财务费用同比降低，研发费用维持高位。报告期内，公司管理费用1.62 亿元，同比增长29.32%；销售费用0.69 亿元，同比增长86.23%，主要因销售增长而增加；财务费用为0.81 亿元，同比下降49.03%，主要因为汇兑损益影响。此外，本期公司研发费用约7.78亿元，同比增长6.86%，维持较高水平。Key points of investment:
The company released its 2023 annual report, and the performance was in line with market expectations. During the reporting period, the company achieved total revenue of 39.874 billion yuan, a year-on-year increase of 0.81%, and net profit to mother of 453 million yuan, a year-on-year decrease of 6.94%. The company's net profit for the fourth quarter of '23 was 138 million yuan, up 0.73% year on year and 35% from the third quarter. Meanwhile, according to the company's announcement, the proposed 2023 profit distribution plan is to distribute a cash dividend of 5 yuan (tax included) for every 10 shares, with a total cash dividend of 182 million yuan, accounting for 40.25% of net profit due to mother in 2023.
The additional production capacity gradually realized the increase in sales, and the profit per ton is resilient. During the reporting period, Zhejiang Yongjin and Guangdong Yongjin added production capacity projects. Throughout the year, the company achieved 2.86 million tons of cold-rolled stainless steel production, up 15.72% year on year, achieving sales volume of 2.85 million tons, up 15.08% year on year, with a basic balance of production and sales; the price per ton was about 13,864 yuan/ton, down 12.56% year on year; ton cost was about 13,206 yuan/ton, down 12.73% year on year; gross profit per ton was about 658 yuan/ton, down 8.98% year on year, showing some resilience in the face of poor downstream demand.
Financial expenses decreased year-on-year, and R&D expenses remained high. During the reporting period, the company's operating expenses were 162 million yuan, up 29.32% year on year; sales expenses were 69 million yuan, up 86.23% year on year, mainly due to sales growth; financial expenses were 81 million yuan, down 49.03% year on year, mainly due to the impact of exchange profit and loss. In addition, the company's R&D expenses in the current phase were about 778 million yuan, an increase of 6.86% over the previous year, maintaining a high level.
The main business is expanding steadily, and new material projects continue to advance. According to the company's announcement, in terms of the main stainless steel processing business, the first phase of the 1.2 million tons of high-quality wide stainless steel strip processing project in Yongjin, Jingjiang began in October 23. It is expected to reach the trial production stage in October '24, and production and sales of stainless steel products are expected to continue to grow. At the same time, in the field of new materials, the first phase of the pre-nickel plating project and the first phase of the titanium alloy new material project are also expected to reach the trial production stage in June '24, which is expected to become a new growth point for the company.
Investment analysis: Considering that downstream demand is still weak, we lowered the company's gross profit forecast for 24-25 tons of steel from 750 and 763 yuan/ton to 675 and 712 yuan/ton, reduced the 24-25 net profit forecast from 8.08 and 1,024 million yuan to 5.6 and 714 million yuan, and added a net profit forecast of 852 million yuan for 26, corresponding 11 times, 9 times, and 7 times PE for 24-26, respectively. The company is mainly engaged in the stainless steel cold rolling business in the special steel industry. Compared with the company's reference stainless steel pipe standard Jiuli Special Steel and CITIC Special Steel, the average PE for 24-25 years is 14 and 12 times, respectively. Therefore, the company's valuation level is low, and considering that production and sales are growing at a high rate as the company continues to implement new production capacity, it maintains a “buy” rating.
Risk warning: 1) Downstream demand falls short of expectations, 2) The company's sales volume and processing costs have declined, 3) According to the “Notice of Response to the Shanghai Stock Exchange's Supervisory Work Letter on the Extension of the Company's Fundraising Project” issued by the company on April 4, 2024, due to equipment installation, personnel training progress, and customers in the northwest market falling short of expectations, the company postponed the Gansu Yongjin stainless steel project. After careful evaluation, we did not consider the future growth of the project in model calculation. Subsequent production growth only took into account the climbing of production capacity in 23 years and the increase in the Jingjiang project. risk.
