Event: Company Announces 2023 Results
In '23, the company achieved revenue of 10.511 billion yuan, +21.47% year on year, net profit of 1.01 billion yuan, +33.47% year on year, net profit without return to mother was 1,158 billion yuan, +37.12% year on year; of these, Q4 achieved revenue of 2,743 billion yuan, +2.22% year on month, -3.79% month on month, net profit of 406 million yuan year on year, +32.54% month on month; Q4 net profit without return to mother was 386 million yuan, +33.77% month on month. Exceed market expectations.
The company has strong profitability and continues to increase investment in R&D
The company's overall gross margin in '23 was 23.58%, -0.28 pct year on year, of which Q4 gross profit margin was 24.28%, -0.1 pct year on year, and +0.4 pct month-on-month. Q4 The increase in gross margin was mainly due to other earnings and depreciation recovery.
The net interest rate of the company's business in '23 was 11.42%, +1.01 pct year on year, of which Q4 net interest rate was 14.8%, +3.33 pct year on year, and +4.76 pct month on month. The company's sales, management, finance and R&D expenses rates for 23 years were 0.41%/2.8%/0.7%/6.06%, respectively, +0.01/+0.09/-0.22/+0.24pct.
Production capacity construction at home and abroad continues to be increased, and overseas bases are gradually putting into operation. Profitable companies continue to expand production capacity in the power battery field. On the basis of the original 13 domestic power battery precision structural parts production bases and 3 overseas production bases, the company decided to increase 3.48 billion yuan to build 4 power battery precision structural parts projects in August '23. In January '24, the company announced an investment of no more than 1.2 billion yuan to build a new energy battery precision structural parts production base in Shenzhen.
Overseas bases are gradually being put into operation and profitable. The company has increased capital and expanded production to overseas bases several times. The German and Swedish production bases are currently in the trial production stage. The Hungarian base achieved profit in 23Q3, and actively communicated with the North American market to accelerate overseas expansion.
Investment advice
As a leading structural parts company, the company is still expected to maintain a high level of profit. We expect net profit to be 13.6/16.83/19.92 billion yuan on 24/25/26, respectively, corresponding to PE 17/14/12 times, respectively, maintaining the company's “buy” rating.
Risk warning
The development of the downstream lithium battery market fell short of expectations, and the company's shipments fell short of expectations.