Incident: The company released its 2023 annual report, achieving revenue of 1,881 billion yuan in 23, an increase of 10.30% over the previous year; realized net profit of 51 million yuan, an increase of 10.72% over the previous year; and realized net profit of 43 million yuan without return to mother, an increase of 43.99% over the previous year. Looking at a single quarter, 23Q4 achieved revenue of 552 million yuan, up 13.52% year on year and 15.42% month on month; realized net profit to mother of 0.2 billion yuan, up 162.43% year on year and 120.02% month on month.
Performance has grown steadily, revenue from the aluminum alloy lightweight business has increased, and overseas market expansion has achieved remarkable results. In '23, the company achieved revenue of 1,881 billion yuan, an increase of 10.30% over the previous year, and realized net profit of 51 million yuan, an increase of 10.72% over the previous year. By business, the chassis parts business benefited from the rapid increase in new energy projects and a steady rise in performance; the production capacity of new projects in the aluminum alloy lightweight business climbed rapidly, and revenue increased +182.12% year-on-year to 127 million yuan; and air conditioning compressors grew steadily under the recovery trend of the commercial vehicle market. In addition, the company further developed overseas markets, and overseas revenue increased 30.72% year-on-year to 127 million yuan in '23.
The overall rate was stable year over year. Sales/management/R&D/finance cost rates for 23 years were 2.72%/5.55%/4.67%/1.82%, respectively, with year-on-year changes of -0.13pct/0.83 pct/0.27pct/-0.31pct. Management expenses were +29.68% year-on-year. The increase was mainly due to fixed costs of building production capacity in the aluminum alloy lightweight business and daily expenses related to various businesses; R&D expenses increased +17.04% year over year, mainly due to the company continuing to increase investment in new projects such as new energy thermal management and controller research and development, and wire-controlled brake components.
We are steadily promoting market development and new project development in the auto parts business, and the customer base continues to expand.
The chassis parts sector continues to develop products related to active shock absorbers, promotes mass production of single-tooth VGR racks and core components for wire-controlled brakes, and has been targeted by various projects such as Nexte/ FAW Koyo/BYD/Mandu/Fenia/Cummins. At the same time, overseas market orders are gradually being mass-produced and released. Customers include well-known international manufacturers such as ZF and Thyssenkrupp; the aluminum alloy lightweight sector, speeding up the deployment of new energy vehicles, and gaining new targets for more models from BYD; the air conditioning compressor sector, electric compressors have been targeted by BAIC Customers such as SAIC Chase and SAIC Chase were selected, and traditional compressors were awarded by BAIC Foton, etc. The customer targeted, and the integrated thermal management system was designated by Foton Daimler and Jirui Joint Heavy Industries projects.
Seize the opportunities in the humanoid robot industry chain and accelerate the layout of the screw field. According to the Ministry of Industry and Information Technology's “Guiding Opinions on the Innovation and Development of Humanoid Robots”, humanoid robots are expected to become disruptive products after computers, smartphones, and new energy vehicles. They have become a new highland of technological competition, a new racetrack for future industries, and a new engine for economic development. They have great potential for development and broad application prospects. Among them, the screw is a key component in the “body” of humanoid robots. In terms of technical technology, the company has been deeply involved in the main business and has high homology with screw preparation. On the other hand, its R&D team has formed a set of highly specialized and systematic processes and production plans in precision car processing, grinding, raw material conditioning, surface heat treatment, flaw detection, straightening, etc., which are highly technically feasible; in terms of strategic layout, the company attaches great importance to this industry opportunity. On the one hand, it is expected that downstream customers will submit samples on time and with good quality, and continuously explore optimization plans for the screw mass production process. On the other hand, robots are also working to promote large-scale screw production line construction. Use the screw field to occupy A head start.
Profit forecast: We expect the company to achieve net profit of 0.63/0.85/111 million yuan in 24-26, respectively, and the corresponding PE is 86/64/49 times, respectively. We believe that the company will follow the development trend of new energy vehicles, actively seek new volume, seize opportunities in the humanoid robot industry, and continue to advance R&D and mass production processes in the field of robot screws. Currently, it is leading the industry and is expected to fully benefit. First coverage with a “Recommended” rating.
Risk warning: the risk of macroeconomic sentiment fluctuations, the risk of increased industry competition, and the risk of rising raw material prices.