Full year of 2023:1) Achieved revenue of 1.05 billion yuan, up 38.17% year on year; realized net profit of 207 million yuan, up 33.33% year on year; realized net profit without return to mother of 176 million yuan, up 38% year on year; 2) gross profit margin of 46.13%, up 2.46 pct year on year; net profit margin of 18.73% year on year, down 0.68 pct year on year; 3) The cost ratio for the period was 27.89%, up 1.62 pct year on year; 3) The cost ratio for the period was 27.89%, up 1.62 pct year on year The sales/management/R&D/finance expense ratios were 13.6%, 8.65%, 8.57%, and -2.94%, respectively, with year-on-year changes of -0.32, +0.88, -0.42, and 1.48pct, respectively.

2023Q4 single quarter: 1) Achieved revenue of 405 million yuan, up 70.48% year on year and 56.85% month on month; realized net profit of 88 million yuan, up 281.28% year on year, up 140.06% month on month; realized net profit withheld from mother was 0.73 billion yuan, up 358.16% year on year, +119.09% month on month; 2) Q4 single quarter gross profit margin of 46.21%, up 0.96 pct year on year, up 0.8 pct month on month; net profit margin to mother 21.79%, up 12.05 pct year on year , up 7.55 pcts month-on-month; net profit margin after deducting non-return to mother was 18.03%, up 11.32 pcts year-on-year, and 5.12 pcts month-on-month.

By product: 1) High-altitude safety lifting equipment: sales revenue of high-altitude safety lifting equipment was 763 million yuan, up 40.34% year on year, accounting for 69.10% of total revenue, gross profit margin of 47.33%, down 0.31pct year on year; 2) High-altitude safety protective equipment: sales revenue of high-altitude safety protective equipment was 287 million yuan, up 48.47% year on year, accounting for 25.98% of total revenue, gross profit margin of 41.96%, up 8.33 pct year on year; 3) Aerial safety work service sales revenue It was 45 million yuan, down 19.64% year on year, accounting for 4.11% of total revenue, gross profit margin of 45.13%, up 10.81 pct year on year.

By region: 1) Mainland China: Domestic sales revenue was 562 million yuan, up 16.84% year on year, accounting for 50.9% of total revenue, gross profit margin of 32.73%, down 2.50 pct year on year; 2) Overseas: export sales revenue of 542 million yuan, up 73.55% year on year, accounting for 49.1% of total revenue, gross profit ratio of 60.03%, up 4.36 pct year on year.

1) Domestic+export demand resonance: The domestic wind power industry continues to rise, and the prospects for wind power development are broad. With continued policy support, technology maturity and further cost reduction, and global efforts to reduce carbon emissions, new wind power installations in China and around the world reached record highs in 2023. During the 14th Five-Year Plan period, China's wind power development goals focused on technological innovation, enhanced industrial capacity, increased installed capacity, and maintaining a global leading edge, which is expected to drive the company's product sales. In 2023, the company's share of sales in the international market increased rapidly, approaching 50% of the company's annual sales revenue. 2) Product structure upgrade: The product structure continues to be upgraded, and the product matrix is continuously improved: products such as heavy-duty elevators and rack and pinion elevators further improve the safety, stability and operating efficiency of lifting equipment; in addition, the company has accelerated the layout of industrial and construction lifting equipment, intelligent safety protective equipment, high-altitude emergency equipment, etc., and products such as industrial lifts, tower climbers, smart safety helmets, full-body safety belts, and speed differentiators have blossomed. The production volume, sales volume and inventory volume of high-altitude safety lifting equipment in 2023 all showed a year-on-year growth trend. Production volume increased 36.47% year over year, sales volume increased 9.67% year on year, and high-value products continued to be released.

Profit forecast: The company's actual profit for 2023 did not meet our previous profit forecast. We lowered our profit forecast. We estimated net profit of 2.54, 3.11, and 374 million yuan (24-25 years ago: 3.67, 446 million yuan), corresponding PE of 25.55, 20.87, and 17.38 times, maintaining a “buy” rating.

Risk warning: downstream wind power industry fluctuations and policy risks, industry competition risks, technical risks