Incident: The company released its 2023 annual report and achieved revenue of 1.32 billion yuan in 2023, up 8.3% year on year; net profit to mother was 220 million yuan, down 1.6% year on year. Looking at the Q4 single quarter, we achieved revenue of 390 million yuan, up 27.3% year on year and 14.1% month on month; net profit to mother was 50 million yuan, down 7.3% year on year and 21.0% month on month.
Tools remained stable, functional films and intelligent equipment grew rapidly, total revenue grew steadily; industry competition intensified, raw material prices increased, and gross margins were under pressure. In 2023, the company's revenue from tool products increased 0.6% year on year, revenue from functional membrane materials increased 229.8% year on year, revenue from intelligent CNC equipment increased 278.5% year on year, and total revenue grew steadily. The company's comprehensive gross margin in 2023 was 36.4%, down 2.3 percentage points year-on-year, mainly due to increased competition in the PCB drill industry and rising raw material prices. Q4 The company's consolidated gross margin in a single quarter was 33.4%, down 6.5 percentage points year on year and 6.8 percentage points month on month.
The fee rate decreased during the year, and the net interest rate decreased. The company's expense ratio for the 2023 period was 18.9%, up 0.9 percentage points year on year. Among them, the financial expense ratio decreased 1.2 percentage points year on year and the sales expense ratio increased 2.0 percentage points year on year; the Q4 single quarter was 18.3%, down 1.3 percentage points year on year, up 0.4 percentage points from month to month. In 2023, the company's net interest rate was 16.6%, down 1.6 percentage points year on year, mainly due to the decline in the company's gross margin; the Q4 single quarter was 12.8%, down 4.7 percentage points year on year, down 5.7 percentage points from month to month.
The company is a global leader in PCB tools, and its business has blossomed a lot. The company is a global leader in PCB drills, with a global market share of 19% in 2020. It has obtained cost advantages and flexible production expansion advantages through self-made front-end production equipment. The integrated layout of the self-developed back-end drill intelligent storage system has continuously strengthened its core competitiveness. The company's multi-track layout actively explores the company's second growth curve. 1) Focus on expanding CNC tool production capacity: The company made its own CNC tool production equipment and used fund-raising funds to build 9.6 million CNC tool production capacity. 2) Focus on the development of intelligent CNC equipment: including CNC tool grinders, CNC tap grinders, CNC step grinding machines, fully automatic tool passivation machines, vacuum coating equipment, intelligent drill storage systems, etc. 3) Focus on developing functional film products: including anti-privacy film, vehicle light control film, vehicle explosion-proof film, etc. Mobile phone anti-privacy film has been shipped in batches, and there is plenty of room for automotive light control film development.
Profit forecasting and investment advice. The company's net profit for 2024-2026 is estimated to be 2.6 billion yuan, 3.3 billion yuan, and 40 billion yuan respectively. The compound net profit growth rate for the next three years is 22%, maintaining a “holding” rating.
Risk warning: the risk of falling 3C demand, price fluctuations and supply risks of raw materials, and the risk of increased market competition.