occurrences
Recently, Huaqin Technology released its 2023 performance report. In 2023, the company expects to achieve revenue of 916 million yuan, an increase of 36.25% over the previous year, and is expected to achieve net profit of 334 million yuan, an increase of 0.29% over the previous year.
reviews
1. Revenue maintained rapid growth, and subsidiary share payments and losses during construction affected short-term profits. In 2023, the company expects to achieve revenue of 916 million yuan, an increase of 36.25% over the previous year. Customer model tasks continue to increase, and orders for small-batch trial production of new products are increasing one after another. Current production and sales have increased steadily over the same period last year, and revenue has maintained rapid growth. On the profit side, since Shanghai Ruihuasheng is expected to confirm payment of 186 million yuan of shares in 2023 and is still in the production capacity construction period, a loss of about 22 million yuan during the construction period will have a certain impact on the company's current profit. It is expected to achieve net profit of 334 million yuan to the mother, an increase of 0.29% over the previous year.
2. Continuous disclosure of large-scale contracts for batch production models totaling 642 million yuan. On January 17 and 30, 2024, the company continuously disclosed two large contracts for stealth materials, with contract values of 310 million yuan (tax included) and 332 million yuan (tax included), respectively. Both contracts were sold by the company's mass production projects, and product prices are relatively stable. If this sales contract is successfully implemented, it is expected to have a positive impact on current results.
3. Actively follow up the model development work, and the four brands have entered the small-batch production stage. On October 25, 2023, the company's four brands of stealth material products have reached an important application point and entered the small-batch production stage. The company will actively cooperate with the main engine manufacturer to complete the production and supply of military products.
4. The high increase in the holdings of directors and supervisors shows confidence in development. On January 30, the company announced that 10 senior directors and supervisors participated in the plan to increase their total holdings of the company's shares within 6 months from January 31, 2024, with an amount not less than 10 million yuan and no more than 20 million yuan, and promised not to reduce their holdings within six months after completion. The directors and supervisors showed their confidence in the company's future development.
5. Profit forecast and investment rating: We expect the company's net profit to be 4.24 billion yuan and 542 million yuan respectively in 2024-2025, up 27% and 28% year-on-year, corresponding to the current stock price PE of 40 and 31 times, respectively, to maintain a “buy” rating.
Risk warning:
There is pressure to reduce product prices; industry competition intensifies; business development falls short of expectations.