Incidents:
The company released its 2023 annual report: in 2023, the company achieved revenue of 7.183 billion yuan, an increase of 38.82% over the previous year; the return was 55 million yuan, an increase of 4.12% over the previous year.
Report highlights:
The company's equipment business grew steadily in 2023
In 2023, the company's material handling equipment/marine engineering and supporting equipment business/ship supporting equipment business revenue was 41.12/14.39/715 billion yuan respectively, up 70.12%/21.11%/56.93% year-on-year respectively.
The company actively controls expenses, and profitability increased year-on-year
The company actively controls expenses. In 2023, the company's sales expenses rate/ management expenses ratio were 1.55%/4.90%, respectively, down 0.24/0.49pct from the previous year. Affected by exchange gains and losses, the company's financial expense ratio in 2023 was 1.12%, an increase of 0.62 pct over the previous year. In 2023, the company's gross margin/net margin was 20.43%/2.80% respectively, up 0.57/0.90pct year-on-year.
Orders were delivered smoothly, and the offshore business continued to break through
1) In terms of ocean wind, in 2023, the subsidiary Runbang Marine delivered nearly 130,000 tons of foundation pile and conduit frame products, and realized the export of seabreeze foundation piles to Japanese customers. In addition, the company delivered a “3,000-ton self-propelled full-rotation crane”, which will be mainly used for offshore wind power construction work. 2) LNG sector: In 2023, Runbang Marine successfully delivered 2 sets of 1800 cubic LNG fuel tank projects.
The acquisition of the bulk material handling business expands the scale of the high-end equipment business and increases international market share. The company acquired the global bulk handling business of the former Thyssenkrupp (Thyssenkrupp) and Sandvik (Sandvik) under the FLSmidth Group through its holding subsidiary Koch in Germany, including all ongoing global after-sales service orders for this business. By the end of 2023, work related to the acquisition had been completed. The acquisition is expected to enhance the company's competitiveness in the global field and enhance the company's performance.
Expand high-end equipment production capacity to ensure subsequent performance growth
The subsidiary Runbang Heavy Machinery plans to build the “Tongzhou Bay Equipment Manufacturing Base Project”, with a total investment of 2.2 billion yuan.
The company plans to expand the production capacity of the high-end equipment business (after the project is fully completed, it can form a production capacity scale of 15-20 thousand tons/year for offshore, port machinery and bulk material handling and transportation equipment) to further increase the market share of the company's high-end equipment business.
Investment advice and profit forecasting
We expect the company's net profit to be 3.54/4.38/571 million yuan in 2024-2026, an increase of 540%/24%/30% year-on-year; the current stock price corresponds to PE 11.6/9.4/7.2 times, maintaining the “increase” rating.
Risk warning
Raw material price fluctuation risk, increased risk of market competition, risk of order delivery falling short of expectations, international trade policy risk, exchange rate fluctuation risk.