Revenue and net profit to mother increased year-on-year in '23
In 2023, the company achieved revenue of 5.703 billion yuan, +32.96% year-on-year, net profit of 407 million yuan, +58.52% year-on-year, and a net profit margin of 7.16%, +1.20pct year-on-year. Demand for structural components for new energy vehicles grew rapidly, driving the company to achieve a sharp rise in quantitative profit in 23 years. Considering the company's fixed increase and smooth issuance of supplementary working capital, we assume that the company's net profit for 24-26 will be 6.16/7.75/924 million yuan respectively (previously estimated to be 6.12/7.77 yuan for 24-25 years). Referring to the consistent expectations of the company Wind, the average PE for 24 years is 14 times higher, and considering the high growth rate of the company's new energy structural components business such as battery boxes, giving the company a reasonable PE 16 times for 24 years, corresponding to a target price of 48.23 yuan (previous value 44.67 yuan). Maintain a “buy” rating.
The scale effect is reflected in the year-on-year increase in profitability
4Q23 The company's revenue was 1.797 billion yuan, +34.97%/+23.49% YoY, and net profit to mother was 129 million yuan, +45.93%/+18.29% YoY. The company's gross profit margin in '23 was 17.91%, +0.32pct year on year, net profit margin 7.16%, and +1.20 pct year on year. It mainly benefited from the rapid growth of the company's orders, and the scale effect was outstanding. The cost rate for the 23-year period was -0.86 pct to 9.06% year-on-year. Among them, sales, management, R&D, and finance expenses were -0.03 pct, -0.43 pct, -0.26 pct, and -0.14 pct, respectively, and the cost rate was relatively stable. Net cash flow from operating activities was 367 million yuan, +148.67% YoY.
New energy vehicle structural parts business volume is rising sharply
By business, benefiting from the rapid development of the NEV industry, strong customer demand and the launch of power battery box products, the company's NEV mold and structural parts business had revenue of 3,674 billion yuan in '23, +43.68% year-on-year, with a gross profit margin of 19.44%, or +0.29pct year-on-year. Fuel vehicle structural parts business revenue was 759 million yuan, +8.39% year over year, gross profit margin 9.10%, -0.47 pct year on year. The energy storage structural parts business had revenue of 546 million yuan, a slight increase of +1.96% year-on-year, and a gross profit margin of 15.17%, or -0.09 pct year-on-year due to downstream customers' warehousing.
New orders have continued to be received. Since December 23, the fixed increase project strengthens the layout of new energy structural components, the company has successively disclosed fixed announcements for new projects, covering products such as new energy vehicles, power batteries, energy storage and photovoltaic inverters, and communication servers. The total project amount is 59.61 billion yuan, which is conducive to supporting the company's future revenue growth. In addition, the company launched a fixed increase in April, raising a total of 876 million yuan in capital. The funds raised this time will be used to expand the company's production capacity for new energy structural components such as power battery cases, optical storage inverter structural parts, and NEV structural parts, which will help guarantee the company's performance growth.
Risk warning: Sales of new energy vehicles fell short of expectations, increased competition in the industry led to declining profitability, and fluctuating raw material prices.