Full year of 2023:1) Achieved revenue of 7.183 billion yuan, +38.82% year over year; realized net profit of 55 million yuan, +4.12% year over year; realized net profit of 50 million yuan without return to mother, +127.62% year over year. 2) Annual gross profit margin 20.43%, +0.57pct year on year; net profit margin 0.77%, year-on-year -0.26pct; net profit margin without return to mother 0.7%, +4.19pct year on year. 3) The cost rate for the period was 10.42%, -1.35pct, and the sales/management/R&D/finance expense ratios were 1.55%, 4.9%, 2.86%, and 1.12%, respectively. The year-on-year changes were -0.24, -0.49, -1.24, and +0.62 pct, respectively.
2023Q4 in a single quarter: 1) Achieved revenue of 2,217 billion yuan, -1.7% YoY, +14.8%; realized net profit attributable to mother -162 million yuan, -40.29% YoY, -374.15% month-on-month; realized net profit without return to mother -161 million yuan, +53.13% YoY and -472.42% month-on-month. 2) Q4 gross profit margin for a single quarter was 26.45%, +8.07pct year on year, +10.33pct; net profit margin to mother -7.31%, -2.19pct yoy, -10.37pct month-on-month; net profit margin after deducting non-return to mother -7.25%, +7.95pct yoy, -9.48pct month-on-month.
Business split products: 1) Material handling equipment revenue of 4.11 billion yuan, +70.12%, gross profit margin of 18.96%, year-on-year +1.14pct; 2) Offshore equipment revenue of 1.44 billion yuan, +21.11% year-on-year, gross profit margin 19.22%, year-on-year +6.23pct. 3) Revenue from ships and ancillary equipment was 715 million yuan, +56.93% year-on-year.
By region: 1) Domestic sales revenue of 2,220 billion yuan, accounting for 30.90%, -29.52% year on year, gross profit margin 25.07%, +1.59pct year on year. 2) Export revenue of 4.963 billion yuan, accounting for 69.1%, +145.1% YoY, gross profit margin 18.35%, +4.13% YoY.
Merger and acquisition of high-quality overseas assets, moving bulk material handling equipment to a leading position: In 2023, the German subsidiary of Runbang signed an “Asset Purchase and Transfer Agreement”. The company plans to acquire the former Thyssenkrupp (Thyssenkrupp) and Sandvik (Sandvik) global bulk handling business under the FLSmidth Group through the holding subsidiary Koch in Germany, including all in-hand orders for this business's global after-sales service, further enhancing the company's global market competitiveness and global after-sales sales in the field of bulk material handling system equipment Service capabilities help to quickly establish the company's leading position in the field of global bulk material handling and handling system equipment.
Offshore equipment accelerates overseas expansion: In 2023, Runbang Marine successfully delivered offshore wind power foundation piles and ancillary component products to Japanese customers, successfully entering the Japanese offshore wind power market. Furthermore, Shanghai Tianyu's “3,000-ton self-propelled full-rotation crane” was successfully completed, tested, obtained a ship inspection certificate, and delivered to the customer. A total of nearly 130,000 tons of offshore wind power foundation pile and conduit frame products were delivered throughout the year. Runbang Industrial delivered various DPW projects to customers, such as 5 tire container cranes and gantry crane automation transformation.
Profit forecast: Considering that the vast majority of the company's goodwill impairment risks have already been implemented, we expect the company's net profit to be 4.28, 5.37, and 664 million yuan in 2024-2026 (3.34 billion yuan and 413 million yuan before 24-25), respectively, corresponding PE of 10.54, 8.40, and 6.80 times, raised to a “buy” rating.
Risk warning: risk of exchange rate fluctuations; risk of market competition; risk of deterioration of the macroeconomic environment, etc.