big customer+region” market development model is implemented, and the supporting role of the global platform is gradually showing. 2) The company is making every effort to promote the construction of intelligent manufacturing, focusing on developing and applying intelligent equipment, cultivating new manufacturing models, improving on-site manufacturing capacity and production efficiency; promoting modern industrial capacity building. Projects such as the Basic Devices Industrial Park (Phase I) and the South China Industrial Base (Phase I) are progressing smoothly.
Catalysts: Rapid development of components and new products, and continuous breakthroughs in the new energy business.
Risk warning: Downstream demand falls short of expectations, and the consumer goods competition pattern worsens.