Incident: The company released its 2023 annual report. In 2023, it achieved revenue of 480 million yuan, an increase of 42.5% year on year; achieved net profit of 120 million yuan to mother, an increase of 149.4% year on year. Looking at the Q4 single quarter, we achieved revenue of 130 million yuan, up 36.6% year on year and 27.9% month on month; realized net profit of 21.669 million yuan, down 14.1% year on year and 49.1% month on month.
Deeply involved in the field of high-end grinders, revenue grew rapidly, and gross margin increased year-on-year. The domestic and foreign situation gradually stabilized in 2023, leading enterprises in various segments of the domestic machine tool industry gradually emerged, the situation where high-end CNC machine tools depended on imports was improved, the company steadily promoted the delivery of related equipment, etc., and revenue grew rapidly in 2023.
In 2023, the company's comprehensive gross margin was 34.3%, up 1.1 percentage points year on year; the Q4 single quarter was 33.7%, up 10.5 percentage points year on year and 3.3 percentage points month on month.
The expense ratio remained stable throughout the year, and the net interest rate increased markedly year-on-year. The company's expense ratio for the 2023 period was 14.5%, up 0.1 percentage points year on year. The Q4 single quarter was 15.9%, up 21.0 percentage points year on year and 2.1 percentage points lower than month on month. The company's net interest rate in 2023 was 25.6%, up 9.3 percentage points year on year; Q4 single quarter was 17.0%, down 11.3 percentage points year on year and 25.8 percentage points month on month.
Based on roller grinders, sub-U grinders, thread grinders, and guide rail grinders will be expanded horizontally, and future growth can be expected.
The company has been deeply involved in the high-end precision grinding equipment industry for nearly 20 years, and has mastered the core technology of the entire “key functional components - complete machine technology - technical service” industry chain in the field of CNC roller grinding machines. The performance indicators of roller grinding products are comparable to world-class products. In particular, in the field of high-speed high-precision grinding, the company has determined a leading position in global technology, breaking the monopoly of foreign brands on high-end roller grinding equipment in China. At the same time, guided by market demand, the company actively promotes the development and market application of new products, sub-micron high-end composite grinding series products, precision thread grinders, and CNC linear guide grinders, enriching the downstream market coverage areas and creating new growth points for the company's future performance improvement.
Profit forecasting and investment advice. The company's net profit for 2024-2026 is estimated to be 1.5 billion yuan, 1.7 billion yuan, and 210 million yuan respectively. The compound net profit growth rate for the next three years will be 21%, giving it a “holding” rating for the first time.
Risk warning: risk of macroeconomic fluctuations, risk of new product development falling short of expectations, risk of raw material price fluctuations.