Net profit to the mother increased steadily year on year in '23. More new products can be expected to achieve revenue of 3,077 billion yuan, +6.10% year over year; net profit to mother of 317 million yuan, +22.44% year over year (restated); net profit after deducting non-return to mother was 290 million yuan, -14.33% year over year (restated). Considering the weak growth in demand in the traditional home appliance market, we lowered the company's shipping volume and unit price forecast. The company's corresponding EPS for 24-26 is 1.19/1.38/1.56 yuan, respectively (the value was 1.25/1.51 yuan 24-25 years ago).
Referring to the consistent expectations of the comparable company Wind, the average PE for 24 years is 20.5 times. Considering that the company is a leading global micro motor company, opening up room for growth in many fields, the company was given 24 times PE in 24 years, corresponding to a target price of 28.48 yuan (previous value 32.52 yuan), maintaining a “gain” rating.
Gross margin increased steadily in 23 years, and operating cash flow performance was outstanding in 23 years. The company continuously optimized the sales structure of mature products and products, compounded by the impact of the appreciation of the US dollar. The company's profitability increased steadily. The gross margin/net margin reached 29.81%/11.74%, respectively, +1.31pct/1.12pct. In terms of expense ratios, the 23-year sales/management/R&D/finance expense rates were 2.79%/8.83%/4.77%/-1.94%, respectively, +0.10pct/+0.25pct/+0.19pct/+2.27pct. The increase in financial expenses was mainly due to a decrease in exchange earnings due to exchange rate changes. In addition, the company's cash flow performance was good. The net cash flow from operating activities in '23 was 569 million yuan, +72.91% over the same period last year.
Mass production of new energy vehicle products boosted the rapid growth of auto zero business revenue to achieve revenue of 3,077 billion yuan in 23 years, +6.10% over the same period last year. By business, air conditioning motors and components, washing machine pumps and components, industrial control motors and components, medical and sports health motors and components, refrigerator motors and components, refrigerator motors and components, and auto parts each achieved revenue of 7.63/4.78/3.38/2.34/2.68/469 million yuan, or +0.08%/+2.60%/-12.08%/+7.01%/+43.14%. Among them, the auto parts sector achieved relatively rapid year-on-year growth, mainly due to the company's accelerated mass production of products such as lidar motors for new energy vehicles, electric air conditioning compressor motor components, and aluminum die-casting parts, and achieved rapid growth in the field of new energy vehicles.
Multi-field layout, continuous promotion of innovative products, optimization of the company's sales structure. In the field of traditional household appliances and motors, the company overcomes market competitive pressure and maintains market share. In terms of new product layout, the company continues to increase investment in research and development of new products such as medical voice coil motors, industrial control motors, hollow cup motors, planetary balls, and roller screws. Among them, in medical devices, the company's ventilator voice coil motors have been approved by customers and are in the mass production stage to achieve domestic replacement of key components; in the field of industrial control, reverse miniature sliding screws, planetary ball and roller screws, brushless hollow cup motors and their precision gearbox components, micro servo motors, digital galvanometer motors, etc. are currently in the sample testing and customer certification stage.
Risk warning: risk of raw material price fluctuations; R&D innovation falling short of expectations; risk of exchange rate fluctuations.