Revenue and net profit have both increased dramatically. The new strategy sets the tone, and the prospects are promising. Both revenue and net profit increased dramatically in '23, and the gross margin of core products is relatively stable. The “1, 2, 3, 21” strategy has established a medium- to long-term development path, and the prospects are promising.
Thanks to the recovery and improvement of the company's market position, the company achieved revenue of 1,352 billion yuan in 23, an increase of 32.03% over the previous year, and achieved net profit of 138 million yuan, an increase of 92.63% over the same period last year. Focusing on the three main businesses, we are deeply involved in the military and special vehicle markets, and our performance has improved dramatically in 23 years.
The gross margin of core products has been rising steadily. The overall gross margin reached 32.58% in '23, which is 0.36 percentage points higher than the same period last year. The gross margin of aerial work vehicles remained stable at over 36% for three consecutive years; the gross margin of military and fire engines increased from 15.66% to 20.13%, with a significant increase in profitability; the gross margin of power vehicles fell slightly to 30.63% from 33.66% in '22; and the gross margin of emergency repair vehicles increased sharply from 42.19% to 48.59%.
Expense rates have been declining steadily, and profitability has increased dramatically. The company's 23 sales expenses rate fell from 9.67% to 8.85%, the management expense ratio increased slightly from 5.05% to 5.27%, the financial expenses ratio from 0.56% to 0.43%, and R&D expenses from 4.33% to 3.73%. The company achieved a net sales margin of 15.09% in '23, compared to 7.10% in the same period last year, and its profitability increased dramatically.
The three-year strategy sets the tone for development. The company held multiple rounds of strategic seminars to plan the company's development path. According to the “1 2 3 21” blueprint, which is the slogan of “stick to one center, implement two-wheel drive, expand and strengthen the three main businesses, quadruple performance, and rebuild one Helen Zhe”, the company comprehensively deepens its development strategy, strengthens technology research and development and innovation work, consolidates the basic market of the three main businesses, optimizes functional allocation, implements restrictive equity incentives to enhance employee cohesion and work motivation, and resolutely safeguard shareholders' interests by collecting performance compensation. At the same time, in the future, the company will comprehensively strengthen international market development, form domestic and international two-wheel drive, and continue to unleash the company's potential.
Investment advice. The company focuses on the three main businesses, maintains high R&D investment, and makes concerted efforts at home and abroad. The company's net profit is expected to reach 247/3.05/371 million yuan in 24-26 years, 0.24/0.29/0.36 yuan for EPS, 17.84/14.42/11.16 times, and maintain a “buy” rating.
Risk warning: the risk of changes in the macro environment, the risk of increased market competition, the risk of high accounts receivable, the risk of insufficient talent reserves