The company released the 2024 annual report and 2024 quarterly report: in 2023, it achieved revenue of 1.05 billion yuan, a year-on-year increase of 3.18%, and realized net profit of 242 million yuan, a year-on-year increase of 137.26%, and realized net profit after deduction of 221 million yuan, an increase of 39.25%; in 2024 Q1, it achieved revenue of 276 million yuan, a year-on-year increase of 1.29%.
Gross margin increased further in 2023, and expenses were well controlled. In 2023, the company's gross margin was 35.81%, up 6.43pct compared to 2022; in terms of expenses, in 2023, the company's sales expenses ratio, management expense ratio, and R&D expenses ratio were 1.86%\ 5.69%\ 4.49% respectively, which is relatively stable compared to 2022 as a whole, and the company's overall expenses are well controlled. The gross margin of 2024Q1 was 34.29%, a slight year-on-year decline. We believe that in the future, as the share of revenue in the automotive and wind power sectors increases, the company's profitability is expected to increase further.
The trend of “rolling with a slide belt” is gradually taking hold, and I am optimistic about the company's business expansion in new fields such as wind power, robotics, and nuclear power. Sliding bearings have gradually replaced traditional rolling bearings in some fields, and many large machines, such as water turbines, have also begun to use sliding bearings. In particular, in the field of wind power gearboxes, the gradual trend of “rolling with sliding” will reduce the cost of ultra-high power wind power gearboxes. The future market for ultra-high power semi-direct drive wind power gearboxes has broad prospects, and we are optimistic about the gradual breakthrough of the company's sliding bearing business. In addition, the company is actively participating in the business expansion of new products such as nuclear power, robots, and air bearings, and strengthening overseas sales allocation. The new business+overseas revenue is expected to gradually contribute to profits.
Profit forecast: We expect the company's net profit to be RMB 2.8, 350, and 420 million yuan respectively, up 16%, 23%, and 22% year-on-year. The market value as of April 24 corresponds to a 24-25 PE of 16 and 13 times.
Risk factors: macroeconomic cyclical fluctuations, industrial policy adjustments, risk of rising raw material prices, etc.